Aveng up despite challenges
By Chris Sleight10 September 2013
South African contractor saw its net profits rise +7% for the year to the end of June, to ZAR 656 million (US$ 66 million). Revenues were up +27% to ZAR 51.7 billion (US$ 5.2 billion). However the company’s order backlog decreased -6% to ZAR 37.4 billion (US$ 3.7 billion) compared with the end of December last year.
A statement from the company said, “Operating conditions in South African construction and engineering markets remained challenging with performance adversely impacted by labour disruptions and some problem contracts.”
Another negative for the company was its ZAR 307 million (US$ 31 million) fine by the South African Competition Tribunal, in full and final settlement for historical anti-competitive behaviour.
However, Aveng said these negative factors were offset by a strong performance by Aveng Moolmans, which focuses on the African mining sector, and McConnell Dowell, which is active in Australasia and Asia.
Commenting on the results, Aveng Group acting CEO Kobus Verster said, “Aveng has faced a challenging year and our South African construction business has overshadowed resilient performance across other group operations.”
He continued, “We expect public sector infrastructure spending to remain subdued in South Africa and are therefore targeting growth in other markets as a priority. Aveng-Grinaker-LTA, Avent Mining and Aveng Manufacturing are targeting opportunities across the African continent, while MacDow is tendering for a number of large public private partnership and transport opportunities, which should place it in a good position going forward.”