Aveng reports revenue growth amidst weaker full year results

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The construction, infrastructure and engineering group reported that revenue increased from 40.8 billion rand in 2012 to 51.7 billion rand in 2013 and operating earnings were up 24 per cent from 535 million rand to 627 million rand.

“Revenue increased over the comparable period as a result of significant activity on a number of large projects, aided by currency weakness within the construction and engineering: Australasia and Asia operating segment, and significant growth in revenue achieved by the mining operating segment,” the group said in a statement.

“Within the mining operating segment, Aveng Moolmans delivered a strong performance from an improved operational performance favourably impacting on margins, especially in South Africa and West Africa, partly offset by underperformance from Aveng Mining Shafts and Underground.”

Net operating earnings increased from 613 million rand in 2012 to 656 million rand in 2013 while the group’s headline earnings decreased six per cent from 495 million rand to 466 million rand.

“The direct cost of labour disruptions on the group’s net operating earnings amounted to 350 million rand. Of this amount, 270 million rand was in respect of Aveng Grinaker-LTA, with the remaining 80 million rand affecting the mining, manufacturing and processing operating segments,” Aveng had said.

“Of the above, the direct costs of strike action on the groups Lephalale projects amounted to 250 million rand.”

Headline earnings per share decreased three per cent from 128.1 cents in 2012 to 124.6 cents in 2013, the net asset value per share was 34.12 rand and no dividend was declared.

The [DATA AEG:Aveng] group also entered into a 307 million rand settlement agreement with the Competition Commission in June 2013.

“The group experienced a difficult year with a very disappointing performance from Aveng Grinaker-LTA, a much improved result from McConnell Dowell as well as sustained performance from Aveng Mining. The impact of labour disruptions on the South African operations was material, both in terms of direct cost and loss of productivity,” Aveng explained.

“The group anticipates that public sector infrastructure spend in South Africa will remain slower than anticipated. Opportunities in certain selected key African markets remain an important focus area.”