Aveng revenue slides despite strategic review

Two years ago it appointed former ArcelorMittal chief financial officer Kobus Verster as its CEO following the resignation of Roger Jardine.

Construction group Aveng reports a drop in interim revenue despite its efforts to halt the slide through its strategic review.

“Aveng continues to execute its strategy in three distinct phases. Despite the progress made in the implementation of this strategy and noticeable improvements in project performance and cost reductions‚ the group is faced with continued weak markets‚” the company said.

Aveng said it was “cognisant” of its poor share performance relative to the sector and would accelerate the review to unlock shareholder value.

In the six months to December 31 2015‚ Aveng reported a 25% drop in revenue to R18bn while operating profit plunged by 87% to R52m compared with the year-earlier period.

The company reported a headline loss per share of 58c from headline earnings per share (HEPS) of 34.5c.

Aveng has not made an annual profit since 2013‚ challenged by the dearth of large state infrastructure spend matching preparations for the 2010 World Cup.

Two years ago it appointed former ArcelorMittal chief financial officer Kobus Verster as its CEO following the resignation of Roger Jardine.

Weak global demand and pressure on commodity prices that resulted in mine closures were among the factors that weighed on SA’s beleaguered construction sector.