Aveng shares benefit from announcement that its losses have halved

Posted On Thursday, 11 August 2016 12:56 Published by
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Aveng’s share price jumps 13.6% to R4.60 after the construction group says its headline loss have halved in its past financial year.

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Aveng’s (AEG) share price jumped 13.6% to R4.60 on Wednesday after the construction group said its headline loss had halved in its past financial year.

Aveng said in a trading statement it expected to report on August 23 its headline loss per share for the year to end-June would narrow to between 65c and 79c from the previous year’s 144.3c.

The group raised R860m by selling its share of four major infrastructure investments and a further R252m by selling 70% of Aveng Steeledale‚ the company said in a statement.

It is still in negotiations relating to the sale of Aveng Trident Steel and Aveng Steel Fabrication. It is also negotiating the introduction of an empowerment partner for Aveng Grinaker-LTA.

The group attributed the reduction in its headline loss to an improved financial performance from Aveng Grinaker-LTA following the completion of loss-making and noncontributing contracts.

Negatives during the financial year included restructuring expenses and underperformance on certain contracts in Australian subsidiary McConnell Dowell.

There were also additional expenses on a problematic water contract in Aveng Water and contract cancellations and activity reductions in Aveng Mining.

source: BDpro

Last modified on Friday, 12 August 2016 13:31

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