Aveng issues profit warning

Posted On Tuesday, 03 February 2004 02:00 Published by Commercial Property News
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Aveng could be 50% lower than that of a year earlier

Carl Grim AvengListed construction and building group Aveng (AEG) warned on Monday that profits for both its interim results to end-December 2003 and the year ending June 30, 2004, could be in the region of 50% lower than that of a year earlier.

Aveng had previously cautioned in October and more recently on January 5 that its interim earnings could be materially lower, with "materially" defined by the JSE Listing Requirements as between 10% and 30% lower than a year earlier.

In a statement, Aveng said that following a continued detailed analysis of project profitability and the "knock-on" effect of the currency strength on non-rand-denominated contracts in southern Africa within the Grinaker-LTA stable, its latest projections indicated "a substantial reduction in profits for both the interim period and the year ending 30 June 2004, which may be in the region of 50% lower than that of the corresponding periods".

The group said management is taking urgent corrective action, including a significant curtailment of the international operations of the Roads and Earthworks division of Grinaker-LTA, and a downscaling of the division.

The performance of the remainder of the Aveng group remained in line with expectations, it added.

Aveng expects to report its interim results on March 8 and its final results on September 13.

Last modified on Friday, 21 June 2013 21:53

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