AVENG LIMITED - Trading statement, operational update and strategic review

Trading statement, operational update and strategic review

AVENG LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1944/018119/06)
ISIN: ZAE000302618
SHARE CODE: AEG
("Aveng" or "the Group")


TRADING STATEMENT, OPERATIONAL UPDATE AND STRATEGIC REVIEW


TRADING STATEMENT

This trading statement is in accordance with paragraph 3.4 (b) of the JSE Listings Requirements, which
requires issuers to publish a trading statement as soon as they are satisfied that a reasonable degree
of certainty exists that the financial results for the period to be reported on will differ by at least 20%
from those of the prior comparative period.

Shareholders are hereby advised that a reasonable degree of certainty exists that the results for the
year ended 30 June 2024 will result in the Company reporting an earnings per share profit and a
headline earnings per share profit for the year ended 30 June 2024, in comparison to the earnings per
share loss of A$82.4 cents and headline loss per share of A$61.6 cents in the prior year. The financial
statement close and related audit and governance processes remain underway. A further trading
statement will be released providing shareholders with ranges for earnings per share and headline
earnings per share, as required by the JSE Listings Requirements, once the processes have
progressed to provide a reasonable degree of certainty.

The financial information on which this trading statement is based has not been reviewed or reported
on by the Group's auditors.

OPERATIONAL UPDATE

Aveng delivers its projects through three operating brands in three distinct segments. The Infrastructure
segment, branded McConnell Dowell, operating in three geographical regions – Australia, New Zealand
& Pacific Islands and Southeast Asia; the Building segment, branded Built Environs, operating in New
Zealand and the Australian states of Victoria and South Australia and the Mining segment branded
Moolmans, operating in South Africa.

Infrastructure

McConnell Dowell is expected to report a positive performance for the year ended 30 June 2024.
Operating earnings are expected to reflect an improvement on the prior year, including after adding
back the loss associated with the BLNG project in 2023. This reflects the continued strong performance
of the underlying business. This is supported by continued strong liquidity and cash flows. As expected,
work in hand has reduced reflecting the timing of larger infrastructure project awards, particularly for
government funded projects.

Building

Built Environs is expected to report increased revenue and improved operating earnings as compared
to the prior year. The growth in revenue is in line with the business unit's growth agenda, enabling the
business unit to operate at scale across its three regions. Work in hand has come off peak levels but
remains at comfortable levels to maintain similar revenue levels going forward.

Mining

Moolmans is expected to report marginal operating earnings for the year ended 30 June 2024.
Operating margins remain under pressure, primarily associated with the Tshipi contract. Other mining
clients have been negatively impacted by infrastructure constraints, leading to reduced work in hand.
Moolmans is currently in discussions with existing clients on opportunities to redeploy equipment in
support of increased volumes.

Group Liquidity

The Group is expected to report both an improved cash balance and net cash position of A$173 million,
excluding IFRS16 liabilities. Current debt comprises asset backed finance, pre-dominantly at
Moolmans. Previously reported term debt at McConnell Dowell was settled in the year.

STRATEGIC REVIEW

Following the appointment of Scott Cummins as Group Chief Executive Officer, the Board has directed
management to conduct a detailed review of the corporate strategy for the Group. The objective of this
review is to explore options available to Aveng and its subsidiaries, to enhance stakeholder value and
maximise value to shareholders, by ensuring that the value of Aveng's assets is fully recognised. Aveng
has appointed Macquarie Capital to assist with this strategic review.

Aveng intends to progress the review promptly and will keep shareholders informed of material
developments as appropriate.

The Group expects to release its audited results on or about 20 August 2024.

12 August 2024

Boksburg, South Africa


JSE Sponsor
Valeo Capital (Pty) Ltd

Edinah Mandizha
Company Secretary
Tel: 011 779 2800
Email: Edinah.mandizha@avenggroup.com

Executive Directors
SV Cummins (Group Chief Executive Officer) | AH Macartney (Group Finance Director and Chief
Financial Officer)

Non-Executive Directors
PA Hourquebie (Independent Non-executive Chair) | B Modise (Independent Non-executive) | N Bowen
(Independent Non-executive) | SJ Flanagan (Non-executive) | BC Meyer (Independent Non-executive)
| D Noko (Independent Non-executive)

Registered office
Rose Avenue, 2 Merlin Drive, Parkhaven – Boksburg, Gauteng 1459

Forward looking statements

Certain statements in this document are not reported financial results or historical information but forward-looking statements. These include but
not limited to statements about the Group's operations, financial conditions, earnings, and growth prospects. They are based on the best estimates
and information of Aveng at the time of writing. They are nonetheless subject to significant uncertainties and contingencies, many of which are
beyond the control of the Group.
Unanticipated events may occur, and actual future events may differ materially from current expectations due to changes in priorities by the Group,
engagement with clients, suppliers, external auditors and other stakeholders.

Date: 12-08-2024 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.