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News South Africa

Aveng's SA profits plummet

According to The New Age, construction and engineering group Aveng warned that it expected profit for the year ended June 30 to plummet because of delays in the government infrastructure programme and tough trading conditions. It said its earnings per share and headline earnings per share were likely to come in between 50% and 60% lower than in the corresponding period last year.

While "the group's [Australian] operating segments reflected either steady or improved financial performances compared with the comparative period," the group said, the South African business weighed down the group, who thought it necessary to "de-risk some new loss-making construction contracts." The poor performance of the South African construction and engineering business was attributable to losses and loss provisions on Aveng's sub-contract for the Medupi and Kusile power plants, The New Age says.

Read the full article on www.thenewage.co.za.

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