Aveng has posted its interim results for the six months ended 31st December 2024, reporting its revenue having contracted by 8.1% to A$1.4 billion following an anticipated softening of infrastructure markets in Australia and New Zealand.
The Group reported significant losses from the Jurong Region Line (J108) and the Kidston Pumped Storage Hydro projects in its infrastructure segment which resulted in a combined loss of A$76.7 million (R855 million) for the period with the balance of the portfolio’s projects remaining profitable and cash generative, it says.
“For the remainder of the business, operating earnings improved in the building segment through continued solid project execution, with the Mining segment continuing to focus on steadily improving production performance, better commercial outcomes, and the pursuit of new work,” says Group CEO, Scott Cummins.
“The overall performance of the mining segment will be bolstered by the recent conclusion of a new 60-month contract at the Gamsberg Mine, which will deliver greater volumes, increased revenue, and improved profitability, allowing Moolmans to utilise and renew existing fleet, and add new equipment. Moolmans has worked with OEM suppliers and financiers to ensure new equipment is already on site to allow steady production increases and achieve full production from 1st of April 2025.”
He adds that the Group’s infrastructure segment will continue its good performance on the remainder of the portfolio of projects, securing new work and strengthening the order book as market conditions improve.
Continuing from the prior year, Avenge delivered an operating free cash inflow of A$16.1 million (December 2023: A$52.6 million inflow).
The Group closed with a higher cash balance of A$256.1 million (R3 billion) (June 2024: A$227.7 million i.e., R2.8 billion) and an improved net cash position of A$187.5 million (R2.2 billion; June 2024: A$173.7 million i.e., R2.1 billion) with both the South African and Australian liquidity pool balances increasing during the period.
As announced in early December 2024, Aveng completed the disposal of its 30% investment in the issued share capital of Dimopoint Pty Ltd. through its subsidiary Aveng Africa to Collins Property Group for cash proceeds of A$8.1 million (R96 million).
Cummins says that the Group remains committed to ensuring the success of its three businesses, McConnell Dowell, Built Environs, and Moolmans, but added that the overall strategic direction of Aveng is to pursue two separate and independent businesses remains unchanged.
“We are making steady progress on the separation strategy, and this remains the key focus for the remainder of this calendar year.”
