Revenue for the year lowered to R23.5 billion (2016: R33.8 billion). Gross loss was recorded at R3.1 billion (2016: earnings of R2.5 billion). Net operating loss was R5.4 billion (2016: earnings of R146 million). Loss for the period attributable to equity-holders of the parent widened to R6.7 billion (2016: loss of R101 million). In addition, headline loss per share was recorded at 1 625.3 cents per share (2016: loss of 75.2 cents per share).
Outlook and prospects
The markets serviced by McConnell Dowell are expected to offer growth opportunities over the medium-term. In Australia, the continued roll-out of large-and medium-sized projects in the major cities is set to continue. In Southeast Asia, opportunities exist in infrastructure in Singapore, Malaysia, Thailand and the Philippines. Government investment in large-scale transport and water projects will fuel growth in the New Zealand market.
Domestically the outlook for the infrastructure market remains subdued with limited visibility on large-scale projects. The muted outlook is expected to extend into the manufacturing sector. However, there are opportunities to increase the penetration into selected international markets.
The local construction and manufacturing businesses will remain focused on improving financial performance in what is expected to be a continuously difficult market environment.
The improved contract mining environment and some notable contract wins place the operating group in a strong position to pursue its longer-term growth strategy in selected international markets.
Furthermore, the focus will remain on optimisation efforts in Aveng Steel to deliver a break-even result in the current depressed market conditions, which are expected to persist.
The immediate priority for the Group will be the completion of the strategic and operational reviews. Non-core assets have been identified and a disposal process has commenced.
The improvement of liquidity headroom will remain a key focus in the immediate term.
Resignation of Aveng CEO
Aveng announces that Mr Kobus Verster has informed the Company's board of directors of his resignation as chief executive officer and executive director, with immediate effect.
Kobus has made the decision to step down as CEO of the Company to pursue other opportunities.
Mr Eric Diack will assume the duties of CEO, until such time as a new CEO has been appointed.