Further to the attached SENS, Roger Jardine, CEO of leading infrastructure development group, Aveng Group, said: “Through our focus on the construction and engineering value chain, combined with our geographic spread, the Aveng Group has maintained revenue of R16.9 billion and been partly cushioned from significant profit declines in a tough operating environment. The group’s balance sheet and order book remain strong and we are seeing positive results from group-wide efficiency programmes despite a slowdown of project awards and increased competitive pressures.”

“Challenging operating conditions aside, the group has won key projects during the period including a more than R2 billion McConnell Dowell joint venture project in Australia for the engineering, procurement and construction of a natural gas transmission pipeline network. This pipeline is a key component of the Queensland Curtis LNG project, which will convert coal seam gas in Queensland into liquefied natural gas for export,” said Jardine. Other project wins during the period included expansions of water treatment projects for mining clients, as well as significant mining and rail projects in Africa.

Aveng Trident Steel invested in a R140m state-of-the-art steel press that will improve its service in supplying shaped blanks to the motor industry. This will be located at its Port Elizabeth facility and is the first equipment of its kind in the region, ensuring that automotive components are closer to the manufacturing facility, improving logistical efficiencies.

On competition issues in South Africa, Jardine said the Aveng Group was working with the Competition Commission to ensure that the investigation into the construction sector is transparent and concluded as soon as possible. “This is in line with the Aveng Group’s extensive programme aimed at eradicating anticompetitive behaviour which, it seems, had found its way into business practices across many sectors of the South African economy. Collectively – as businesses, consumers and individual citizens – we all stand to benefit from transparent and ethical business processes.”

Commenting on the group’s outlook in the short to medium term Roger Jardine said: “Despite the tough operating conditions we find ourselves in, an encouraging number of projects have been secured in various industries and locations in the last six months. The rate of recovery in the domestic infrastructure market will largely be driven by public sector spend, specifically, the timing of Government’s R808 billion infrastructure spend. Our estimates reveal that 25% of this committed value relates to civil engineering projects for which Aveng Group will compete once tender processes begin. Aveng Group continues to reinforce its leadership position in the infrastructure value chain aimed at ensuring we realise shareholder value in the long term.”

- Ends –

To access the presentation please go to: www.aveng.co.za

For further information contact:
Kim Heller, Group Corporate Affairs Manager
Tel: +27 82 867 8344, kimh@aveng.co.za

Issued by:
Brunswick South Africa on behalf of The Aveng Group
Tel: + 27 11 502 7300
Fax: + 27 11 268 5747

Byron Kennedy Tel: +27 82 453 2066
Iris Pilane Tel: +27 71 680 0236
Felicity Hudson Tel: +27 71 680 0234