Aveng Grinaker-LTA

Chris Botha
Managing Director

Aveng Grinaker-LTA is a multi-disciplinary construction and engineering group, anchored in South Africa, with expertise in a number of market sectors; power, mining, infrastructure, commercial and industrial, oil and gas. Services include building, civil engineering, concessions, earthworks, property development and mechanical and electrical engineering.

The repositioning of Aveng Grinaker-LTA continues in a challenging environment. The South African construction and engineering industry, in which the operating group generates
92% of its revenue, remains subdued. Increased competitiveness for diminishing volumes of work is a key characteristic of the market, and industrial action continues to have a large impact, particularly on major projects. These factors added a material additional financial burden during the 2013 financial year. Aveng Grinaker-LTA contributed 15% to the Group’s revenue and 18% to the two-year order book at 30 June 2013.

A review of the specialised businesses within Aveng Grinaker-LTA resulted in a decision to move the non-core construction businesses of Aveng Steel Fabrication (ASF, previously DSE Steel Fabrication) to Aveng Steel, and Facades and Automation and Control Solutions (ACS) to Aveng Manufacturing with effect from 1 July 2013. The businesses of Karrena, Concrete Repairs, Rand Roads and Ground Engineering (GEL) have been retained in Aveng Grinaker-LTA. The results of ASF, Facades and ACS are included in the Aveng Grinaker-LTA report for the 2013 financial year.

Performance summary for 2013 Financial Year 2012 2013
Revenue (Rm)* 7 480** 7 651
Contribution to Group Revenue for 2013   15%
Safety Performance (LTIFR) 0, 25 0, 28

Safety and health
Aveng Grinaker-LTA suffered four fatalities (2012: six) during the period under review. The LTIFR increased marginally to 0,28 (2012: 0,25). With the assistance of a dedicated SHEQ
manager, the operation has intensified its focus on safety as a core value with the aim of achieving a zero fatality environment. A number of LTI-free targets were met during the year.
The operating group commenced the rollout of the employee wellbeing programme and achieved an engagement rate of 5% for the financial year. The programme has been well received, and further training and awareness sessions to increase the utilisation of the programme have been planned for the year ahead.

A shortage of skills in the construction and engineering industry continues to have a negative impact on productivity. To mitigate this impact Aveng Grinaker-LTA operates civil engineering, mining engineering and welding training centres.

Aveng Grinaker-LTA has adopted the Group’s environmental framework to drive an increased focus on environmental management as a core value.
The Department of Environmental Affairs head office in Pretoria was awarded a six-star Green Star certification for office design from the Green Building Council of South Africa in May 2013.

For more information on the operation go to www.avenggrinaker-lta.co.za

For more on performance view the Integrated Report 2013