Aveng Grinaker-LTA

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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.

Skills
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.

Environment
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