Aveng reported a headline loss of R335 million (December 2016: R391 million) and a net loss of R346 million (December 2016: R429 million).
Basic loss per share was 87.4 cents loss per share compared to a 98.8 cents loss per share in the comparative period and headline loss per share decreased to 84.4 cents loss per share (December 2016: 98.5 cents loss per share).
Outlook and prospects
The markets serviced by McConnell Dowell are expected to continue to offer growth opportunities with the continued roll out of large- and medium-sized projects in the major Australian cities. In Southeast Asia, opportunities exist in infrastructure in Singapore, Malaysia, Thailand, Indonesia 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. However, recent changes in the political environment have led to an improved sentiment in South Africa. There are opportunities to increase exports for the manufacturing operations.
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 implementation of the strategic plan. Non-core assets have been identified and a disposal process has commenced.
Work has commenced on a potential capital market transaction and further details will be provided at the appropriate time.