Aveng grows order book, expects solid interim performance

Thu, 20th January 2022

<p>JSE-listed construction group Aveng has grown its order book to R29.1-billion as at December 31.</p> <p>This includes A$1.1-billion worth of work won by its Australia-focused subsidiary McConnell Dowell.</p> <p>The work includes a redevelopment project at the Queen Elizabeth Hospital, in Adelaide; major road projects, in Victoria; and multiple water industry contracts in New Zealand.</p> <p>Moreover, McConnel Dowell expects to successfully convert A$2.1-billion worth of preferred tender projects into new work, including a bridge in Tasmania, level crossing removals in Melbourne and a transport project at Perth’s Midland station.</p> <p>The company reports that, for the six months ended December 31, McConnell Dowell, Moolmans and Trident Steel performed well at revenue and operating profit levels, despite ongoing challenging Covid-19 restrictions in the five countries the group operates in.</p> <p>The Moolmans business, meanwhile, undertook remedial action on the Tshipi manganese and Kolomela iron-ore contracts, in South Africa, it has been having trouble with. The Kolomela contract has recovered from previously noted underperformance and has been profitable in the six months under review.</p> <p>Aveng has also concluded a successful renegotiation on the Tshipi contract with improved commercial terms.</p> <p>Moolmans’ operating profit for the six months is expected to be in line with budget.</p> <p>Aveng says further that Trident Steel continues to outperform as a steel service centre business for mostly the automotive sector. The business’ operational profitability is expected to exceed budget in the interim reporting period.</p> <p>The group expects to publish its interim results on February 22.</p> Go back