(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
ISIN: ZAE000111829 -
SHARE CODE: AEG
("Aveng", "the Company" or “the Group”)
In terms of paragraph 3.4 (b) of the JSE Limited Listings Requirements, a listed company is required
to publish a trading statement as soon as a reasonable degree of certainty exists that the financial
results for the upcoming reporting period will differ by more than 20% from those of the previous
The Group expects basic earnings per share (“EPS”) and headline earnings per share (“HEPS”) for
the year ended 30 June 2017 to be substantially more than 20% lower than the basic EPS loss of
(25.4) cents and basic HEPS loss of (75.2) cents reported for the previous comparative period.
This follows continued weak market conditions for the South African businesses, operational
underperformance and accelerated claims settlements at McConnell Dowell, an increased net interest
expense as well as the impact of previously reported settlements and the agreement concluded with
the South African government.
Shareholders are advised that a further trading statement will be released as soon as there is a
reasonable degree of certainty as to the likely range by which the Group’s EPS and HEPS are
expected to decrease.
As previously announced, the arbitration hearings have been completed. The finding of the Tribunal is
awaited and Aveng expects that an award is likely to be reported within the current financial year’s
Aveng continuously reassesses the position recognised on all its recorded uncertified revenue. The
Group has noted increasingly difficult, litigious and costly processes in bringing long outstanding
claims to commercial conclusion. Despite the unchanged view of the merits of its existing claims,
management is in the process of evaluating previously recognised uncertified revenue considering the
abovementioned conditions. This may result in the derecognition of certain previously recorded
uncertified revenue. Such an adjustment may lead to a further reduction in earnings beyond currently
anticipated results. The Group will continue to robustly pursue its commercial entitlements in relation
to these claims.
Shareholders are therefore advised to continue to exercise caution when dealing in their Aveng
securities until a further announcement is made.
The financial information contained in this trading statement has not been reviewed nor reported on
by Aveng's independent external auditors.
This announcement includes forward-looking statements that reflect the current views and
expectations of the Board with respect to future events and financial and operational performance. All
statements, other than statements of historical fact are, or may be deemed to be, forward-looking
statements, including, without limitation, those concerning the Group’s strategy; the economic outlook
for the industry; and the Group’s liquidity and capital resources and expenditure.
These forward-looking statements speak only as of the date of this announcement and are not based
on historical facts, but rather reflect the Group’s current expectations concerning future results and
events. The Group undertakes no obligation to update publicly or release any revisions to these
forward looking statements to reflect events or circumstances after the date of this announcement.
UBS South Africa Proprietary Limited
17 May 2017
Group Executive: Strategy & Investor Relations
Tel: 011 779 2979
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