AEG : Trading statement:
(Incorporated in the Republic of South Africa)
(Registration number: 1944/018119/06)
SHARE CODE: AEG
("Aveng", "the Company" or "the Group")
The Group is expected to report an overall operating profit for the period. The operating performance
of core businesses over the first six months of the financial year has been positively impacted by the
return to profitability of the Moolmans business together with the continued profitability of McConnell
In accordance with section 3.4 (b) of the JSE Listings Requirements, issuers are required to publish a
trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported on will differ by at least 20% from those of the prior
Shareholders are advised that the financial results for the period ended 31 December 2019 are
expected to reflect a material improvement on the comparative period. The basic loss for the six
months ended 31 December 2019 is expected to be between R151 million and R185 million,
representing an improvement of between 84% and 80% from the R918 million loss reported in the
The headline loss for the period will improve to between R185 million and R226 million, representing
an improvement of between 74% and 68% from the restated headline loss of R703 million in the
The prior period headline loss has been restated from R770 million to R703 million (HEPS loss
decreasing to 5.5cps from 6.1cps). In the prior financial year, a restatement was reported following an
extensive assessment of asset health within Moolmans carried out in that financial year. This resulted
in certain costs being disaggregated within already recorded cost of sales to better reflect how the
asset components are utilised. Consequently, these costs have been reflected as a loss on
derecognition of components following early component failure.
It should be noted that the HEPS and EPS loss values were impacted by an increase in the weighted
average number of shares in the period. The weighted average number of shares in issue at 31
December 2019 has increased to 19 395.5 million (12 676.3 million at 31 December 2018). The
increase in the weighted average number of shares is as a result of the rights issue and shares
issued relating to the early redemption of the convertible bond in the prior year.
The HEPS loss is expected to reduce to be between 1.0cps and 1.2cps, representing an improvement
of between 83% and 79% compared to a restated loss of 5.5cps at 31 December 2018. The EPS loss
will be between 0.8cps and 1.0cps, representing an improvement of between 89% and 87% against a
reported loss of 7.2cps in the comparative period.
The Group will release its results for the period ended 31 December 2019 on 25 February 2020.
The financial information contained in this trading statement has not been reviewed nor reported on
by Aveng's independent external auditors.
21 February 2020
UBS South Africa Proprietary Limited
Group Executive: Strategy & Investor Relations
Tel: 011 779 2979
Date: 21-02-2020 03:41:00
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