Aveng Upbeat About Prospects
Aveng Limited
JSE Code: AEG
ISIN Code: ZAE000018081
Johannesburg - Wednesday October 23, 2002
Construction-related group, Aveng Limited says that the first three months of
the current financial year had gone according to plan.
Speaking at the company`s annual general meeting held in Sandton this morning,
chairman Richard Savage re-iterated his comment in the 2002 annual report. He
said that given an operating environment akin to that experienced last year,
Aveng will be able to achieve growth in diluted heading earnings per share
similar to that which we report here, reinforcing our record of delivering
consistent long-term value.
He went on to tell shareholders that all three businesses - construction, steel
and cement - were performing well. "In the construction division all projects
are going well, work is being delivered to clients on budget and on time.
"We have recently received public recognition for our work performance on major
projects in which Grinaker-LTA is involved. For example earlier this week ABB
noted that the Kruger Mpumalanga International Airport was built in partnership
with Grinaker-LTA in a record 18 months. A senior executive also noted that ABB
has been involved in projects around the world, and never before has he worked
with such a co-operative team as ABB had on the project."
Mr Savage reported that Aveng`s steel businesses are continuing to flourish,
driven by the strength in demand from the automotive and construction
industries.
The cement business, which is housed in Aveng`s 46% investment in Alpha Limited,
is also experiencing buoyant trading conditions. According to Mr Savage, during
September industry cement sales measured on a daily basis were the highest they
have been for three years. Measured differently, on a moving annual basis,
industry cement sales for the six months to September were 4,9% higher than the
comparable period a year ago.
Mr Savage noted that the rationalisation of associated non-core businesses was
now almost complete with the conclusion of Alpha`s sale of its one-third
interest in Natal Portland Cement to Cimpor, effective from October 1, 2002.
Please note:
Aveng Limited is a South African based group. It was listed on the JSE
Securities Exchange SA in July 1999 with the stated objective of becoming a
globally competitive construction-related group focused principally on the
developing world. It aims to achieve consistent long-term value for all its
stakeholders.
Its major businesses are
Construction
Steel and Allied
Cement (46% investment in Alpha Limited)
Aveng`s objectives are:
To earn a return on average equity of 20%
To grow diluted headline earnings per share by 20%
To earn 50% of group revenues in hard currencies
To have a debt:equity ratio of 35%
Visit our website - www.aveng.co.za
ends
ISSUED BY : PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF : AVENG LIMITED
FURTHER INFORMATION : PENELOPE GRACIE
CONTACT : OFFICE +27 (11) 447-3301
MOBILE 082-55-77-444
Date: 23/10/2002 05:55:00 PM Produced by the JSE SENS Department
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