|
AVENG LIMITED - Unaudited interim report for the six months ended 31 December
2002
AVENG LIMITED
(Registration number: 1944/018119/06)
ISIN: ZAE000018081
Share code: AEG
"Targeting consistent long-term value"
- Revenue up 18%
- Headline earnings up 23%
- Diluted headline EPS up 21%
Unaudited interim report
for the six months ended 31 December 2002
Consolidated balance sheet
Audited
31 Dec 31 Dec Percentage 30 June
Rm 2002 2001 change 2002
ASSETS
Property, 1 804,8 1 507,4 1 770,0
plant and
equipment
Goodwill 1 017,1 1 029,2 1 075,7
Investments 490,9 465,7 507,9
Inventories 1 388,0 1 104,3 1 249,5
Trade and 2 865,1 2 159,9 3 020,6
other
receivables
Cash and cash 709,8 361,1 678,6
equivalents
TOTAL ASSETS 8 275,7 6 627,6 8 302,3
EQUITY AND
LIABILITIES
Shareholders" 2 540,5 2 323,0 2 555,0
funds
Minority 199,5 185,0 248,7
interests
Interest-
bearing
borrowings
- long-term 551,6 675,2 614,9
Deferred 86,0 94,7 66,9
taxation
Trade and 3 533,5 2 440,7 3 507,5
other
payables
Interest-
bearing
borrowings
- short-term 1 318,7 839,2 1 253,3
Taxation 45,9 69,8 56,0
TOTAL EQUITY 8 275,7 6 627,6 8 302,3
AND
LIABILITIES
Net debt to 42,4 46,0 (8) 42,4
equity ratio
(%)
Net asset
value per
ordinary
share (cents) 641 586 9 645
Included in investments are associated and joint venture companies comprising
unlisted investments which were valued by the directors at not less than their
carrying value.
Statement in changes in equity
Six months ended Year ended
31 Dec 31 Dec 30 June
Rm 2002 2001 2002
Shareholders"
funds and
debentures at
the beginning
of the period 2 555,0 2 012,9 2 012,9
Conversion of (169,6)
debentures
Disposal of 125,0 170,1
treasury
stock
Dividends (105,2) (74,3) (74,3)
paid
Earnings for 307,3 125,9 362,5
the period
Foreign (215,3) 133,5 77,7
currency
translation
Repurchase of
shares by
the Share (1,3)
Trust
Premium on
issue of
ordinary
shares to 175,7
redeem the
debentures
2 540,5 2 323,0 2 555,0
Consolidated cash flow
Audited
Six months ended Year ended
31 Dec 31 Dec 30 June
Rm 2002 2001 2002
Cash retained from 95,7 (93,2) 216,8
operating
activities
Net fixed assets (272,2) (146,4) (624,4)
purchased
Acquisitions net of 0,3
disposals
Investments - other 205,5 260,9 243,7
Net long-term (51,4) (51,7) 48,9
borrowings
Proceeds from
disposal of
treasury shares 125,0 169,0
Net increase/
(decrease) in
cash and cash (22,4) 94,6 54,3
equivalents
Cash and cash
equivalents at
beginning of period (430,9) (485,2) (485,2)
Cash and cash
equivalents at
end of period (453,3) (390,6) (430,9)
Capital expenditure
Six months ended Year ended
31 Dec 31 Dec 30 June
Rm 2002 2001 2002
Expansion 129,1 65,9 315,6
Maintenance 169,1 100,2 387,5
298,2 166,1 703,1
Commitments
for future
capital
expenditure:
Contracted 117,7 35,3 183,7
Authorised, 201,7 263,3 152,0
but not
contracted
for
319,4 298,6 335,7
Contingent liabilities
Claims which may result from pending litigation and guarantees issued amount to
R94,5 million compared to R91,0 million at 30 June 2002
Consolidated income statement
Audited
Six months ended Year ended
31 Dec 31 Dec Percentage 30 June
Rm 2002 2001 change 2002
Revenue 6 968,9 5 930,6 18 13 185,2
Operating
income before
depreciation 467,2 418,2 12 1 008,3
Depreciation 195,9 175,4 364,2
Operating 271,3 242,8 12 644,1
income
Income from
associates and
joint ventures 90,8 64,1 113,8
Income from 20,4 11,3 48,6
investments
Income before 382,5 318,2 806,5
interest paid
Interest paid 139,5 112,5 242,6
Income before 243,0 205,7 18 563,9
exceptional
items
Amortisation (27,7) (28,5) (53,8)
of goodwill
Non-trading 145,3 (4,6)
items
Income before 360,6 177,2 103 505,5
taxation
Taxation 45,8 40,0 119,7
Income after 314,8 137,2 129 385,8
taxation
Minority 7,5 11,3 23,3
interests
Earnings 307,3 125,9 144 362,5
Net
adjustments
for
amortisation
of goodwill
and non- (117,6) 28,5 58,4
trading items
Headline 189,7 154,4 23 420,9
earnings
Earnings per
share (cents)
Diluted 48,7 40,1 21 107,3
headline
Diluted 78,9 32,7 141 92,4
earnings
Headline 48,7 41,6 17 111,2
Earnings 78,9 33,9 133 95,7
Number of
shares
(millions)
In issue 396,1 396,1 396,1
Weighted 389,5 371,3 5 378,6
average
Diluted 389,5 385,2 1 392,3
weighted
average
Dividend per 27,0
share (cents)
Non-trading
items
Net
(surplus)/loss
on disposal
of properties 0,6 (1,3)
Net
loss/(surplus)
on disposal
of investments (145,9) 5,9
(145,3) 4,6
Segmental analysis
Revenue
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 Jun
2002 2001 2002
Business Rm Rm Rm
segmentation
Construction 4 895,2 4 409,2 9 559,2
Steel and 2 073,7 1 521,4 3 626,0
Allied
6 968,9 5 930,6 13 185,2
Operating income
Six Six
months months Year
ended ended ended
31 Dec 31 Dec 30 Jun
2002 2001 2002
Rm Rm Rm
142,6 162,7 345,0
128,7 80,1 299,1
271,3 242,8 644,1
Revenue
Geographical
segmentation
Republic of
South
Africa (CMA)* 4 119,0 3 114,1 7 286,5
Africa and 1 846,0 1 725,3 3 499,6
Middle East
Australasia
and South
East Asia 1 003,9 1 091,2 2 399,1
6 968,9 5 930,6 13 185,2
Assets
3 975,8 2 745,4 3 701,3
1 985,0 2 154,5 2 537,8
1 114,2 900,9 876,7
7 075,0 5 800,8 7 115,8
*Common monetary area of South Africa, Namibia, Lesotho and Swaziland.
Notes
Accounting policies
The accounting policies applied are in accordance with South African Statements
of Generally Accepted Accounting Practice, the Listings Requirements of the JSE
Securities Exchange South Africa, Schedule 4 of the South African Companies Act
and are consistent with those of the prior reporting period with the exception
of the adoption of AC133 "Financial Instruments: recognition and measurement".
The effect of the adoption of AC133 is not material.
The financial information has been presented in accordance with AC127 "Interim
Financial Reporting".
Commentary
Financial review
Aveng traded well over the six-month period with revenues and headline earnings
increasing 18% and 23% respectively.
In line with the group"s stated objectives, diluted headline earnings per share
increased by 21%, exceeding the targeted 20% growth rate. The average return on
equity for the half year was 14,1% compared to 13,4% at December 2001.
The appreciation of the rand to the US dollar, from R10,37 at June 2002 to R8,66
at December 2002 resulted in an unrealised foreign currency translation loss of
R215 million on net assets. The operating income was negatively impacted by an
R18 million foreign exchange loss for the six months to 31 December 2002,
compared to an R86 million foreign exchange gain for the year ended 30 June
2002.
The secondary effects of the strengthening Rand have been firstly that 59% (53%)
of the half year"s revenue was generated in the Rand area and secondly that
construction contributed 53% (67%) of the group"s operating income.
Net debt levels have reduced marginally to R1 160 million over the period.
However, the net debt to equity ratio has improved to 42,4% compared to 46,0% at
December 2001. This was achieved despite a high level of capital expenditure of
R298 million in the past six months and R835 million in the twelve months since
December 2001. In addition, R100 million was expended on extraordinary steel
purchases ahead of the January 2003 price increases. If the foreign currency
translation charge is excluded, the group"s net debt to equity ratio would have
been 39%, halfway to our 35% target.
Operational review
Construction revenue for the six months grew by 11% while operating income
declined by 12%. This division generates the major portion of its revenue
outside South Africa, principally in US dollars. The strengthening rand
negatively affected earnings for the period while having a limited positive
impact on input costs. In the longer term, this trend is expected to reverse.
The order book for the next two years of R8,2 billion compares to R8,8 billion
at December 2001, a reflection of the 19,8% weaker dollar as well as the ongoing
drive for quality work.
Steel & Allied, comprising Trident Steel, Grinaker-LTA Infrastructure and Mining
Services as well as the Aveng corporate office, benefited significantly from
higher activity levels in the steel based construction and manufacturing
sectors. While overall activity in the sector is being retarded by the
significant steel price increases and by the strengthening rand, the division
should continue to show growth for the remainder of the financial year. The new
factory at Roodekop is on programme for commissioning in June 2003.
Cement has benefited from an active local market. Industry volumes for the six
months were 9,9% higher than the comparable prior period. Alpha"s non-core 34%
interest in Omnia Limited and 33% interest in Natal Portland Cement (Pty)
Limited were sold. The R280 million expansion at Dudfield"s No 3 Kiln remains on
track for completion by December 2003.
Dividend
It is the group"s policy to declare dividends once a year, after its financial
year-end at 30 June.
Prospects
The board continues to believe that in order to best balance business risk, it
is in the long-term interest of the group to retain its objective of generating
50% of its revenues in "hard currencies". This will naturally impact on earnings
and asset values, as currencies fluctuate but will provide the best long-term
stability.
Trading conditions within South Africa have been buoyant. However, in the face
of the current international political and economic difficulties and the
uncertainty of the rand/dollar exchange rate, it is unlikely that the group will
manage to maintain the same growth in earnings for the next six months.
For and on behalf of the board
Richard Savage (Chairman)
Carl Grim (Chief Executive)
Dennis Gammie (Financial Director)
Sandton, 10 March 2003
Directors: RB Savage* (Chairman), PL Erasmus* (Deputy Chairman), C Grim (Chief
Executive), CV Campbell**, PF Crowley, DR Gammie, JR Hersov*, HDK Jones, VZ
Mntambo*, AR Mpungwe**, BP Steele*, M Taback**,
W Wassermeier *Independent non-executive **Non-executive Company secretary:
PH Hansen
Transfer secretaries: Computershare Investor Services Limited (Registration
number 1958/003546/06), 70 Marshall Street, Johannesburg, 2001, PO Box 61051,
Marshalltown, 2107, Telephone (011) 370-5000, Telefax (011) 370-5560
Aveng Limited Registration number 1944/018119/06 Share code: AEG ISIN code:
ZAE 000018081 Registered office: 19 Impala Road, Chislehurston, Sandton, 2196
Grinaker-LTA
Trident
Alpha
Targeting construction in the developing world supported locally by steel and
cement
For more information visit www.aveng.co.za
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
