AVENG CHAIRMAN`S STATEMENT
AVENG LIMITED
REGISTRATION NUMBER: 1944/018119/06
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
SHARE CODE JSE: AEG
ISIN: ZAE 000018081
AVENG CHAIRMAN`S STATEMENT - AGM FRIDAY 29 OCTOBER 2004
`Much has been made, in the press and elsewhere, of the government`s proposed
infrastructure spending, which is expected to have a significant impact on
construction and related businesses. While Aveng is well positioned to benefit
from any substantial increase in local construction and infrastructure
development, we are mindful that such activity has a lengthy gestation period
and will only provide benefits in the medium to long term.
In the shorter term our clients in the mining industry continue to face the
challenges of a stronger than expected Rand. Broad construction activity,
outside of the housing market, remains flat locally and internationally and is
unlikely to increase in the short term.
Holcim is sharing the benefit from increased consumer demand for cement, which
has shown substantial growth over the past year.
The steel and allied cluster is benefiting from the solid increase in vehicle
production.
Accordingly the short term outlook is in line with the statement made at the
time of the annual report, namely that trading conditions will continue to
remain difficult for the six months to December 2004. Thereafter, dependent on
a number of macro economic factors, the group should resume its profitability
growth path. There is no doubt that the now leaner and more focused Aveng,
together with its empowerment partners at all levels of the business, is well
prepared to meet whatever challenges the future may bring, in addition to
achieving the objectives it has set for itself in the medium to long term.`
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 has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
