Aveng’s (AEG) share price jumped 13.6% to R4.60 on Wednesday after the construction group said its headline loss had halved in its past financial year.
Aveng said in a trading statement it expected to report on August 23 its headline loss per share for the year to end-June would narrow to between 65c and 79c from the previous year’s 144.3c.
The group raised R860m by selling its share of four major infrastructure investments and a further R252m by selling 70% of Aveng Steeledale‚ the company said in a statement.
It is still in negotiations relating to the sale of Aveng Trident Steel and Aveng Steel Fabrication. It is also negotiating the introduction of an empowerment partner for Aveng Grinaker-LTA.
The group attributed the reduction in its headline loss to an improved financial performance from Aveng Grinaker-LTA following the completion of loss-making and noncontributing contracts.
Negatives during the financial year included restructuring expenses and underperformance on certain contracts in Australian subsidiary McConnell Dowell.
There were also additional expenses on a problematic water contract in Aveng Water and contract cancellations and activity reductions in Aveng Mining.