Aveng Group Limited
Incorporated in the Republic of South Africa
(Registration number: 1944/018119/06)
ISIN: ZAE000302618
SHARE CODE: AEG
("Aveng" or “the Group”)


 Trading statement for the six month period ended 31 December 2022




This trading statement is in accordance with paragraph 3.4 (b) of the JSE Listings Requirements, which requires issuers
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 comparative period.

Aveng expects to report increased revenues, softer operating earnings and flat earnings for the six months period
ended 31 December 2022 in comparison to the prior year comparative period.

The Group proactively deployed robust internal controls and measures to mitigate the impact of prevailing
macroeconomic challenges, continuing to make good progress in implementing its strategy of ensuring a fit-for-purpose
organisation capable of sustainable and profitable long-term growth.

Group revenue is anticipated to grow by 16% on the back of higher work in hand, particularly in the Australasian based
business, McConnell Dowell. McConnell Dowell’s revenue is expected to grow by 22%. Revenue at Aveng’s South
African-based contract mining business, Moolmans, is expected to taper back following the completion of projects in
the previous financial year. Trident Steel’s revenue is expected to increase by 58% and is currently in the process of
being sold.

64% growth in Group’s work in hand
Aveng’s work in hand, to date, has increased by c.64% from R31 billion as at 30 June 2022 to c.R50 billion. A growing
book is central to the Group‘s focus on implementing long-term growth strategies in its two core businesses on the
back of stringent execution coupled with reinvestment in our people, processes, systems and equipment.

Expected earnings for the period
The Group’s operating earnings for the six months are expected to be lower than the prior year comparative period by
between 13% - 17%. McConnell Dowell’s operating earnings are expected to increase, led by an excellent performance
the Australian business unit and above planned performance in New Zealand and the Pacific Islands, offset by
underperformance on one contract in Southeast Asia, which is nearing completion. Moolmans operating earnings are
expected to decrease from the prior comparative period mainly as a result of lower revenues and an underperformance
on one major contract which has been renegotiated, whilst Trident Steel’s operating earnings are expected to exceed
the prior year comparative period. The Group advises that it expects the results for the period ended 31 December
2022 to be within the following ranges:

                                                             Expected                            Reported Earnings
                                                             Earnings
                                                           period ended                             period ended
                                                         31 December 2022                        31 December 2021

                                                      ZAR'm               % Change                     ZAR'm
 Earnings for the period                              50 – 45              (6) – (15)                    53
 Headline earnings                                    80 – 76            more than 100                   17
                                                   Cents                  %                      Cents
 Basic earnings per share                         40 – 35             (7) – (19)                  43
 Headline earnings per share                      64 – 59           more than 100                 14
 Diluted earnings per share                       40 – 35             (2) – (15)                  41
 Diluted headline earnings per share              61 – 55           more than 100                 13

Expected normalised earnings for the period
The term normalised refers to performance measures (earnings for the period and earnings per share) excluding the
effects of specific non-recurring items associated with the capital restructure of the Group, IFRS 5 adjustments and
adjustments in respect of non-core assets. These adjustments include:
    • impairment loss on right-of use assets and intangible assets;
    • impairment loss or reversal of impairment of long-term receivables;
    • gains or losses on disposal of non-core assets and PPE;
    • fair value adjustments; and
    • early redemption of borrowings.

Normalised measures are used by management to assess the underlying sustainable performance of the Group and
do not replace the measures determined in accordance with IFRS as an indicator of the Group’s performance, but
rather should be used in conjunction with the most directly comparable IFRS measures.

As such, the Group advises that it expects normalised earnings for the period ended 31 December 2022 to fall within
the following ranges:
                                                 Expected Normalised                  Normalised Earnings
                                                       Earnings
                                            period ended 31 December 2022 period ended 31 December 2021
                                                ZAR'm            % Change                    ZAR'm
 Normalised earnings for the period             46 – 39          (44) – (52)                   82
                                                 Cents               %                       Cents
 Normalised basic earnings per share            38 – 32          (43) – (52)                   67
 Normalised diluted earnings per share          36 – 30          (43) – (52)                   63

The Group expects to release its reviewed results on or about 21 February 2023. The financial information on which
this trading statement is based has not been reviewed or audited by the Group’s auditors.


17 February 2023
Melrose Arch

JSE Sponsor
Investec Bank Limited


Itumeleng Lepere
Manager Investor Relations
Tel: 011 779 2800
Email: investor.relations@avenggroup.com