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



CHANGE IN REPORTING CURRENCY AND TRADING STATEMENT



Change in reporting currency
Aveng has evolved into a business with two operating subsidiaries, McConnell Dowell and Moolmans,
with 91% of its revenue sourced from outside South Africa. The board of directors (“Board”) bases its
performance evaluation and many investment decisions on Australian Dollar financial information, being
the predominant transactional currency of the Group. The Board believes that Australian Dollar financial
reporting provides more relevant presentation of the Group’s financial position, funding and treasury
functions, financial performance and its cash flows.
Based on the above, Aveng has elected to change its reporting currency from the South African Rand
(ZAR) to the Australian Dollar (A$), with such change being implemented for the reviewed interim
condensed financial statements at 31 December 2023.
It should be noted that the functional currencies of the Group’s underlying businesses remain
unchanged. Functional currencies refer to the currencies of the primary economic environments in
which underlying businesses operate. Foreign exchange exposures will therefore be unaffected by the
change, albeit that the effects of such exposures will be presented in Australian Dollars.
To assist investors in understanding the change, the Group will provide summarised, restated Australian
Dollar financial information for the six months ended 31 December 2022 and restated financial
information for the year ended 30 June 2023 in compliance with International Financial Reporting
Standards (IFRS).
Trading statement
In accordance with paragraph 3.4 (b) of the JSE Listings Requirements, an issuer is required to publish
a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the
financial results for the period to be reported on will differ by at least 20% from those of the prior
comparative period.
The average and closing exchange rates of the ZAR relative to the A$, used in translating previous
reported numbers in this trading statement to A$, are detailed in the table below:



                              31 December 2023           31 December 2022          30 June 2023

                           Average        Closing      Average      Closing     Average     Closing

                              rate          rate        rate          rate        rate       rate

 1 Australian Dollar =

 South African Rand            12.20           12.49     11.60         11.54        12.34      12.55


Shareholders are accordingly advised that for the six-month period ended 31 December 2023, Aveng
revenue is anticipated to increase by 45% with improved operating earnings at both McConnell Dowell
and Moolmans.
Earnings from continuing operations are expected to improve as compared to the prior comparative
period by between 110% – 120%. Headline earnings for the current period are expected to improve by
between 72.7% - 81.1%.
Prior year earnings for the period include earnings from Trident Steel which was sold in the second half
of the 2023 financial year. Consequently, the Group’s earnings for the current period are expected to
be lower than the prior comparative period by between 76.6% - 84.0%.

The Group advises that it expects the results for the six-month period ended 31 December 2023 to be
within the following ranges:

                                                     Expected Earnings                     Reported Earnings
                                                         period ended                         period ended
                                                      31 December 2023                     31 December 2022
                                                   (excluding Trident Steel)               Restated (including
                                                                                              Trident Steel)
                                       A$’000              ZAR’m          % change          A$’000     ZAR’m
 Earnings for the period              650 – 950           7.7 – 11.2     (76.6) – (84.0)    4 065        48
 Headline earnings                  11 229– 11 796       132.7 – 139.4     72.7 – 81.1      6 513        77
                                      A$ cents           ZAR cents        % change         A$ cents     ZAR
                                                                                                       cents
 Basic earnings per share              0.4 – 0.8           4.8 – 9.5     (75.0) – (87.5)     3.2         38
 Headline earnings per share           8.6 – 9.1         100.9 – 106.8     65.4 -75.0        5.2         61
Other supplementary information:
                                                     Expected Earnings                     Reported Earnings
                                                        period ended                          period ended
                                                     31 December 2023                      31 December 2022
                                                                                                Restated
                                       A$’000              ZAR’m          % change          A$’000     ZAR’m
 Earnings     from     continuing     794 – 830           11.9 – 12.1      110 – 120         378         5
 operations


The Group expects to release its reviewed results for the six-month period ended 31 December 2023
on or about 20 February 2024.

The financial information on which this trading statement is based has not been reviewed or audited by
the Group’s auditors.

15 February 2024
Melrose Arch

JSE Sponsor
Valeo Capital (Pty) Ltd



Edinah Mandizha
Group Company Secretary
Tel: 011 779 2800
Email: investor.relations@avenggroup.com