Enhanced Investments - Financial Portal

Trading Statement

Published: 2022-08-19 17:35:13 ET

AVENG LIMITED

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

TRADING STATEMENT
In accordance with paragraph 3.4 (b) of the JSE Listings Requirements, issuers are 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.

Aveng expects revenue to increase whilst earnings before non-recurring items (“operating earnings”) will improve to
between R566 million and R588 million (2021: R536 million).

Earnings and headline earnings in the prior period included significant non-recurring gains of R868 million. Consequently,
earnings and headline earnings are expected to decrease in the current period. Headline earnings are expected to include
an additional R155 million depreciation charge in the current year, recognised on the reclassification of Trident Steel as a
continuing operation. The prior year comparative headline earnings included a R486 million gain on the early settlement of
borrowings. Consequently, headline earnings are expected to decrease in the current period. Earnings and headline
earnings are set out in the expected earnings table below.

In evaluating Company performance, the management excludes non-recurring items. Such non-recurring items are either
income or expenses that do not occur regularly as part of the normal activities of the Group and arise as a result of the
capital restructure of the Group, IFRS 5 adjustments and adjustments in respect of non-core assets. Expected normalised
earnings are adjusted for the effects of non-recurring items and are set out in the expected normalised earnings table
below.



Expected earnings for the period

The Group advises that it expects the results for the year ended 30 June 2022 to fall within the following ranges:
                                                               Expected                             Reported Earnings
                                                                Earnings
                                                        year ended 30 June 2022                 year ended 30 June 2021
                                                               ZAR'm                     % change                       ZAR'm
  Earnings for the period                                     142 – 114                  (86) – (88)                      988
  Headline earnings                                           334 – 302                  (56) – (60)                      751
                                                                Cents                        %                      Cents (restated*)
  Basic earnings per share                                    110 – 95                   (92) – (93)                     1 337
  Headline earnings per share                                 261 – 226                  (74) – (78)                     1 016
  Diluted earnings per share                                  109 – 86                   (91) – (93)                     1 221
  Diluted headline earnings per share                         246 – 214                  (73) – (77)                      928
*During the financial year, the Group’s authorised and issued share capital was restructured, on 8 December 2021, with every 500 shares
consolidated into 1 share. As a result of the corporate action, the prior period weighted and diluted weighted average number of shares in issue
have been restated from 36 960 million and 40 448 million shares to 73,9 million and 80,9 million shares respectively. Consequently, the prior
year earnings and headline earnings have been restated.


Expected normalised earnings for the period
The term normalised refers to performance measures (earnings for the year 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 year ended 30 June 2022 to fall within the following
ranges:
                                                        Expected Normalised                   Normalised Earnings
                                                              Earnings
                                                      year ended 30 June 2022               year ended 30 June 2021
                                                      ZAR'm                 % change                   ZAR'm
 Normalised earnings for the period                  206 – 195              212 – 195                     66
                                                       Cents                    %                  Cents (restated*)
 Normalised basic earnings per share                 171 – 157                92 – 76                     89
 Normalised diluted earnings per share               162 – 148               100 – 83                     81



The Group expects to release its audited results on or about 23 August 2022. The financial information on which this
trading statement is based has not been reviewed or audited by the Group’s auditors.


19 August 2022
Melrose Arch
JSE Sponsor
Investec Bank Limited


Itumeleng Lepere
Stakeholder Engagement Lead
Tel: 011 779 2800
Email: investor.relations@avenggroup.com

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.