JSE-listed Aveng posted a decrease in group earnings and headline earnings for the six months to December 31 2021 due to the reclassification of Trident Steel, which the company is selling, as a continuing operation after being discontinued previously.
The sale of Trident Steel is expected to be completed within the next 12 months, and the business is reportedly performing well and expected to generate sufficient cash to contribute to debt repayment.
Aveng said the criteria to disclose Trident Steel as a “held for sale” asset were not met at the end of December following a technical valuation resulting in Trident Steel being reclassified as a continuing operation in the current period.
However, the reclassification and related non-cash charges and gains did not impact the trading activities or cash flow of Trident Steel.
Aveng is an infrastructure, resources and contract mining group, operating in selected markets and capitalising on the expertise and experience within assets McConnell Dowell and Moolmans.
In a Sens announcement released on Monday evening, Aveng said earnings for the period fell to R53m from R438m in the same period in 2020, while headline earnings per share fell to 14c per share (R17m) from 226c per share (R109m).
The company said tough trading conditions continue due to the effects of the Covid-19 pandemic. In SA, the July 2021 riots, steel industry strike and a global shortage of semiconductors affecting the automotive sector contributed to the group’s performance.
During the period, the group sold Automation & Control Solution (ACS) and the Infraset Effingham factory for a combined value of R89m.
Aveng’s share price closed 4.83% lower at R20.70.
Correction: February 22 2022
An earlier version of this article mistakenly said headline earnings per share fell by 14c in the period, when it fell to 14c.
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