Engineering and construction group Aveng has dipped into the red as the slowdown in infrastructure activity in Australia and New Zealand weighed on its earnings.
The group reported a headline loss of A$84.6m (R975m) for the year ended June after headline earnings of A$38m (R466m) a year ago. This translated into a headline loss per share of A$64.6c (R7.44) from earnings of A$29.6c (R3.64) before.
Revenue slipped to A$2.6bn (R31bn) from A$3.1bn (R37.5bn) a year ago.
The group said heavy losses of A$98.5m on two troubled projects — the Jurong Region Line (J108) in Southeast Asia and the Kidston Pumped Storage Hydro project in Australia — weighed on profits.
Aveng reported an operating loss before capital items of A$60.4m due to setbacks on Kidston and J108.It said while additional forecast costs to complete had been recognised in the current year, the cash flow impact would largely materialise over the next 12 months as those projects moved towards completion.
The rest of the infrastructure segment remained profitable and building delivered strong results. However mining was held back by inefficiencies and unresolved contract issues, it said.
The group said its healthy cash balance in the infrastructure and building segments, backed by ongoing profitability and strong cash generation across its project portfolio, would cover the expected outflows and position it to navigate the final stages of the projects with confidence.
The group held cash of A$267.3m at the end of June, up from A$227.7m a year earlier.
On the upside, the group entered the 2026 financial year with combined work in hand of A$3.2bn, slightly higher than A$3.1bn in June 2024.
CEO Scott Cummins said the group’s segmental strategies were strongly aligned with current market trends, with improving trading conditions continuing across the infrastructure and building segments.
“Our immediate priorities include completing the J108 and Kidston projects in line with the current plan and finalising commercial matters with the respective clients,” Cummins said
He added that the group would also focus on continuing to improve the performance across the remainder of the project portfolio and securing new work in infrastructure, while maintaining growth and profitability in the building segment.
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