JOHANNESBURG – Construction Group Aveng has new optimism as its Australian subsidiary McConnell Dowell added A$535 million (R5.45 billion) in the period after June 30 to an already growing order book, securing about 90 percent of budgeted revenues.
Its re-christened mining operations, Moolmans, sealed a further contract extension at the Nkomati mine in Mpumalanga in the same period, also securing 90 percent of the budgeted revenues.
This as its disposal of Grinaker-LTA Mechanical and Electrical business to the Laula Consortium contributed R72m to the war chest in the period after June, helping its liquidity position amid the continued slump in which local construction companies are battling a weak economy and a pull-back in infrastructure spending by the government and private sector.
On the Australian front, the two-year order book has seen a 26 percent increase to A$1.45bn on projects including the Mordialloc Bypass (Australia), Echuca-Moama Bridge (Australia), Westland Milk Bypass (New Zealand), and the built environs of the Modbury Hospital.
In an update on its business performance released on the Johannesburg Stock Exchange, Aveng said these significant awards have also meant that good progress has been made towards securing orders to meet the budgeted revenue beyond the current financial year.