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Trading Statement
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
Date: 19-08-2022 04:34:00
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