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AVENG LIMITED - Unaudited interim condensed consolidated financial statements for the six months ended 31 December 2014

Release Date: 17/02/2015 07:05
Code(s): AEG     PDF:  
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Unaudited interim condensed consolidated financial statements for the six months ended 31 December 2014

Aveng Group
1944/018119/06
Share codes
JSE: AEG
ISIN: ZAE 000111829
Unaudited interim condensed consolidated financial statements 
for the six months ended 31 December 2014

Salient features
Financial performance

During the six months period ended 31 December 2014:                                                          
Revenue                         R23,9 billion                                         
                                Decrease of 14% from R27,7 billion at December 2013   
Net operating earnings          R413 million                                          
                                Decrease of 19% from R510 million at December 2013    
Profit on sale of subsidiary    R777 million                                          
Earnings for the period         R362 million profit                                   
                                December 2013: R313 million profit                    
Headline earnings               R138 million                                    
                                Decrease of 55% from R307 million at December 2013    
Operating free cash flow        R220 million inflow                                   
                                December 2013: R178 million outflow                   
Earnings per share              89,3 cents                                            
                                Increase of 6% from 83,9 cents at December 2013                                      
Headline earnings per share     34,5 cents                                            
                                Decrease of 58% from 82,1 cents at December 2013                                                                                            

Net operating earnings - segmental analysis                                                           
                                        H1            H1                 H2       % Change   
                                       2015         2014    Change     2014       H1 2015/    
                                         Rm           Rm         %       Rm        H2 2014   
                                                                                             
South Africa and rest of Africa*       (229)        (202)      (13)    (232)             1   
Australasia and Asia                    183          191        (4)      80           >100   
Total Construction and Engineering      (46)         (11)     (318)    (152)            70   
Mining                                  241          295       (18)     234              3   
Manufacturing and Processing             79          162       (51)     202            (61)  
Other and Eliminations*                 139           64       117        5           >100   
Total                                   413          510       (19)     289             43   
* Effective 1 July 2014, the results of Aveng Capital Partners have been reallocated from Other and Eliminations
segment to the Construction and Engineering: South Africa and rest of Africa segment to more accurately reflect the synergies
with Aveng Grinaker-LTA and Aveng Engineering. Comparatives have been adjusted accordingly.


Interim condensed consolidated statement of financial position
as at 31 December 2014
                                                           31 December    31 December        30 June     
                                                                  2014           2013           2014        
                                                            (Unaudited)    (Unaudited)      (Audited)   
                                                   Note             Rm             Rm             Rm                                                                                                             
ASSETS                                                                                               
Non-current assets                                                                                   
Investment property*                                                 -             78             86          
Goodwill arising on consolidation                     7            351          1 443            663         
Intangible assets                                     7            298            222            321         
Property, plant and equipment                         7          5 825          6 864          6 346       
Equity-accounted investments                          8            263            219            306         
Infrastructure investments                            9            633              -              -           
Available-for-sale investments                                       -             72            190         
Deferred taxation                                                1 383          1 379          1 403       
Derivative instruments*                                              8              -             **          
Amounts due from contract customers*                 10          3 192          3 431          2 946       
                                                                11 953         13 708         12 261      
Current assets                                                                                            
Inventories                                                      3 056          2 903          2 793       
Derivative instruments*                                             46             28              1           
Amounts due from contract customers*                 10          6 906          5 822          8 405       
Trade and other receivables*                                     2 433          2 999          2 785       
Cash and bank balances*                                          4 256          5 246          4 136       
                                                                16 697         16 998         18 120      
Non-current assets held-for-sale                     11            607              -            607         
TOTAL ASSETS                                                    29 257         30 706         30 988      
EQUITY AND LIABILITIES                                                                                    
EQUITY                                                                                                    
Share capital and share premium                                  2 001          1 388          2 008       
Other reserves*                                                  1 279            941          1 220       
Retained earnings*                                              10 515         11 473         10 157      
Equity attributable to equity-holders of parent                 13 795         13 802         13 385      
Non-controlling interest                                            14             10             11          
TOTAL EQUITY                                                    13 809         13 812         13 396      
LIABILITIES                                                                                              
Non-current liabilities                                                                                   
Deferred taxation*                                                 234            386            257         
Borrowings and other liabilities                     12          2 158          1 738          2 303       
Payables other than contract-related*                                -             87            102         
Employee-related payables*                                         126            743            682         
Derivative instruments*                                              -              -              3           
Trade and other payables                                           297              -              -           
                                                                 2 815          2 954          3 347       
Current liabilities                                                                                       
Amounts due to contract customers                    10          2 353          2 352          2 677       
Borrowings and other liabilities                     12            416            830            564         
Payables other than contract-related*                               98            102             95          
Employee-related payables*                                       1 081            703            893         
Derivative instruments*                                              3              -             60          
Trade and other payables*                                        8 416          9 402          9 743       
Taxation payable                                                   266            181            213         
Bank overdrafts*                                                     -            370              -           
                                                                12 633         13 940         14 245      
TOTAL LIABILITIES                                               15 448         16 894         17 592      
TOTAL EQUITY AND LIABILITIES                                    29 257         30 706         30 988      
*  Comparatives have been amended as detailed in note 3: New accounting standards and interpretations 
adopted, changes in accounting policies and other reclassifications.                                                      
** Amount less than R1 million.                                                       


Interim condensed consolidated statement of comprehensive earnings
for the six months ended 31 December 2014
                                                                  Six months       Six months                  
                                                                       ended            ended                Year ended 
                                                                 31 December      31 December                   30 June             
                                                                        2014             2013                      2014 
                                                                  (Unaudited)      (Unaudited)          %      (Audited)               
                                                         Note             Rm               Rm      change            Rm                                                                                                                                      
Revenue                                                               23 864           27 654         (14)       52 959   
Cost of sales*                                                       (22 304)         (25 781)         13       (49 324)  
Gross earnings*                                                        1 560            1 873         (17)        3 635   
Other earnings*                                                          319              202          58           302   
Operating expenses*                                                   (1 496)          (1 609)          7        (3 171)  
Earnings from equity-accounted investments                  8             30               44         (32)           33   
Net operating earnings*                                                  413              510         (19)          799   
Impairment of property, plant and equipment 
and intangible assets*                                      7           (246)               -       (>100)          (15)  
Impairment of goodwill arising on consolidation*            7           (291)               -       (>100)         (816)  
Profit on sale of subsidiary                                5            777                -        >100             -   
Earnings/(loss) before financing transactions*                           653              510          28           (32)  
Finance earnings                                                          72               57          26           136   
Accrual of coupon interest for convertible bonds           12            (64)               -       (>100)            -   
Accretion of convertible bond liability due to 
transaction costs                                          12             (3)               -       (>100)            -   
Accretion of convertible bond liability due to 
separation of option component                             12            (28)               -       (>100)            -   
Fair value adjustment on convertible bonds 
conversion option                                          12             36                -       (>100)            -   
Other finance expenses                                                  (179)            (140)        (28)         (319)  
Earnings/(loss) before taxation*                                         487              427          14          (215)  
Taxation*                                                  13           (125)            (114)        (10)         (161)  
EARNINGS/(LOSS) FOR THE PERIOD*                                          362              313          16          (376)  
Earnings/(loss) for the period attributable to:                                                                         
Equity-holders of the parent*                                            358              314          14          (381)  
Non-controlling interest                                                   4               (1)       >100             5   
                                                                         362              313          16          (376)                                                                                                                            
Earnings/(loss) for the period                                           362              313          16          (376)  
brought forward*                                                                                                          
Other comprehensive earnings                                                                                              
Exchange differences on translating 
foreign operations                                                      (255)             192       (>100)          402   
Recycling of exchange differences on sale                               (111)               -       (>100)            -   
of subsidiary                                                                                                             
Available-for-sale fair value reserve                                      -                -           -            93   
Other comprehensive loss released/(raised) 
from equity-accounted investments                           8             28                -        >100           (28)  
Other comprehensive (loss)/earnings                                     (338)             192        >100           467   
for the period, net of taxation*                                                                                          
Total comprehensive earnings                                              24              505         (95)           91   
for the period*                                                                                                           
Total comprehensive earnings                                                                                              
for the period attributable to:                                                                                           
Equity-holders of the parent*                                             20              506         (96)           86   
Non-controlling interests                                                  4               (1)       >100             5   
                                                                          24              505         (95)           91   
Other comprehensive earnings                                                                                              
for the period attributable to:                                                                                           
Equity-holders of the parent*                                           (338)             192       (>100)          467   
Results per share (cents)*                                                                                                
Earnings/(loss) - basic                                    15           89,3             83,9           6        (101,9)  
Earnings/(loss) - diluted                                  15           89,0             78,0          14         (94,8)  
Number of shares (millions)                                                                                               
In issue                                                               416,7            389,8           -         416,7   
Weighted average                                           15          400,6            373,9           -         374,0   
Diluted weighted average                                   15          402,1            402,1           -         402,1   
EBITDA for the Group being net operating earnings before depreciation and amortisation is R928 million                                                                      
(December 2013: R1 094 million; June 2014: R1 708 million).                                                                                       
* Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
in accounting policies and other reclassifications.                                                                                                                                                      


Interim condensed consolidated statement of cash flows
for the six months ended 31 December 2014
                                                                        Six months      Six months      
                                                                             ended           ended     Year ended    
                                                                       31 December     31 December        30 June   
                                                                              2014            2013           2014     
                                                                        (Unaudited)     (Unaudited)      (Audited)  
                                                               Note             Rm              Rm             Rm                                                                                                                                                          
Operating activities                                                                                                
Cash retained / (utilised) from operations                                     589             425            (98)  
Depreciation                                                                   501             564            881   
Amortisation                                                                    14              20             28   
Non-cash and other movements                                     16           (418)           (141)           549   
Cash generated by operations*                                                  686             868          1 360   
Changes in working capital:*                                                                                        
Increase in inventories                                                       (279)           (123)           (13)  
Decrease/(increase) in amounts due from contract customers                     743               4         (2 094)  
Decrease/(increase) in trade and other receivables                             362            (226)           (12)  
(Decrease)/increase in amounts due to contract customers                      (252)            (15)           310   
(Decrease)/increase in trade and other payables                             (1 204)            352            693   
(Decrease)/increase in derivative instruments                                 (103)            (28)            62   
Decrease in payables other than contract-related                              (102)            (94)          (102)  
Decrease in employee-related payables                                         (187)           (224)          (106)  
Total changes in working capital                                            (1 022)           (354)        (1 262)  
Cash (utilised)/generated by operating activities                             (336)            514             98   
Finance expenses paid                                                         (176)           (140)          (283)  
Finance earnings received                                                       72              57            127   
Taxation paid                                                                 (134)           (107)          (252)  
Cash (outflow)/inflow from operating activities                               (574)            324           (310)  
Investing activities                                                                                                
Property, plant and equipment purchased                                                                             
- expansion                                                                   (101)           (271)          (384)  
- replacement                                                                 (456)           (320)          (677)  
Proceeds on sale of property, plant and equipment                              242             144            256   
Proceeds on disposal of investment property                                     97               -              -   
Acquisition of intangible assets                                               (26)            (58)          (176)  
Capital expenditure net of proceeds on disposal                               (244)           (505)          (981)  
Loans advanced to equity-accounted investments 
net of dividends received                                         8            (88)            (31)          (140)  
Loans advanced to infrastructure investment companies             9           (165)              -              -   
Acquisition of subsidiary                                         4            (23)              -              -   
Net proceeds on disposal of subsidiary                            5          1 314               -              -   
Dividend earnings                                                                -              34             33   
Cash inflow/(outflow) from investing activities                                794            (502)        (1 088)  
Operating free cash inflow/outflow                                             220            (178)        (1 398)                                  
Operating free cash inflow/(outflow) brought forward                           220            (178)        (1 398)  
Financing activities with equity-holders                                                                            
Shares repurchased                                                              (7)              -             (7)  
Dividends paid                                                                  (2)              -             (6)  
Financing activities with debt-holders                                                                              
Proceeds from convertible bonds                                  12          1 947               -              -   
(Repayment)/proceeds from borrowings raised                                 (1 900)          1 037          1 336   
Net increase/(decrease) in cash and bank balances 
before foreign exchange movements                                              258             859            (75)  
Foreign exchange movements on cash and bank balances                          (138)            124            314   
Cash and bank balances at beginning of the period*                           4 136           3 893          3 897   
Total cash and bank balances at end of the period                            4 256           4 876          4 136   
Borrowings excluding bank overdrafts*                                        2 574           2 568          2 867   
Net cash position*                                                           1 682           2 308          1 269   
* Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
in accounting policies and other reclassifications.                                                          


Interim condensed consolidated statement of changes in equity
for the six months ended 31 December 2014
                                                                                                                          
                                                                                                               Available- 
                                                                                      Total        Foreign      for-sale  
                                                                                      share       currency          fair  
                                                           Share       Share    capital and    translation         value  
                                                         capital     premium        premium        reserve       reserve  
                                                              Rm          Rm             Rm             Rm            Rm                                                                                                                                                                                                                                                                              
Six months ended 31 December 2013 (Unaudited)                                                                             
Opening balance as previously reported                        19       1 369          1 388            727             -  
Adoption of new IFRS 10 accounting standard                   
(refer to note 3)                                              -           -              -              -             -                                                                                                                                                               
Balance at 1 July 2013 as restated                            19       1 369          1 388            727             -  
Earnings for the period                                        -           -              -              -             -  
Other comprehensive earnings for the period                     
(net of taxation)                                              -           -              -            192             -                                                                                                                                                             
Total comprehensive earnings for the period                    -           -              -            192             -  
Equity-settled share-based payment charge                      -           -              -              -             -  
Acquisition of non-controlling interests                       -           -              -              -             -  
Total contributions and distributions recognised               -           -              -              -             -  
Balance at 31 December 2013                                   19       1 369          1 388            919             -  
Year ended 30 June 2014 (Audited)                                                                                         
Balance at 1 July 2013                                        19       1 369          1 388            727             -  
Loss for the period                                            -           -              -              -             -  
Other comprehensive earnings/(loss) for the period           
(net of taxation)                                              -           -              -            402            93                                                                                                                                                              
Total comprehensive earnings/(loss) for the period             -           -              -            402            93  
Movement in treasury shares                                    -          (1)            (1)             -             -  
Equity-settled share-based payment charge                      -           -              -              -             -  
Issue of shares to BEE consortium                              1         620            621              -             -  
Dividends paid                                                 -           -              -              -             -  
Total contributions and distributions recognised               1         619            620              -             -  
Balance at 30 June 2014                                       20       1 988          2 008          1 129            93  
Six months ended 31 December 2014 (Unaudited)                                                                             
Balance at 1 July 2014                                        20       1 988          2 008          1 129            93  
Earnings for the period                                        -           -              -              -             -  
Other comprehensive earnings/(loss) for                                                                                 
the period (net of taxation)                                   -           -              -           (366)            -  
Total comprehensive earnings/(loss)                          
for the period                                                 -           -              -           (366)            -                                                                                                                                                              
Movement in treasury shares                                    -          (7)            (7)             -             -  
Equity-settled share-based payment charge                      -           -              -              -             -  
Transfer of convertible bond option to convertible             
bond equity reserve                                            -           -              -              -             -                                                                                                                                                              
Deferred transaction costs allocated to convertible                                                                       
bond equity reserve                                            -           -              -              -             -  
Foreign currency translation movement                          -           -              -              -             -  
Dividends paid                                                 -           -              -              -             -  
Total contributions and distributions recognised               -          (7)            (7)             -             -  
Balance at 31 December 2014                                   20       1 981          2 001            763            93  
* Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
in accounting policies and other reclassifications.                                                                                                                                                                                                            


Interim condensed consolidated statement of changes in equity
for the six months ended 31 December 2014 (continued)
                                                                        Equity-                                            
                                                                       settled                                             
                                                            Equity-      share-                 Convertible                
                                                         accounted       based                         bond         Total    
                                                       investments     payment     Insurance         equity         other                         
                                                           reserve     reserve       reserve*       reserve      reserves*                         
                                                                Rm          Rm            Rm             Rm            Rm                                                                                                                                                                                                                                                                                                        
Six months ended 31 December 2013 (Unaudited)                                                                              
Opening balance as previously reported                           -          21            54              -           802  
Adoption of new IFRS 10 accounting standard          
(refer to note 3)                                                -           -           (54)             -           (54)                                                                                                                                                                                        
Balance at 1 July 2013 as restated                               -          21             -              -           748  
Earnings for the period                                          -           -             -              -             -  
Other comprehensive earnings for the period          
(net of taxation)                                                -           -             -              -           192                                                                                                                                                                                       
Total comprehensive earnings for the period                      -           -             -              -           192  
Equity-settled share-based payment charge                        -           1             -              -             1  
Acquisition of non-controlling interests                         -           -             -              -             -  
Total contributions and distributions recognised                 -           1             -              -             1  
Balance at 31 December 2013                                      -          22             -              -           941  
Year ended 30 June 2014 (Audited)                                                                                          
Balance at 1 July 2013                                           -          21             -              -           748  
Loss for the period                                              -           -             -              -             -  
Other comprehensive earnings/(loss) for the period 
(net of taxation)                                              (28)          -             -              -           467                                                                                                                                                                                        
Total comprehensive earnings/(loss) for the period             (28)          -             -              -           467  
Movement in treasury shares                                      -           -             -              -             -  
Equity-settled share-based payment charge                        -           5             -              -             5  
Issue of shares to BEE consortium                                -           -             -              -             -  
Dividends paid                                                   -           -             -              -             -  
Total contributions and distributions recognised                 -           5             -              -             5  
Balance at 30 June 2014                                        (28)         26             -              -         1 220  
Six months ended 31 December 2014 (Unaudited)                                                                              
Balance at 1 July 2014                                         (28)         26             -              -         1 220  
Earnings for the period                                          -           -             -              -             -  
Other comprehensive earnings/(loss) for                                                                                  
the period (net of taxation)                                    28           -             -              -          (338) 
Total comprehensive earnings/(loss)                
for the period                                                  28           -             -              -          (338)                                                                                                                                                                                       
Movement in treasury shares                                      -           -             -              -             -  
Equity-settled share-based payment charge                        -           7             -              -             7  
Transfer of convertible bond option to convertible   
bond equity reserve                                              -           -             -            402           402                                                                                                                                                                                        
Deferred transaction costs allocated to convertible                                                                        
bond equity reserve                                              -           -             -            (12)          (12) 
Foreign currency translation movement                            -           -             -              -             -  
Dividends paid                                                   -           -             -              -             -  
Total contributions and distributions recognised                 -           7             -            390           397  
Balance at 31 December 2014                                      -          33             -            390         1 279  
* Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
in accounting policies and other reclassifications.                                                                              


Interim condensed consolidated statement of changes in equity
for the six months ended 31 December 2014 (continued)
                                                                             Total  
                                                                      attributable    
                                                                         to equity   
                                                                           holders           Non-                
                                                           Retained         of the   controlling      Total                           
                                                           earnings*        parent*     interest     equity*                           
                                                                 Rm             Rm            Rm         Rm                                                                                                                                                                                                                                                                                                          
Six months ended 31 December 2013 (Unaudited)                                                                 
Opening balance as previously reported                       11 103         13 293            12     13 305   
Adoption of new IFRS 10 accounting standard              
(refer to note 3)                                                56              2             -          2                                                                                                                                                                                           
Balance at 1 July 2013 as restated                           11 159         13 295            12     13 307   
Earnings for the period                                         314            314            (1)       313   
Other comprehensive earnings for the period              
(net of taxation)                                                 -            192             -        192                                                                                                                                                                                         
Total comprehensive earnings for the period                     314            506            (1)       505   
Equity-settled share-based payment charge                         -              1             -          1   
Acquisition of non-controlling interests                          -              -            (1)        (1)  
Total contributions and distributions recognised                  -              1            (1)         -   
Balance at 31 December 2013                                  11 473         13 802            10     13 812   
Year ended 30 June 2014 (Audited)                                                                             
Balance at 1 July 2013                                       11 159         13 295            12     13 307   
Loss for the period                                            (381)          (381)            5       (376)  
Other comprehensive earnings/(loss) for the period     
(net of taxation)                                                 -            467             -        467                                                                                                                                                                                          
Total comprehensive earnings/(loss) for the period             (381)            86             5         91   
Movement in treasury shares                                       -             (1)            -         (1)  
Equity-settled share-based payment charge                         -              5             -          5   
Issue of shares to BEE consortium                              (621)             -             -          -   
Dividends paid                                                    -              -            (6)        (6)  
Total contributions and distributions recognised               (621)             4            (6)        (2)  
Balance at 30 June 2014                                      10 157         13 385            11     13 396   
Six months ended 31 December 2014 (Unaudited)                                                                 
Balance at 1 July 2014                                       10 157         13 385            11     13 396   
Earnings for the period                                         358            358             4        362   
Other comprehensive earnings/(loss) for                                           
the period (net of taxation)                                      -           (338)            -       (338)  
Total comprehensive earnings/(loss)                    
for the period                                                  358             20             4         24                                                                                                                                                                                          
Movement in treasury shares                                       -             (7)            -         (7)  
Equity-settled share-based payment charge                         -              7             -          7   
Transfer of convertible bond option to convertible       
bond equity reserve                                               -            402             -        402                                                                                                                                                                                          
Deferred transaction costs allocated to convertible                                 
bond equity reserve                                               -            (12)            -        (12)  
Foreign currency translation movement                             -              -             1          1   
Dividends paid                                                    -              -            (2)        (2)  
Total contributions and distributions recognised                  -            390            (1)       389   
Balance at 31 December 2014                                  10 515         13 795            14     13 809   
* Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
in accounting policies and other reclassifications.                                                                              


Interim condensed consolidated statement of adjusted earnings
for the six months ended 31 December 2014
                                                            Six months ended 31 December 2014 (unaudited)                            
                                                                   Adjusted    Special                        
                                                                   earnings      items       Total            
                                                       Note              Rm         Rm          Rm                                                                                                                                                                                            
Revenue                                                 1.1          22 503     (1 361)     23 864            
Cost of sales                                           1.1         (21 036)     1 268     (22 304)           
Gross earnings                                                        1 467        (93)      1 560            
Other earnings                                                          319          -         319            
Operating expenses                                      1.1          (1 467)        29      (1 496)           
Earnings from equity-accounted investments                               30          -          30            
Net operating earnings                                                  349        (64)        413            
Impairment of property, plant and equipment                      
and intangible assets                                   1.2               -        246        (246)           
Impairment of goodwill arising on consolidation         1.3               -        291        (291)           
Profit on the sale of subsidiary                        1.4               -       (777)        777            
Earnings before financing transactions                                  349       (304)        653            
Finance earnings                                                         72          -          72            
Accrual of coupon interest for convertible bonds                        (64)         -         (64)           
Accretion of convertible bond liability due to                   
transaction costs                                       1.5               -          3          (3)           
Accretion of convertible bond liability due to                   
separation of option component                          1.5               -         28         (28)           
Fair value adjustment on convertible bond                        
conversion option                                       1.5              36          -          36            
Other finance expenses                                  1.1            (175)         4        (179)           
Earnings/(loss) before taxation                                         218       (269)        487            
Taxation                                                1.6               -        125        (125)           
Earnings/(loss) for the period                                          218       (144)        362            
Earnings/(loss) attributable to:                                                                            
Equity-holders of the parent                                            214       (144)        358            
Non-controlling interest                                                  4          -           4            
                                                                        218       (144)        362            
Earnings per share - basic (cents)                                     53,3                   89,3            
Earnings per share - diluted (cents)                                   53,1                   89,0            


Interim condensed consolidated statement of adjusted earnings
for the six months ended 31 December 2014 (continued)
                                                      Six months ended 31 December 2013 (unaudited)                           
                                                            Adjusted    Special                  
                                                            earnings      items       Total      
                                                                  Rm         Rm          Rm                                                                                                                                                                                       
Revenue                                                       25 822     (1 832)     27 654      
Cost of sales                                                (24 072)     1 709     (25 781)     
Gross earnings                                                 1 750       (123)      1 873      
Other earnings                                                   202          -         202      
Operating expenses                                            (1 564)        45      (1 609)     
Earnings from equity-accounted investments                        44          -          44      
Net operating earnings                                           432        (78)        510      
Impairment of property, plant and equipment             
and intangible assets                                              -          -           -      
Impairment of goodwill arising on consolidation                    -          -           -      
Profit on the sale of subsidiary                                   -          -           -      
Earnings before financing transactions                           432        (78)        510      
Finance earnings                                                  56         (1)         57      
Accrual of coupon interest for convertible bonds                   -          -           -      
Accretion of convertible bond liability due to          
transaction costs                                                  -          -           -      
Accretion of convertible bond liability due to          
separation of option component                                     -          -           -      
Fair value adjustment on convertible bond               
conversion option                                                  -          -           -      
Other finance expenses                                          (140)         -        (140)     
Earnings/(loss) before taxation                                  348        (79)        427      
Taxation                                                         (91)        23        (114)     
Earnings/(loss) for the period                                   257        (56)        313      
Earnings/(loss) attributable to:                                                               
Equity-holders of the parent                                     258        (56)        314      
Non-controlling interest                                          (1)         -          (1)     
                                                                 257        (56)        313      
Earnings per share - basic (cents)                              69,0                   83,9      
Earnings per share - diluted (cents)                            64,2                   78,0      


Interim condensed consolidated statement of adjusted earnings
for the six months ended 31 December 2014 (continued)
                                                         Year ended 30 June 2014 (unaudited)                           
                                                          Adjusted    Special     (Audited)  
                                                          earnings      items        Total   
                                                                Rm         Rm           Rm                                                                                                                                                                                    
Revenue                                                     49 197     (3 762)      52 959   
Cost of sales                                              (45 814)     3 510      (49 324)  
Gross earnings                                               3 383       (252)       3 635   
Other earnings                                                 302          -          302   
Operating expenses                                          (3 079)        92      (3 171)   
Earnings from equity-accounted investments                      33          -           33   
Net operating earnings                                         639       (160)         799   
Impairment of property, plant and equipment 
and intangible assets                                            -         15          (15)  
Impairment of goodwill arising on consolidation                  -        816         (816)  
Profit on the sale of subsidiary                                 -          -            -   
Earnings before financing transactions                         639        671          (32)  
Finance earnings                                               134         (2)         136   
Accrual of coupon interest for convertible bonds                 -          -            -   
Accretion of convertible bond liability due to 
transaction costs                                                -          -            -   
Accretion of convertible bond liability due to 
separation of option component                                   -          -            -   
Fair value adjustment on convertible bond 
conversion option                                                -          -            -   
Other finance expenses                                        (319)         -         (319)  
Earnings/(loss) before taxation                                454        669         (215)  
Taxation                                                      (114)        47         (161)  
Earnings/(loss) for the period                                 340        716         (376)  
Earnings/(loss) attributable to:                                                           
Equity-holders of the parent                                   335        716         (381)  
Non-controlling interest                                         5          -            5   
                                                               340        716         (376)  
Earnings per share - basic (cents)                            89,7                  (101,9)  
Earnings per share - diluted (cents)                          83,4                   (94,8)  


1.1 Results of Electrix disposed of effective 31 October 2014 have been excluded from adjusted 
    earnings in all periods. Electrix was not considered to be an operating segment nor a separate 
    major line of business or geographical area, therefore the sale of this entity does not give 
    rise to a discontinued operation but rather a disposal group.                                                                                                                                 
1.2 For the six months ended 31 December 2014, a R246 million impairment of property, plant and 
    equipment and intangible assets was recognised. A R15 million impairment of intangible assets 
    was recognised for the financial year ended 30 June 2014.                                                                                                                                 
1.3 Goodwill in respect of Built Environs to the value of R291 million was impaired for the 
    six-month period ended 31 December 2014. A R816 million impairment of goodwill was recognised 
    for the financial year ended 30 June 2014.                                                                                                                                 
1.4 A profit of R777 million before taxation arose on the sale of the Group’s 100% investment in 
    Electrix.                                                                                                                                  
1.5 On 23 July 2014 the Group issued convertible bonds that were recognised as containing separate 
    liability and equity components in accordance with IAS 32 Financial Instruments: Presentation. 
    In so far as the annual interest charge relates to the accretion of the liability from 
    R1 562 million (that is, the issue of R2 000 million less the initial value of the option 
    component being R438 million) to R2 000 million, this accretion has been excluded from adjusted 
    earnings as it pertains to an IFRS requirement that does not appropriately represent the cash flow 
    effects of the bonds being the coupon interest and transaction costs.                                                                                                                                 
1.6 The taxation of special items include the taxation effects of the above items as well as some 
    specific taxation-only items, as follows:                                                                                                                                 

 Taxation impact                                         Six months      Six months           Year    
                                                              ended           ended          ended    
                                                        31 December     31 December        30 June    
                                                               2014            2013           2014   
                                                         (Unaudited)     (Unaudited)    (Unaudited)                                                                                                                          
1.2 Impairment of property, plant and equipment 
    and intangible assets                                       (49)              -              -   
1.4 Profit on disposal of subsidiary                             64               -              -   
1.5 Accretion of convertible bond liability                      (9)              -              -   
1.6 Taxation on results of subsidiary disposed of 
    during the period                                            19              23             47   
Other taxation:                                                                                     
Non-recognition of deferred taxation asset*                     100               -              -   
                                                                125              23             47   
* From 1 July 2014, an additional deferred taxation asset was not recognised to the extent that assessed 
  losses (arising since 1 July 2014) exceed the reversal of other temporary differences.                                                   


Notes to the interim condensed consolidated financial statements
for the six months ended 31 December 2014

1.    Corporate information                                                                                                                                                                                                                                                          
      The unaudited interim condensed consolidated financial statements of Aveng Limited (the “Company”) 
      and its subsidiaries (the “Group”) for the six months ended 31 December 2014 (the “interim results”) were 
      authorised for issue in accordance with a resolution of the directors on 16 February 2015.                                                                                                                                                                                 
      Nature of business                                                                                                                                                                                                                                                                                   
      Aveng Limited is a limited liability company incorporated and domiciled in the Republic of South Africa whose 
      shares are publicly traded. The Group operates in the construction, engineering and mining environment and as a 
      result the revenue is not seasonal in nature, but is influenced by the nature and execution of the contracts 
      currently in progress.                                                                                                                                                                                                                                                                               
      Business restructuring                                                                                                                                                                                                                                                                               
      Effective from 1 July 2014, management responsibility for Aveng Engineering moved to Aveng Grinaker-LTA. The 
      change in reporting structure enhanced the Group’s competitive advantage in the renewable power and water 
      markets, which is expected to grow over the next few years. There was no change in the segment reports as both 
      operating groups fall within the same reporting segment.                                                                                                                                                                                                                                                
      Changes in directorate                                                                                                                                                                                                                                                                          
      Mr AH Macartney was appointed as Group Finance director effective from 8 September 2014.                                                                                                                                                                                                    
2.    BASIS OF PREPARATION AND ACCOUNTING POLICY                                                                                                                                                                                                                                                      
      The interim results have been prepared on a historical cost basis, except for certain financial instruments 
      and non-financial assets which are measured at fair value.                                                                                                                                                                                                                                 
      These interim results are presented in South African rand (“ZAR”) and all values are rounded to the nearest million 
      (“Rm”) except where otherwise indicated. The interim results are prepared in accordance with IAS 34 Interim Financial 
      Statements and the Listings Requirements of the Johannesburg Stock Exchange. The accounting policies adopted are 
      consistent with those of the previous year as well as the Group’s audited annual financial statements as at 
      30 June 2014, except as disclosed in note 3 and the following new accounting policy:                                                                                                                                                                                                      
      South African infrastructure investments                                                                                                                                                                                                                                                     
      With effect from 1 July 2014, the concessions and property-related activities of the Group were reorganised to fall 
      within Aveng Capital Partners (“ACP”). All future infrastructure and real estate investments will be managed by ACP. 
      This business unit has been determined to be operating as a venture capital organisation, such that the investments 
      managed by ACP have been reclassified as financial assets at fair value through profit or loss. This includes investments 
      in associates and joint ventures that would otherwise have been equity-accounted. The 10,9% investment in the N3 Toll 
      Concession Company, has been retained as an available-for-sale investment as initially designated in terms of IAS 39 
      Financial Instruments. In future such investments will be designated as at fair value through profit or loss upon 
      initial recognition. For the six months ended 31 December 2014, fair value remeasurements of R83 million have been 
      recognised in earnings. These remeasurements have been included in headline earnings.   
                                                                                                              
      ACP is included in the Construction and Engineering: South Africa and rest of Africa segment.                                                                                                                                                                                                    
      The interim results do not include all the information and disclosures required by the annual financial statements and 
      should therefore be read in conjunction with the Group’s audited annual financial statements as at 30 June 2014.                                                                                                                                                                        
      The interim results have been prepared under the supervision of Mr AH Macartney, Group Finance director.                                                                                                                                                                                  
      The interim results comply with IAS 34 - Interim Financial Statements.                                                                                                                                                      
3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS                                                                                                                                                            
                                                                                                        3.3.2       
                                                               Balance                               Employee-      
                                                         as previously      3.1.1            3.2      related         
                                                              reported    IFRS 10    Revaluation     payables                  
                                                Note                Rm         Rm             Rm           Rm                                                                                                                                                                                                                          
      Statement of financial position as at                                                                           
      31 December 2013                                                                                                
      Assets                                                                                                          
      Non-current assets                                                                                              
      Investment property                                           71          -              7            -         
      Amounts due from contract customers         10                 -          -              -            -         
      Current assets                                                                                                  
      Derivative instruments                                         -          -              -            -         
      Amounts due from contract customers         10            10 387          -              -            -         
      Trade and other receivables                                2 920         56              -            -         
      Cash and bank balances                                     5 619        (58)             -            -         
      Equity and liabilities                                                                                          
      Equity                                                                                                          
      Other reserves                                               996        (55)             -            -         
      Retained earnings                                         11 411         56              6            -         
      Liabilities                                                                                                     
      Non-current liabilities                                                                                         
      Payables other than contract-related                       1 166          -              -         (743)        
      Deferred taxation                                            385          -              1            -         
      Employee-related payables                                      -          -              -          743         
      Current liabilities                                                                                             
      Payables other than contract-related                       1 552          -              -         (703)        
      Employee-related payables                                      -          -              -          703         
      Trade and other payables                                   9 405         (3)             -            -         
      Bank overdrafts                                              685          -              -            -         
      Statement of financial position as at                                                                           
      30 June 2014                                                                                                    
      Assets                                                                                                          
      Current assets                                                                                                  
      Derivative instruments                                         -          -              -            -         
      Liabilities                                                                                                     
      Non-current liabilities                                                                                         
      Derivative instruments                                         -          -              -            -         
      Current liabilities                                                                                             
      Derivative instruments                                         -          -              -            -         
      Trade and other payables                                   9 805          -              -            -         


3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)                                                                                                                                                            
                                                        3.3.3       3.3.4                                        3.3.7        
                                                     Contract    Contract           3.3.5                   Derivative       
                                                    provision     balance       Provision         3.3.6    instruments     Restated   
                                                        split       split    reallocation    Offsetting          split      balance            
                                                           Rm          Rm              Rm            Rm             Rm           Rm                                                                                                                                                                                                                    
      Statement of financial position as at                                                                                           
      31 December 2013                                                                                                                
      Assets                                                                                                                          
      Non-current assets                                                                                                              
      Investment property                                   -           -               -             -              -           78   
      Amounts due from contract customers                (747)      4 178               -             -              -        3 431   
      Current assets                                                                                                                  
      Derivative instruments                                -           -               -             -             28           28   
      Amounts due from contract customers                (336)     (4 178)            (51)            -              -        5 822   
      Trade and other receivables                           -           -              51             -            (28)       2 999   
      Cash and bank balances                                -           -               -          (315)             -        5 246   
      Equity and liabilities                                                                                                          
      Equity                                                                                                                          
      Other reserves                                        -           -               -             -              -          941   
      Retained earnings                                     -           -               -             -              -       11 473   
      Liabilities                                                                                                                     
      Non-current liabilities                                                                                                         
      Payables other than contract-related               (336)          -               -             -              -           87   
      Deferred taxation                                     -           -               -             -              -          386   
      Employee-related payables                             -           -               -             -              -          743   
      Current liabilities                                                                                                             
      Payables other than contract-related               (747)          -               -             -              -          102   
      Employee-related payables                             -           -               -             -              -          703   
      Trade and other payables                              -           -               -             -              -        9 402   
      Bank overdrafts                                       -           -               -          (315)             -          370   
      Statement of financial position as at                                                                                           
      30 June 2014                                                                                                                    
      Assets                                                                                                                          
      Current assets                                                                                                                  
      Derivative instruments                                -           -               -             -              1            1   
      Liabilities                                                                                                                     
      Non-current liabilities                                                                                                         
      Derivative instruments                                -           -               -             -              3            3   
      Current liabilities                                                                                                             
      Derivative instruments                                -           -               -             -             60           60   
      Trade and other payables                              -           -               -             -            (62)       9 743 



3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)                                                                                                                                                  
                                                                                  Balance                              3.3.1            3.3.8   
                                                                            as previously            3.2        Reallocation     Reallocation  
                                                                                 reported    Revaluation   of other earnings    of fair value   
                                                                                       Rm             Rm                  Rm               Rm   
                                                                                                                                                
                                                                                                                                                
      Statement of comprehensive earnings for the six months ended                                                                              
      31 December 2013                                                                                                                          
      Cost of sales                                                               (25 681)             -                   -                -   
      Gross earnings                                                                1 973              -                   -                -   
      Other earnings                                                                    3              7                 158                -   
      Operating expenses                                                           (1 551)             -                (158)               -   
      Net operating earnings                                                          469              7                   -                -   
      Share of dividend earnings from available-for-sale investments                   34              -                   -                -   
      Taxation                                                                       (113)            (1)                  -                -   
      Statement of comprehensive earnings for the twelve months ended                                                                           
      30 June 2014                                                                                                                              
      Cost of sales                                                               (49 122)             -                   -                -   
      Gross earnings                                                                3 837              -                   -                -   
      Other earnings                                                                  254              -                   -               15   
      Operating expenses                                                           (3 373)             -                   -                -   
      Share of dividend earnings from available-for-sale investments                   33              -                   -                -   
      Net operating earnings                                                          784              -                   -               15   
      Impairment of non-financial assets                                             (831)             -                   -                -   
      Impairment of property, plant and equipment and intangible assets                 -              -                   -                -   
      Impairment of goodwill arising on consolidation                                   -              -                   -                -   
      Fair value adjustments                                                           15              -                   -              (15)  

      NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)
                                                                                                                      3.3.11
                                                                                   3.3.9         3.3.10         Reallocation          
                                                                             Reallocation       Split of        of operating        Restated  
                                                                             of dividends     impairment            expenses         balance   
                                                                                       Rm             Rm                  Rm              Rm                                                                                                                                                                                                                                                                                           
      Statement of comprehensive earnings for the six months ended                                                                             
      31 December 2013                                                                                                                         
      Cost of sales                                                                     -              -                (100)        (25 781)  
      Gross earnings                                                                    -              -                (100)          1 873   
      Other earnings                                                                   34              -                   -             202   
      Operating expenses                                                                -              -                 100          (1 609)  
      Net operating earnings                                                           34              -                   -             510   
      Share of dividend earnings from available-for-sale investments                  (34)             -                   -               -   
      Taxation                                                                          -              -                   -            (114)  
      Statement of comprehensive earnings for the twelve months ended                                                                          
      30 June 2014                                                                                                                             
      Cost of sales                                                                     -              -                (202)        (49 324)  
      Gross earnings                                                                    -              -                (202)          3 635   
      Other earnings                                                                   33              -                   -             302   
      Operating expenses                                                                -              -                 202          (3 171)  
      Share of dividend earnings from available-for-sale investments                  (33)             -                   -               -   
      Net operating earnings                                                            -              -                   -             799   
      Impairment of non-financial assets                                                -            831                   -               -   
      Impairment of property, plant and equipment and intangible assets                 -            (15)                  -             (15)  
      Impairment of goodwill arising on consolidation                                   -           (816)                  -            (816)  
      Fair value adjustments                                                            -              -                   -               -   
                                                                           

      NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)
                                                                              Balance
                                                                        as previously       Change in                         3.1.1             3.2  
                                                                             reported      definition*        Prior to      IFRS 10     Revaluation  
                                                                                   Rm              Rm      restatement           Rm              Rm                                                                                                                                                   
      Segmental report as at 31 December 2013                                                                                                        
      Total assets                                                                                                                                   
      Construction and Engineering: South Africa and rest of Africa             3 157           2 755           5 912              -              -  
      Construction and Engineering: Australasia and Asia                        8 348           4 498          12 846              -              -  
      Mining                                                                    4 230             819           5 049              -              -  
      Manufacturing and processing                                              5 906             827           6 733              -              -  
      Other and Eliminations                                                    1 504              55           1 559             (2)             7  
                                                                               23 145           8 954          32 099             (2)             7  
      Total liabilities                                                                                                                              
      Construction and Engineering: South Africa and rest of Africa             2 470           1 181           3 651              -              -  
      Construction and Engineering: Australasia and Asia                        7 489             800           8 289              -              -  
      Mining                                                                    1 801             697           2 498              -              -  
      Manufacturing and Processing                                              1 905             320           2 225              -              -  
      Other and Eliminations                                                      810             821           1 631             (2)             -  
                                                                               14 475           3 819          18 294             (2)             -  
      * As described in the audited consolidated annual financial statements as at 30 June 2014, the definition for segment assets and segment liabilities 
        changed to now incorporate all assets and liabilities within each segment.                                                                                                                                          


      NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)
  
         
                                                                            3.3.4                 
                                                                         Contract                        3.3.12         
                                                                          balance         3.3.6         Segment    Restated   
                                                                            split    Offsetting    reallocation     balance            
                                                                               Rm            Rm              Rm          Rm                                                                                                                                                                
     Segmental report as at 31 December 2013                                                                                  
     Total assets                                                                                                             
     Construction and Engineering: South Africa and rest of Africa         (1 032)         (252)            601       5 229   
     Construction and Engineering: Australasia and Asia                       (39)            -               -      12 807   
     Mining                                                                   (12)            -               -       5 037   
     Manufacturing and processing                                               -           (22)              -       6 711   
     Other and Eliminations                                                     -           (41)           (601)        922   
                                                                           (1 083)         (315)              -      30 706   
     Total liabilities                                                                                                        
     Construction and Engineering: South Africa and rest of Africa         (1 032)         (252)             99       2 466   
     Construction and Engineering: Australasia and Asia                       (39)            -               -       8 250   
     Mining                                                                   (12)            -               -       2 486   
     Manufacturing and Processing                                               -           (22)              -       2 203   
     Other and Eliminations                                                     -           (41)            (99)      1 489   
                                                                           (1 083)         (315)              -      16 894   
     * As described in the audited consolidated annual financial statements as at 30 June 2014, the definition for segment assets 
       and segment liabilities changed to now incorporate all assets and liabilities within each segment.                                                                                                                                          


3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)                                                                   
                                                                              Balance                             3.3.12       
                                                                        as previously                3.2         Segment    Restated  
                                                                             reported        Revaluation    reallocation     balance   
                                                                                   Rm                 Rm              Rm          Rm                                                                                                                                            
      Segmental report for the six months ended 31 December 2013                                                                       
      Net operating earnings                                                                                                           
      Construction and Engineering: South Africa and rest of Africa              (334)                 -             132        (202)  
      Construction and Engineering: Australasia and Asia                          191                  -               -         191   
      Mining                                                                      295                  -               -         295   
      Manufacturing and Processing                                                162                  -               -         162   
      Other and Eliminations                                                      189                  7            (132)         64   
                                                                                  503                  7               -         510   
                                                                                                                                       

3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)
                                                                                              3.3.7    
                                                                              Balance    Derivative           3.3.8           3.3.12          
                                                                        as previously   instruments     Reallocation         Segment    Restated   
                                                                             reported         split    of fair value    reallocation     balance    
                                                                                   Rm            Rm               Rm              Rm          Rm                                                                                                                                                                             
      Segmental report as at 30 June 2014                                                                                                          
      Total assets                                                                                                                                 
      Construction and Engineering: South Africa and rest of Africa             4 546             -                -             522       5 068   
      Construction and Engineering: Australasia and Asia                       13 340             -                -               -      13 340   
      Mining                                                                    4 848             -                -               -       4 848   
      Manufacturing and Processing                                              7 029             -                -               -       7 029   
      Other and Eliminations                                                    1 224             1                -            (522)        703   
                                                                               30 987             1                -               -      30 988   
      Total liabilities                                                                                                                            
      Construction and Engineering: South Africa and rest of Africa             2 450             -                -             114       2 564   
      Construction and Engineering: Australasia and Asia                        8 623             -                -               -       8 623   
      Mining                                                                    2 244             -                -               -       2 244   
      Manufacturing and Processing                                              2 589             -                -               -       2 589   
      Other and Eliminations                                                    1 685             1                -            (114)      1 572   
                                                                               17 591             1                -               -      17 592   
      Segmental report for the twelve months ended 30 June 2014                                                                                    
      Net operating earnings                                                                                                                       
      Construction and Engineering: South Africa and rest of Africa              (566)            -                -             132        (434)  
      Construction and Engineering: Australasia and Asia                          271             -                -               -         271   
      Mining                                                                      529             -                -               -         529   
      Manufacturing and Processing                                                364             -                -               -         364   
      Other and Eliminations                                                      186             -               15            (132)         69   
    

3.    NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED, CHANGES IN ACCOUNTING POLICIES AND OTHER RECLASSIFICATIONS (continued)                                                                                                                                                                                                        
3.1    Standards and interpretations effective and adopted in the current year                                                                                                                                                                                                                                                         
       In the current period, the Group has adopted the following standards and interpretations that are 
       effective for the current financial year and that are relevant to its operations. They, however, did not 
       have an impact on the interim results.                                                                                                                                                                                                                                                                                     
       - IFRS 10, IFRS 12 and IAS 27 (amendment) Investment Entities                                                                                                                                                                                                                                                                 
       - IAS 19 (amendment) Defined Benefit Plans: Employee Contributions                                                                                                                                                                                                                                                             
       - IAS 36 (amendment) Recoverable Amount Disclosures for Non-financial Assets                                                                                                                                                                                                                                                   
       - IAS 39 (amendment) Novation of derivatives and Continuation of Hedge Accounting                                                                                                                                                                                                                                             
       - IFRIC 21 Levies                                                                                                                                                                                                                                                                                                        
3.1.1  Deconsolidation of Guardrisk Life Fund (“captive”)                                                                                                                                                                                                                                                                            
       As a result of IFRS 10 Consolidated Financial Statements, which became effective from 1 July 2013, 
       the Group has changed its accounting policy for determining whether it has control over and consequently 
       whether it consolidates its investees. IFRS 10 introduced a new control model that focuses on whether the 
       Group has power over an investee, exposure or rights to variable returns from its involvement with the 
       investee and ability to use its power to affect those returns.                              
                                                                                                                                              
       The Group has deconsolidated the captive, and in terms of the transitional provisions, restated the 
       comparative information.                                                                                                                                                                                                                                                                                                  
3.2    Change in accounting policy - Investment property                                                                                                                                                                                                                                                                            
       During the year ended 30 June 2014, the Group changed its accounting policy on investment property from 
       the cost model to the fair value model. The results at 31 December 2013 have accordingly been restated to 
       reflect this change. A fair value adjustment of R7 million was recognised in respect of the Goldfields Mall 
       property, which was carried as investment property. This investment property was disposed of on 12 December 2014. 
       Deferred capital gains tax amounting to R1 million was also restated.    
                                                                                                                                              
3.3    Other reclassifications affecting comparative figures                                                                                                                                                                                                                                                                     
       As part of the Group’s financial reporting improvement initiatives, the structure, format and presentation of 
       disclosures in the interim results were reviewed. This resulted in the reallocation of certain comparative amounts. 
       This initiative is an ongoing programme targeting the most appropriate disclosure and presentation practices to 
       best serve the interests of the Group’s stakeholders based on interaction with them during the period.                                                                 
                                                                                                                                           
       The resulting reallocations had no impact on the earnings of the Group and as such the reallocations are regarded 
       as not having had a qualitatively significant effect on the information presented.                                                                                                                                                                                                                                        
3.3.1  Other earnings of R158 million in the prior year was reclassified from operating expenses to a separate line item 
       in the statement of comprehensive earnings.                                                                                                                                                                                                                                                                               
3.3.2  Employee-related payables of R1 446 million were reclassified from provisions to a separately disclosed line item. 
       The amount reclassified was also classified according to the maturity profile of its associated risk, R743 million 
       non-current and R703 million as current.                                                                                                                                                                                                                                                                                    
3.3.3  Provisions for amounts due from customers of R1 083 million were reclassified from provisions to amounts due from 
       contract customers to reflect the net risk exposure implicit in uncertified claims and variations in 2013. The 
       amount reclassified was also classified accordingly to the maturity profile of its associated risk, R336 million 
       non-current and R747 million as current.                                                                                                                               
                                                                                                                                               
3.3.4  Uncertified claims and variations of R4 178 million were classified as non-current amounts due from contract 
       customers in 2013 to reflect a more accurate maturity profile.                                                                                                                                                                                                                                                           
3.3.5  Provision for contract receivables of R51 million included in trade and other receivables in 2013 were reclassified 
       to amounts due from contract customers.                                                                                                                                                                        
3.3.6  Notional bank overdrafts of R315 million were offset against cash and bank balances in terms of the amended 
       IAS 32 Financial Instrument: Presentation relating to the offsetting of financial instruments as these balances 
       will be settled against the current accounts.                                                                                                                                                                                                                                                                              
3.3.7  Derivative instruments of R28 million (June 2014: R62 million) were reclassified from trade and other receivables 
       (June 2014: trade and other payables) to a separately disclosed line item.                                                                                                                                                                                                                                                  
3.3.8  Fair value adjustments on investment property of R15 million were combined with other earnings.                                                                                                                                                                                                                               
3.3.9  Share of dividend earnings from available-for-sale investments of R34 million (June 2014:                                                                                            R33 million) was combined with other earnings.                                                                                                                                                                                                                                                                             
3.3.10 Impairment of non-financial assets in June 2014 of R831 million was reclassified to separately disclosable 
       line items. The amount reclassified was presented according to the nature, namely impairment of property, plant 
       and equipment and intangible assets of R15 million and goodwill arising on consolidation amounting to R816 million.                                                                                                                                                                                                        
3.3.11 Operating expenses of R100 million (June 2014: R202 million) were reallocated to cost of sales to more 
       accurately allocate overheads to cost of sales.                                                                                                                                                                                                                                                                          
3.3.12 Aveng Capital Partners was reallocated from the Other and Eliminations segment to Construction and Engineering: 
       South Africa and rest of Africa. The adjustment accurately reflects the value chain inherent in the Construction 
       and Engineering: South Africa and rest of Africa business model.                                                                                                               
4.     Business combinations                                                                                                                                                                                               
       Dynamic Fluid Control Proprietary Limited, a wholly owned subsidiary of Aveng (Africa) Proprietary Limited, acquired 
       100% of the equity and voting rights of Atval Proprietary Limited (“Atval”) effective from 1 July 2014.                                                                                                       
       Atval was established in 1985 and is a leading South African manufacturer of high pressure knife-gate valves with 
       25 years of proven experience in the South African market. The company primarily focuses on high-pressure pinch 
       valves that are extensively used on mineral processing, particularly abrasive tailings pipe lines, with annuity 
       income generated from maintenance of valve sleeve linings.   
                                  
       The purchase price allocation exercise will be completed within 12 months, which will reduce the goodwill and 
       recognise tangible and intangible assets at fair value.                                                                                                                       
                                                                                December   
                                                                                    2014    
                                                                              (Unaudited)    
                                                                                      Rm   
                                                                                           
       Cash outflow on acquisition:                                                       
       Consideration paid                                                             25   
       Less: Cash and bank balances acquired                                          (2)  
                                                                                      23   
       Goodwill arising on acquisition                                                    
       Consideration paid                                                             25   
       Less: Provisional fair value of identifiable net assets acquired               (6)  
                                                                                      19         

5. SALE OF SUBSIDIARY  
   On 31 October 2014, 100% of the investment in Electrix Proprietary Limited and Electrix Limited 
   (collectively “Electrix”) was sold. Electrix was a wholly owned business and formed part of the Construction 
   and Engineering: Australasia and Asia segment.  
   
   The profit on disposal of the subsidiary was R777 million (R713 million after taxation) including the recycled 
   foreign currency translation reserve (“FCTR”) of R111 million. The profit is separately disclosed in the 
   statement of comprehensive earnings. 
   
   Electrix has always formed part of the Construction and Engineering: Australasia and Asia segment. Electrix was 
   not considered an operating segment nor a separate major line of business or geographical area. The sale of this
   business does not give rise to a discontinued operation but rather a disposal group.
   
                                                                December   
                                                                    2014    
                                                              (Unaudited)    
                                                                      Rm    
   Net cash impact of sale   
   Total assets (excluding cash and bank balances)                   756   
   Cash and bank balances                                            129   
   Total liabilities                                                (536)  
   Net assets sold                                                   349   
   Profit on disposal before tax                                     777   
   Add back: Associated obligations and transaction costs            464   
   Less: FCTR recycled to earnings                                  (111)  
   Total proceeds received in cash                                 1 479   
   Less: Cash and bank balances sold                                (129)  
   Less: Transaction costs paid                                      (36)  
   Net cash received                                               1 314   
   
   
6. SEGMENTAL REPORT   
                                                     Construction and Engineering:
                                                               South  
                                                          Africa and                                Manufacturing           Other 
    Six months ended December 2014 (Unaudited)                    rest     Australasia                          and             and   
    Rm                                                       of Africa        and Asia     Mining        Processing    Eliminations       Total 
    External revenue                                             4 122          11 804      2 974             4 959               5      23 864   
    Internal revenue                                               172               -          -               294            (466)          -   
    Gross revenue                                                4 294          11 804      2 974             5 253            (461)     23 864   
    Cost of sales                                               (4 350)        (11 041)    (2 592)           (4 891)            570     (22 304)  
    Gross (loss) / earnings                                        (56)            763        382               362             109       1 560   
    Other earnings                                                 126              47          1                91              54         319   
    Operating expenses                                            (326)           (618)      (142)             (374)            (36)     (1 496)  
    Earnings / (loss) from equity-accounted investments             27              (9)         -                 -              12          30   
    Net operating (loss) / earnings                               (229)            183        241                79             139         413   
    Impairment of property, plant and equipment and 
    intangible assets                                             (152)            (33)       (29)              (32)              -        (246)  
    Impairment of goodwill arising on consolidation                  -            (291)         -                 -               -        (291)  
    Profit on sale of subsidiary                                     -             777          -                 -               -         777   
    (Loss) / earnings before financing transactions               (381)            636        212                47             139         653   
    Finance earnings                                                41              17          1                 7               6          72   
    Other finance expenses                                         (23)            (48)       (24)              (23)           (120)       (238)  
    (Loss) / earnings  before taxation                             (363)            605        189                31              25         487   
    Taxation                                                        (7)            (92)       (12)               12             (26)       (125)  
    (Loss) / earnings for the period                              (370)            513        177                43              (1)        362   
    Capital expenditure                                             51             194        191               119              28         583   
    Depreciation                                                   (63)           (148)      (202)              (82)             (6)       (501)  
    Amortisation                                                    (4)              -          -                (5)             (5)        (14)  
  
   
                                                          Construction and Engineering:              
                                                                 South                              
                                                            Africa and                                Manufacturing           Other           
    Six months ended December 2013* (Unaudited)                   rest     Australasia                          and             and             
    Rm                                                       of Africa        and Asia     Mining        Processing    Eliminations       Total  
    External revenue                                             4 231          14 933      3 459             5 026               5      27 654   
    Internal revenue                                                53               -          2               239            (294)          -   
    Gross revenue                                                4 284          14 933      3 461             5 265            (289)     27 654   
    Cost of sales                                               (4 194)        (14 156)    (3 009)           (4 754)            332     (25 781)  
    Gross earnings                                                  90             777        452               511              43       1 873   
    Other earnings                                                  63               6          8               105              20         202   
    Operating expenses                                            (356)           (618)      (165)             (454)            (16)     (1 609)  
    Earnings from equity-accounted investments                       1              26          -                 -              17          44   
    Net operating (loss) / earnings                               (202)            191        295               162              64         510   
    Finance earnings                                                28              17          6                 6               -          57   
    Other finance expenses                                         (32)            (51)       (21)               (4)            (32)       (140)  
    (Loss) / earnings before taxation                             (206)            157        280               164              32         427   
    Taxation                                                       102             (45)       (95)              (52)            (24)       (114)  
    (Loss) / earnings for the period                              (104)            112        185               112               8         313   
    Capital expenditure                                             57             151        197               124             120         649   
    Depreciation                                                   (46)           (203)      (231)              (73)            (11)       (564)  
    Amortisation                                                    (7)              -          -                (6)             (7)        (20)  
    * Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes in accounting 
      policies and other reclassifications.
  
  
                                                         Construction and Engineering:              
                                                                 South                              
                                                            Africa and                             Manufacturing           Other           
    Year ended June 2014* (Audited)                               rest     Australasia                       and             and             
    Rm                                                       of Africa        and Asia     Mining     Processing    Eliminations       Total   
    External revenue                                             8 239          28 169      6 581          9 958              12      52 959   
    Internal revenue                                               438               -          1            654          (1 093)          -   
    Gross revenue                                                8 677          28 169      6 582         10 612          (1 081)     52 959   
    Cost of sales                                               (8 549)        (26 594)    (5 708)        (9 661)          1 188     (49 324)  
    Gross earnings                                                 128           1 575        874            951             107       3 635   
    Other earnings / (loss)                                         88             (10)       (14)           248             (10)        302   
    Operating expenses                                            (678)         (1 296)      (332)          (834)            (31)     (3 171)  
    Earnings / (loss) from equity-accounted investments             28               2          1             (1)              3          33   
    Net operating (loss) / earnings                               (434)            271        529            364              69         799   
    Impairment of property, plant and equipment and 
    intangible assets                                                -               -          -              -             (15)        (15)  
    Impairment of goodwill arising on consolidation                  -               -          -              -            (816)       (816)  
    (Loss) / earnings before financing transactions               (434)            271        529            364            (762)        (32)  
    Finance earnings                                                70              39         17             11              (1)        136   
    Other finance expenses                                         (64)           (101)       (59)            (7)            (88)       (319)  
    (Loss) / earnings before taxation                             (428)            209        487            368            (851)       (215)  
    Taxation                                                       119             (14)      (163)          (110)              7        (161)  
    (Loss) / earnings  for the period                             (309)            195        324            258            (844)       (376)  
    Capital expenditure                                            152             243        298            406             138       1 237   
    Depreciation                                                   (85)           (258)      (407)          (112)            (19)       (881)  
    Amortisation                                                   (13)              -          -             (5)            (10)        (28)  
    *Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes in accounting 
     policies and other reclassifications.   


                                          Construction and Engineering:              
                                                  South                              
    Segment report                           Africa and                             Manufacturing           Other           
    December 2014 (Unaudited)                      rest     Australasia                       and             and            
    Rm                                        of Africa        and Asia     Mining     Processing    Eliminations     Total                                                                                                        
    Assets                                                                                                                      
    Goodwill arising on consolidation                 -             100          -            251               -       351   
    Intangible assets                                 3               -          -            149             146       298   
    Property, plant and equipment                   600             891      2 663          1 356             315     5 825   
    Equity-accounted investments                    208              51          4              -               -       263   
    Infrastructure investments                      572              61          -              -               -       633   
    Deferred taxation                               776             348        370             86            (197)    1 383   
    Derivative instruments                            -              25          -             13              16        54   
    Amounts due from contract customers           2 048           6 957      1 058            419            (384)   10 098   
    Inventories                                      73               7        326          2 650               -     3 056   
    Trade and other receivables                     606             232        116          1 363             116     2 433   
    Cash and bank balances                          270           2 983        399            922            (318)    4 256   
    Non-current assets held-for-sale                  -               -          -              -             607       607   
    Total assets                                  5 156          11 655      4 936          7 209             301    29 257   
    Liabilities                                                                                                               
    Deferred taxation                                14               -        189              5              26       234   
    Borrowings and other liabilities                  -             279        661              6           1 628     2 574   
    Employee-related payables                       175             585        198             50             199     1 207   
    Amounts due to contract customers               631           1 367        260             94               1     2 353   
    Derivative instruments                            -               -          -              -               3         3   
    Trade and other payables                      1 149           4 384        714          2 465               1     8 713   
    Taxation payable                                 49              85         28             33              71       266   
    Payables other than contract-related             98               -          -              -               -        98   
    Total liabilities                             2 116           6 700      2 050          2 653           1 929    15 448   

 
                                           Construction and Engineering:                                 
                                                  South                                
    Segment report                           Africa and                               Manufacturing           Other             
    December 2013* (Unaudited)                     rest     Australasia                         and             and              
    Rm                                        of Africa        and Asia    Mining        Processing    Eliminations     Total  
    Assets 
    Investment property                               -               -         -                 -              78        78   
    Goodwill arising on consolidation               816             395         -               232               -     1 443   
    Intangible assets                                10              33         -                81              98       222   
    Property, plant and equipment                   649           1 114     2 884             1 399             818     6 864   
    Equity-accounted investments                     98              75         4                 1              41       219   
    Available-for-sale investments                   12              60         -                 -               -        72   
    Deferred taxation                               906             447       158                 -            (132)    1 379   
    Derivative instruments                            -               -         -                17              11        28   
    Amounts due from contract customers           1 549           6 609     1 132               472            (509)    9 253   
    Inventories                                     111              17       300             2 475               -     2 903   
    Trade and other receivables                     502             569      (102)            1 571             459     2 999   
    Cash and bank balances                          576           3 488       661               463              58     5 246   
    Total assets                                  5 229          12 807     5 037             6 711             922    30 706   
    Liabilities  
    Deferred taxation                                 1               -       176               173              36       386   
    Borrowings and other liabilities                  -             859       631                 -           1 078     2 568   
    Employee-related payables                       223             792       272               117              42     1 446   
    Amounts due to contract customers               707           1 010       543                92               -     2 352   
    Trade and other payables                      1 146           5 496       807             1 689             264     9 402   
    Taxation payable                                  -              93        55                33               -       181   
    Payables other than contract-related            189               -         -                 -               -       189   
    Bank overdrafts                                 200               -         2                99              69       370   
    Total liabilities                             2 466           8 250     2 486             2 203           1 489    16 894   
    * Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, changes 
      in accounting policies and other reclassifications. 
    

                                                 Construction and Engineering:                                  
                                                  South                                
                                             Africa and                               Manufacturing           Other            
    June 2014* (Audited)                           rest     Australasia                         and             and            
    Rm                                        of Africa        and Asia    Mining        Processing    Eliminations     Total  
    Assets                                                                                                                      
    Investment property                               -               -         -                 -              86        86   
    Goodwill arising on consolidation                 -             431         -                 -             232       663   
    Intangible assets                                 6              35         -               155             125       321   
    Property, plant and equipment                   702           1 170     2 746             1 374             354     6 346   
    Equity-accounted investments                    196              56         4                 -              50       306   
    Available-for-sale investments                  126              64         -                 -               -       190   
    Deferred taxation                               970             472       238              (102)           (175)    1 403   
    Derivative instruments                                                                                        1         1   
    Amounts due from contract customers           2 185           8 085       997               534            (450)   11 351   
    Inventories                                      98              23       304             2 368               -     2 793   
    Trade and other receivables                     434             174        93             1 980             104     2 785   
    Cash and bank balances                          351           2 830       466               720            (231)    4 136   
    Non-current assets held-for-sale                  -               -         -                 -             607       607   
    Total assets                                  5 068          13 340     4 848             7 029             703    30 988   
    Liabilities                                                                                                                 
    Deferred taxation                                17               -       211                18              11       257   
    Borrowings and other liabilities                  -             862       653                 7           1 345     2 867   
    Employee-related payables                       200             886       230               151             108     1 575   
    Amounts due to contract customers               728           1 612       231               106               -     2 677   
    Derivative instruments                           29              34         -                 -               -        63   
    Trade and other payables                      1 333           5 168       824             2 307             111     9 743   
    Taxation payable                                 60              61        95                 -              (3)      213   
    Payables other than contract-related            197               -         -                 -               -       197   
    Total liabilities                             2 564           8 623     2 244             2 589           1 572    17 592   
    * Comparatives have been amended as detailed in note 3: New accounting standards and interpretations adopted, 
      changes in accounting policies and other reclassifications.    
  
 
    The Group operates in five principal geographical areas:   
                                           Six         Six                      Six          Six       
                                        months       months                  months       months       
                                         ended        ended                   ended        ended       
                                      December     December        June    December     December         June
                                          2014         2013        2014        2014         2013         2014  
                                       Revenue      Revenue     Revenue     Revenue      Revenue      Revenue  
                                            Rm           Rm          Rm           %            %            % 
    South Africa                        10 036       10 249      19 489         42,0         37,1        36,8 
    Rest of Africa                       1 733        2 084       4 609          7,2          7,5         8,7 
    Australasia and Asia                10 060       13 467      25 001         42,2         48,7        47,2 
    South East Asia                      1 778        1 577       3 300          7,5          5,7         6,2 
    Middle East and other regions          257          277         560          1,1          1,0         1,1 
                                        23 864       27 654      52 959       100,00        100,0       100,0 

    
    The Group operates in five principal geographical areas: 
                                       December     December        June     December     December        June    
                                           2014         2013        2014         2014         2013        2014    
                                        Segment      Segment     Segment      Segment      Segment     Segment    
                                         assets       assets      assets       assets       assets      assets    
                                             Rm           Rm          Rm            %            %           %   
     South Africa                        14 651       14 099      14 206         50,1         45,9        45,8   
     Rest of Africa                       2 158        3 347       2 706          7,4         10,9         8,7   
     Australasia and Asia                10 559       11 821      12 377         36,1         38,5        39,9   
     South East Asia                      1 399        1 033       1 244          4,8          3,4         4,0   
     Middle East and other regions          490          406         455          1,6          1,3         1,6   
                                         29 257       30 706      30 988        100,0        100,0       100,0   


7. IMPAIRMENTS
 7.1 Impairment of property, plant and equipment and intangible assets  
     Following the goodwill impairment of R75 million pertaining to Aveng Water in the immediate preceding six month
     period ended 30 June 2014, it was necessary to impair assets due to the subdued economic conditions and the 
     resultant pressure on the order book. An impairment charge totalling R213 million was recognised against ancillary 
     operations. This comprising plant and equipment in the Construction and Engineering: South Africa and rest of
     Africa (R152 million charge), Manufacturing and Processing (R32 million charge) and Mining (R29 million charge).
     
     An intangible asset associated with Built Environs of R33 million was also impaired during the period. Refer to 
     note 7.2. 
 
     During the period ended 30 June 2014, indefinite life intangibles within Aveng Grinaker-LTA were fully impaired
     by R15 million.  
  
 7.2 Impairment of goodwill arising on consolidation  
     Goodwill of R291 million associated with the Built Environs business (refer to note 7.1) in the Construction and 
     Engineering: Australia and Asia segment has been fully impaired. While management has implemented a robust 
     turnaround plan for this business, there is uncertainty around the business’s ability to generate the required 
     returns within a reasonable timeframe based on the current order book. The timing of this impairment is aligned with
     the Group’s renewed focus on the return on assets within the direct control of management.   
 
     During the period ended 30 June 2014, the goodwill associated with the Aveng Water business (R75 million) was impaired 
     as a result of its repositioning within the Group to a more ancillary and supportive role within the Construction and 
     Engineering operating group.  
   
     During the period ended 30 June 2014, the goodwill associated with Aveng Grinaker-LTA was also fully impaired amounting 
     to R741 million. This impairment was linked to the difficulty in quantifying the fact pattern of the current operating
     group turnaround plan.                                                                                                                                                                                                                                                                                                           


8. EQUITY-ACCOUNTED INVESTMENTS   
                                                                            December       December         June    
                                                                                2014           2013         2014    
                                                                          (Unaudited)    (Unaudited)    (Audited)  
                                                                                  Rm             Rm           Rm   
   Opening balance                                                               306            144          144   
   Transfer to infrastructure investments held at fair value                      (3)             -            -   
   Transfer of shareholder loans to infrastructure investments                  (168)                              
   Loans advanced                                                                 92             44          154   
   Share of other comprehensive earnings                                           -              -          (28)  
   Share of earnings before taxation and dividends                                44             37           44   
   Amount recorded in the statement of comprehensive earnings                     30             44           33   
   Excluding: Fair value adjustments on foreign exchange contracts 
   disclosed as derivative instruments                                            14             (7)          11   
   Dividends received                                                             (4)            (6)         (13)  
   Foreign currency translation movement                                           4              -            6   
   Other                                                                          (8)             -           (1)  
                                                                                 263            219          306   
   
   The Group’s share of bank guarantees issued by Dutco McConnell Dowell Middle East LLC is R95 million (December 2013: R93 million, 
   June 2014: R93 million) for which no liabilities are expected to arise. Other than as stated above, the Group did not incur any 
   other contingent liabilities with regards to associates and joint ventures.   

   
9. INFRASTRUCTURE INVESTMENTS  
                                                                           December       December         June   
                                                                               2014           2013         2014   
                                                                         (Unaudited)    (Unaudited)    (Audited)  
                                                                                 Rm             Rm           Rm   
                                                                                                                  
   South African infrastructure investments                                                                       
   At fair value through profit or loss                                         447              -            -   
   Available-for-sale investment                                                126              -            -   
   Other infrastructure investments                                             573              -            -   
   Available-for-sale investment                                                 60              -            -   
   Total infrastructure investments                                             633              -            -   
   With effect from 1 July 2014, the Group’s South African Infrastructure investments managed by Aveng Capital 
   Partners (“ACP”) were measured at fair value. These include all South African infrastructure investments in 
   which the Group holds less than 50%. These investments are managed, reported and evaluated on a fair value 
   basis in terms of ACP’s investment methodology. To the extent that these investments were previously 
   equity-accounted, they have been reclassified to infrastructure investments at their equity-accounted values 
   as at 30 June 2014. This is not considered to be a change in accounting policy as the ACP business model was 
   only approved from 1 July 2014.  
         
                                                                             December      December         June    
                                                                                2014           2013         2014    
                                                                           (Unaudited)    (Unaudited)    (Audited)  
                                                                                   Rm             Rm           Rm   
                                                                                                                    
   South African infrastructure investments                                                                         
   Opening balance                                                                  -              -            -   
   Reclassification of equity investment from equity-accounted investments          3              -            -   
   Reclassification of shareholder loans from equity-accounted investments        168              -            -   
   Recycling of equity-accounted earnings from other comprehensive income 
   upon reclassification                                                           28                               
   Reclassification from available-for-sale investments                           126                               
   Fair value remeasurement through comprehensive earnings                         83                               
   Loans advanced                                                                 165              -            -   
                                                                                  573              -            -   
   Determination of fair values     
   The fair values of the project investments in the ACP portfolio are determined by discounting the cash flows 
   from the relevant forecast models. The discount rates applied in the valuations are based on an internal Aveng 
   funding rate plus a risk premium specific to each project investment, taking into consideration specific industry 
   benchmarks and the project stage in the project life cycle.                                              
     
10. AMOUNTS DUE FROM / (TO) CONTRACT CUSTOMERS                                                                         
                                                                             December        December           June   
                                                                                 2014            2013           2014   
                                                                           (Unaudited)     (Unaudited)      (Audited)    
                                                                                   Rm              Rm             Rm   
                                                                                                                       
    Uncertified claims and variations (underclaims)1                            6 495           5 535          6 763   
    Provision for amounts due from contract customers1                           (964)         (1 083)        (1 102)  
    Progress billings received (overclaims)2                                   (1 728)         (1 852)        (1 766)  
    Uncertified claims and variations less progress billings received           3 803           2 600          3 895   
    Contract receivables3                                                       4 420           4 653          5 527   
    Provision for contract receivables                                            (46)            (51)           (46)   
    Retention receivables4                                                        193             199            209   
                                                                                8 370           7 401          9 585   
    Amounts received in advance5                                                 (625)           (500)          (911)  
    Net amounts due from contract customers                                     7 745           6 901          8 674   
    Disclosed on the statement of financial                                                                            
    position as follows:                                                                                               
    Uncertified claims and variations                                           6 495           5 535          6 763   
    Provision for amounts due from contract customers                            (964)         (1 083)        (1 102)  
    Contract and retention receivables                                          4 613           4 852          5 736   
    Provision for contract receivables                                            (46)            (51)           (46)  
    Amounts due from contract customers                                        10 098           9 253         11 351   
    Progress billings received                                                 (1 728)         (1 852)        (1 766)  
    Amounts received in advance                                                  (625)           (500)          (911)  
    Amounts due to contract customers                                          (2 353)         (2 352)        (2 677)  
    Net amounts due from contract customers                                     7 745           6 901          8 674 

    1 Includes revenue not yet certified - recognised based on percentage of completion / measurement and 
      agreed variations, less provisions and deferred contract costs.    
    2 Progress billings are amounts billed for work performed above revenue recognised.   
    3 Amounts invoiced still due from customers.     
    4 Retentions are amounts invoiced but not paid until the conditions specified in the contract are fulfilled 
      or until defects have been rectified.   
    5 Advances are amounts received from the customer before related work is performed.   
     
    Included in amounts due from contract customers are non-current assets of R3 192 million (December 2013: R3 431 million, 
    June 2014: R2 946 million).  
    Included in contract receivables are amounts that are past due but not impaired; these have been adequately assessed for 
    impairment.

11. NON-CURRENT ASSETS HELD-FOR-SALE    
    During the previous financial year, the Group made a decision to dispose of non-core properties. These properties were 
    classified as non-current assets held-for-sale and will be sold as a single portfolio of land and buildings. The transaction 
    is expected to be finalised in the second half of the financial year.   

12. BORROWINGS AND OTHER LIABILITIES                                                                                                                                                                                                           
    Convertible bonds                                                                                                                                                                    During July 2014, the Company issued convertible bonds denominated in South African rand with a nominal value of R2 billion 
    During July 204, the Company issued convertible bonds  denominated in South African rand with a nominal value of R2 billion 
    and a coupon of 7,25%. Interest is payable bi-annually for a period of five years with the bond repayment date being five 
    years from the issue date at par plus interest.                                                                                                                                                                                           
    The bonds are convertible into 69,6 million Aveng Limited shares at the holder’s option based on a conversion price of R28,76 
    subject to shareholders’ approval, which was received on 19 September 2014.                                                                                                                                                                    
    The Company has the option to call the bonds at par plus accrued interest at any time on or after 7 August 2017 up to 20 
    consecutive dealing days before the redemption date, if the aggregate value of the underlying shares per bond for a 
    specified period of time is 130% of the conversion price. However, the bondholders may convert the bonds into shares before 
    the actual settlement.                                                                                                                                                                                                                           
    The Company also has the option to settle the outstanding bonds at par plus accrued interest at any time if less than 15% 
    of the bonds remain outstanding.                                                                                                                                                                                                                                                                                                                                          The convertible bonds comprise a liability component as well as an embedded conversion option, being the option for the 
    bondholders to convert the bond to a fixed number of Aveng Limited shares.                                                                                                                                                                      
    The liability component is recognised and initially measured at fair value, adjusted for transaction costs and subsequently 
    measured at amortised cost in accordance with the Group’s accounting policy on borrowings and other liabilities. The 
    conversion option was initially measured at fair value with changes in the fair value recognised in comprehensive earnings 
    in accordance with the Group’s accounting policy on derivative instruments. On the date that shareholder approval was 
    obtained to settle the instruments in shares, the derivative was reclassified to equity, at the then fair value.   
                                                         
    The effective interest rate associated with the convertible bond liability is 13,6% per annum.                                                                                                                                                   
                                                                       Convertible                    Convertible        
                                                                              bond     Derivative     bond equity         
                                                                         liability      liability         reserve    Total       
                                                                                Rm             Rm              Rm       Rm     
                                                                                                                             
    Issued July 2014                                                         1 562            438               -    2 000   
    Transaction costs                                                          (41)             -               -      (41)  
    Fair value adjustment to comprehensive earnings                              -            (36)              -      (36)  
    Transfer to equity                                                           -           (402)            402        -   
    Transaction costs allocated to equity component                                                           (12)     (12)  
    Interest determined with the effective interest rate                        95              -               -       95   
                                                                                                                             
    Accrual of coupon interest for convertible bonds                            64              -               -       64   
    Accretion of liability due to:                                                                                           
     Transaction costs capitalised                                               3              -               -        3   
     Effect of fair value adjustment of derivative liability                     2              -               -        2   
     Effect of fair value of conversion option reclassification to equity       26              -               -       26   
                                                                                                                              
                                                                              1 616              -             390    2 006   
                                                                                                                                         
    The Group had the following undrawn facilities:                                              
                                                                         December       December         June        
                                                                             2014           2013         2014       
                                                                       (Unaudited)    (Unaudited)    (Audited)   
                                                                                                                
    Total borrowing facilities                                              6 774          3 807        5 567   
    Current utilisation                                                    (2 574)        (2 938)      (2 867)  
                                                                            4 200            869        2 700   

13. TAXATION                                                                                                 
                                                                    Six months     Six months         Year        
                                                                         ended          ended        ended       
                                                                   31 December    31 December      30 June    
                                                                          2014           2013         2014        
                                                                    (Unaudited)    (Unaudited)    (Audited)   
                                                                            Rm             Rm           Rm          
                                                                                                             
    Taxation expense                                                                                         
    Current taxation expense                                               138             79          255   
    Deferred taxation charge                                               (13)            35          (94)  
                                                                           125            114          161   
                                                                             %              %            %   
    Effective tax rate reconciliation                                                                        
    Effective taxation rate                                               25,7           26,7        (74,9)  
    Deferred taxation asset capped                                       (20,4)             -            -   
    Other special items*                                                  (5,3)          (0,6)       100,0   
    Effective taxation rate on earnings excluding special items              -           26,1         25,1   
    Exempt income                                                         41,3            0,9         15,3   
    Deferred taxation asset not recognised                                   -              -        (14,4)  
    Disallowable charges                                                  (8,4)          (1,6)        (4,8)  
    Change in taxation rate                                                  -              -         (0,4)  
    Prior year adjustment                                                 (4,0)             -          5,3   
    Effects of other jurisdictions and other                              (0,9)           2,6          1,9   
                                                                          28,0           28,0         28,0   
    * Refer to the statement of adjusted earnings for information relating to special items.                                              
                                                                                                             
    South African income taxation is calculated at 28% (Dec 2013: 28%, June 2014: 28%) of the taxable income for the 
    period. Taxation in other jurisdictions is calculated at rates prevailing in the relevant jurisdictions.                                              
                                                                                                             
    Deferred taxation asset                                                                                  
    The recognition of deferred taxation assets are supported by probable forecasted taxable profits for the reporting periods 
    up to and including 30 June 2019. These forecasts take into account viable taxation planning opportunities and other expected 
    cost savings.                                              
                                                                                                                   
    The Group has not increased the deferred taxation asset, since 1 July 2014, for Aveng Africa due to the Board taking a 
    conservative view on the ability to utilise further assets in the foreseeable future. From 1 July 2014, an additional 
    deferred taxation asset was not recognised to the extent that assessed losses (arising since 1 July 2014) exceed the 
    reversal of other temporary differences.                                              

14. RELATED PARTIES                                                                                                                                                                                                                                                                           
    During the period Aveng Limited and its subsidiaries, in the ordinary course of business, entered into various sale and 
    purchase transactions with equity-accounted investments. There have been no significant changes to the nature of related 
    party transactions since 30 June 2014.   
                                                                                                                                                                                                                                                                                              
    There were no related party transactions with directors or entities in which the directors have a material interest other 
    than director’s emoluments.                                                                                                                                     

15. EARNINGS, ADJUSGTED EARNINGS AND HEADLINE EARNINGS PER SHARE   

                                                                        Weighted                        Weighted       Number of       Weighted   
                                                                         average                         average          shares        average   
                                                          Number       number of          Number       number of            June      number of   
                                                       of shares          shares       of shares          shares            2014         shares    
                                                        December        December        December        December            June           June    
                                                            2014            2014            2013            2013            2014           2014   
                                                                                                                                                  
    Number of shares (excluding treasury shares)     400 274 095     400 556 037     373 890 810     373 890 810     400 647 313    374 007 675   
    Diluted number of                                402 065 952     402 065 952     402 066 221     402 066 221     402 065 952    402 065 952   
    shares*                                                                                                                                           
    * The convertible bonds were anti-dilutive for the period ended 31 December 2014 and have therefore been excluded from 
      the calculation of the diluted number of shares.                                                                                                      
                                              
                                                                       Six months     Six months    Six months   Six months         
                                                                            ended          ended         ended        ended           
                                                                         December       December      December     December    Year ended   Year ended    
                                                                             2014           2014          2013         2013    June 2014     June 2014    
                                                                         Gross of         Net of      Gross of       Net of     Gross of        Net of  
                                                                         taxation       taxation      taxation     taxation     taxation      taxation                    
                                                                               Rm             Rm            Rm           Rm           Rm            Rm       
                                                                                                                                                          
    Determination of headline earnings                                                                                                                    
    Earnings for the period attributable to equity-holders of the parent*                     358                        314                       (381)  
    Impairment of goodwill                                                     291            291             -            -          816           816   
    Impairment of property, plant and equipment                                213            182             -            -            -             -   
    Impairment of intangible assets                                             33             33             -            -           15            15   
    Profit on sale of property, plant and equipment                             (5)            (4)           (1)          (1)         (25)          (18)  
    Profit on sale of subsidiary                                              (777)          (713)            -            -            -             -   
    Fair value adjustment on investment property                               (11)            (9)           (7)          (6)         (15)          (11)  
    Headline earnings*                                                                        138                        307                        421   
    Adjusted earnings* / **                                                                   214                        258                        335   
    ** Earnings and adjusted earnings are calculated in accordance with IAS 33 Earnings per share. Headline earnings are calculated 
       in accordance with Circular 2 / 2013.                                                                                               
    ** Refer to the statement of adjusted earnings for further information.                                                                                               
                                                   
                                                                            Six months     Six months                    Year        
                                                                                 ended          ended                   ended       
                                                                           31 December    31 December                 30 June    
                                                                                  2014           2013                    2014        
                                                                            (Unaudited)    (Unaudited)         %      (Audited)   
                                                                                    Rm             Rm     change           Rm          
                                                                                                                                
    Determination of diluted earnings*                                                                                          
    Earnings for the period attributable to equity-holders of the parent            358            314        14         (381)  
    Diluted earnings attributable to equity-holders of the parent                   358            314        14         (381)  
    Diluted headline earnings                                                       138            307       (55)         421   
    Diluted adjusted earnings                                                       214            258       (17)         335   
    Earnings / (loss) per share                                                    89,3           83,9         6       (101,9)  
    - basic (cents)                                                                                                             
    Earnings / (loss) per share                                                    89,0           78,0        14        (94,8)  
    - diluted (cents)                                                                                                           
    Headline earnings per share                                                    34,5           82,1       (58)       112,5   
    - basic (cents)                                                                                                             
    Headline earnings per share                                                    34,4           76,3       (55)       104,7   
    - diluted (cents)                                                                                                           
    Adjusted earnings per share                                                    53,3           69,0       (23)        89,7   
    - basic (cents)                                                                                                             
    Adjusted earnings per share                                                    53,1           64,2       (17)        83,4   
    - diluted (cents)                                                                                                           
    * The convertible bonds were anti-dilutive for the period ended 31 December 2014 and have therefore not been included in 
      the calculation of diluted earnings.                                                        

16. NON-CASH AND OTHER MOVEMENTS                                                                                             
                                                                                       Six months     Six months         Year        
                                                                                            ended          ended        ended       
                                                                                      31 December    31 December      30 June    
                                                                                             2014           2013         2014        
                                                                                       (Unaudited)    (Unaudited)    (Audited)   
                                                                                               Rm             Rm           Rm          
                                                                                                                                 
    Earnings from disposal of property, plant and equipment                                   (18)           (55)         (66)   
    Impairment of goodwill, property, plant and equipment and intangible assets               537              -          831   
    Profit on disposal of subsidiary                                                         (777)             -            -   
    Movement in employee-related payables                                                       -              -            -   
    Fair value adjustment                                                                    (104)           (7)          (15)   
    Movement in foreign currency translation                                                  (63)           (79)        (206)   
    Movement in equity-settled share-based payment reserve                                      7              1            5   
    Non-controlling interest acquired                                                           -             (1)           -   
                                                                                             (418)          (141)         549   
                                                                                     
17. CONTINGENT LIABILITIES                                                                                                             
                                                                                        December       December         30 June      
                                                                                            2014           2013            2014        
                                                                                      (Unaudited)    (Unaudited)*      (Audited)*   
                                                                                              Rm             Rm              Rm           
                                                                                                                                       
    Contingent liabilities at the reporting date, not otherwise                      
    provided for in the interim results, arose from performance                      
    bonds and guarantees issued in:                                                     
    South Africa and rest of Africa                                                                                                    
    Guarantees and bonds (ZARm)                                                            3 735          3 211           4 061        
    Parent company guarantees (ZARm)                                                       2 851          3 002           2 987        
                                                                                           6 586          6 213           7 048        
    Australasia and Asia                                                                                                               
    Guarantees and bonds (AUDm)                                                              623            644             651          
    Parent company guarantees (AUDm)                                                       4 764          3 894           4 149        
                                                                                           5 387          4 538           4 800        

   * Adjusted to remove advance payment guarantees where the advance payment is already recognised as a liability to    
     the Group.                                                                                                            

   Taxation dispute with Zambia Revenue Authority (“ZRA”)                                                                                                                                                                                                                                             
   A subsidiary of the Group, Moolmans Mining Zambia is currently in a taxation dispute with the ZRA relating to additional 
   taxation assessments issued to the company by the ZRA. During the six month period, an advance payment was made to the ZRA 
   in order to release all equipment from Zambia. This dispute is currently ongoing and the Group has raised sufficient 
   provision in this regard.                                                                                      
                                                                                                                
   Claims and legal disputes in the ordinary course of business                                                                                                                                                                                                                                      
   The Group is, from time to time, involved in various claims and legal proceedings arising in the ordinary course of business. 
   The Board does not believe that adverse decisions in any pending proceedings or claims against the Group will have a material 
   adverse effect on the financial condition or future operations of the Group. Provision is made for all liabilities which are 
   expected to materialise and contingent liabilities are disclosed when outflows are possible.   

Commentary
Overview
Salient features
- All Injury Frequency Rate improved to 3,5 compared with 3,8 at 30 June 2014
- Revenue decreased by 14% to R23,9 billion (2013: R27,7 billion) 
- Net operating earnings decreased by 19% to R413 million (2013: R510 million)
- Headline earnings per share decreased by 58%
- Sale of the Electrix business successfully completed
- Two-year order book (excluding Electrix) flat at R32,5 billion against December 2013
- Net cash improved to R1,7 billion from R1,3 billion in June 2014

Safety
Aveng remains fully committed to improving its safety culture by driving the safety vision “Home without harm,
Everyone, Everyday”.

Regrettably, the Group suffered two fatalities in the Mining operating segment during the six-month period ended 31
December 2014. This remains unacceptable as the Group strives towards fatality-free operations. The Aveng Board and management
extend their sincere condolences to the families of the deceased employees. 

Along with the improvement in the All Injury Frequency Rate, other notable achievements included:
- numerous recognition awards from international mining client, Codelco, the most notable of which was for safety,
  health and environmental management excellence at Aveng Mining Shafts & Underground’s Chuquicamata Copper Mine contract in
  Chile;
- Aveng Engineering’s Pembani Coal Carolina washing plant contract, for achieving seven years without a Lost Time
  Injury; and
- Aveng Grinaker-LTA’s Mechanical and Engineering contract at Medupi power station achieved 2,3 million Lost Time
  Injury-free hours.

Operating environment 
Overview
In line with the economic slowdown experienced in the Group’s key markets, Aveng continued to experience difficult
trading conditions.

Continuing the preceding financial year’s trends, the South African market remained challenging due to low levels of
major infrastructure-related spend, the impact of reduced mining activities and labour disruptions. 

Trading conditions in Australia were complicated by the fact that social and transport-related infrastructure projects
are not yet compensating for the reduced mining infrastructure spend and recent decline in liquid natural gas projects.

Despite these macro-economic challenges, the recovery and stabilisation plan implemented in the previous financial
year, which focused on strengthening liquidity and reducing fixed costs, continued to progress as anticipated.

Construction and Engineering: Australasia and Asia: The general Australian business environment remained tough with
increased competition and lower major mining opportunities resulting in decreased revenue. Notwithstanding, opportunities
exist in social and transport-related infrastructure projects and in the oil and gas sectors. McConnell Dowell continues
to focus on non-mining-related work. Growth in Southeast Asia partially offset the previously anticipated reduction in
revenue, following the completion of multi-year major mining and infrastructure contracts. 

Construction and Engineering: South Africa and rest of Africa: The segment remained constrained due to the lack of
large infrastructure investments, as evidenced by the weak forecast South African GDP growth rate of 1,4% for 2014. The
marginally improved segmental revenue, compared with 31 December 2013, was mainly due to construction activity on two large
private sector building-related contracts and engineering work on two renewable energy contracts, of which the Sishen
solar energy facility was successfully completed on schedule in December 2014.

Mining: With no improvement in the downturn of the commodities market, the segment’s revenue was unable to compensate
for the non-renewal of three gold-mining contracts in Africa during the previous financial year, despite the
commencement of the Nkomati Nickel Mine contract and increased activity on existing contracts.

Aveng Manufacturing: Recent investments by Infraset in Mozambique and Zambia enabled it to benefit from the strong
demand for concrete rail products, while Lennings Rail Services’ revenue was assisted by growth in rail construction and
maintenance services in sub-Saharan Africa. Labour disruptions and constrained infrastructure investment adversely
affected the mining, water and specialist construction products business units.

Aveng Steel: The extremely demanding market conditions that characterised the second half of the previous financial
year continued into the current year, with the South African steel sector experiencing numerous business failures in the
downstream market segment. Aveng Steel was adversely affected by the longer-than-anticipated steel sector labour
disruptions, high competition and lower international prices, - which had a notably negative impact on sales volumes and inventory
levels.

Financial performance
Statement of comprehensive earnings
Revenue decreased by 14% to R23,9 billion against the comparative period’s R27,7 billion primarily as a result of:
- completion of multi-year major mining and infrastructure-related contracts within the Construction and Engineering:
  Australasia and Asia segment; and
- non-renewal of three gold-mining contracts at Aveng Moolmans.

The decrease in revenue was marginally offset by the weaker rand to Australian dollar exchange rate, which contributed
R602 million (2013: R1,6 billion) to rand revenue from the Construction and Engineering: Australasia and Asia operating
segment.

Net operating earnings decreased by 19% to R413 million (2013: R510 million), while the earnings margin decreased
slightly to 1,7% (2013: 1,8%). This result was characterised by: 
- further losses on the Mokolo Crocodile Pipeline contract (“Mokolo”) as a result of difficulties in returning to higher
  productivities following severe flood damage, causing an extended close-out of the contract; as well as increased costs
  and penalties associated with remedial action to address operational difficulties relating to a water purification
  contract;
- unforseen losses on the Grootegeluk Cyclic Pond contract due to weather delays and scope changes; 
- an 18% decline in the Mining segment’s earnings due to the non-renewal of three gold-mining contracts in the open-cut
  business and lower-than-anticipated productivity levels in the shaft-sinking unit; 
- a tough steel sector culminating in a weak result from Aveng Steel, being largely responsible for the 51% reduction in
  the Manufacturing and Processing segment’s earnings. This was driven by labour disruptions, reduced margins due to weak
  demand and increased price competition, and restructuring costs to re-align the fixed cost base; and
- in mitigation of the above: 
  - solid results from Aveng Manufacturing due to strong demand for rail and related services in sub-Saharan Africa; and
  - fair value gains of R94 million included in other earnings - representing gains on infrastructure investments
    reaching a marketable maturity level allowing for their reclassification as financial assets held at fair value, and 
    gains on investment properties.

Earnings from equity-accounted investments of R30 million was down by R14 million against the comparative period due
to losses incurred on McConnell Dowell’s Middle East investments, as well as certain investments being reclassified as
infrastructure investments (held at fair value), effective from 1 July 2014.

McConnell Dowell disposed of its shares in Electrix on 31 October 2014 for R1,3 billion. The profit on the sale of
this subsidiary (treated as a disposal group and not a discontinued operation) amounted to R777 million before taxation. 

The Group recognised the impairment charges described below following a review of current business performance, a
consideration of the prevailing market conditions, the resultant pressure on the relevant order books, and the Group's
view of the subdued economic conditions in the nearer term.
 
Goodwill of R291 million and intangible assets of R33 million associated with the Built Environs business in the
Construction and Engineering: Australasia and Asia segment was fully impaired. While management have implemented a robust
turnaround plan for this business, there is uncertainty around the business’ ability to generate the required returns
within a reasonable timeframe based on the current order book. The timing of this impairment is aligned to the Group’s
renewed focus on the return on assets within the direct control of management, as opposed to legacy intangible assets.

An impairment charge totalling R213 million was recognised against ancillary operations, comprising plant and equipment 
in the Construction and Engineering: South Africa and rest of Africa (R152 million charge), Manufacturing and Processing 
(R32 million charge) and Mining (R29 million charge) segments. 

Net bank and related finance charges of R50 million were in line with the comparative period. Transaction costs of R57
million were above that of the comparative period (R30 million) in order to maintain access to previously arranged loan
facilities in South Africa and Australia in support of the Group’s liquidity position. The net convertible bonds
interest expense - including the accretion of interest at the effective interest rate for the share redemption amount -
equalled to R59 million. This charge was reduced by a R36 million fair value gain on the carrying amount of the equity option
embedded in the convertible bonds. Following shareholder approval (on 19 September 2014) to equity settle the bonds, the
option was reclassified to equity and will no longer be fair valued.

The taxation expense increased to R125 million, with an effective tax rate of 25,7% from R114 million (26,7%) in the
comparative period.

Headline earnings decreased by 55%. Items excluded from the calculation of headline earnings include the profit on
sale of Electrix, impairment charges and fair value gains on investment property.

Earnings per share (“EPS”) of 89,3 cents (2013: 83,9 cents) increased by 6% and headline earnings per share (“HEPS”)
of 34,5 cents (2013: 82,1 cents) decreased by 58%. The per share amounts were reduced as a result of the impact of
dilution caused by the issuing of shares to conclude the Group’s BEE transaction on 30 June 2014. 

Statement of financial position
The Group reduced its capital expenditure to R583 million (2013: R649 million). Of this, R101 million (2013: R271
million) went into expansions; R456 million (2013: R320 million) to replacements of property, plant and equipment;
and R26 million (2013: R58 million) for intangible assets. The majority of the amount was spent as follows:
- R192 million at McConnell Dowell to replace equipment in the Overseas Construction (notably Southeast Asia) business
  unit.
- R155 million at Aveng Moolmans which included an excavator replaced due to fire damage.
- R79 million at Aveng Manufacturing primarily relating to replacements in the Lennings Rail Services business unit as
  well as a plant upgrade and other new equipment for Infraset.

During December 2014, the Group, by following its minority rights through a co-ownership agreement, disposed of its
10,9% interest in the Goldfields Mall investment property for R97 million.

Capital expenditure net of proceeds from disposals (including the aforementioned sale of investment property and
insurance proceeds on the replaced Aveng Moolmans excavator) reduced by R261 million to R244 million (2013: R505 million),
primarily reflecting the disposal of construction camps and ancillary equipment utilised by McConnell Dowell’s multi-year
major mining and infrastructure contracts.

Equity-accounted investments increased by 20% to R263 million against the comparative period and decreased by 14%
compared with 30 June 2014, predominantly due to an increase in equity funding and temporary bridging loans, and the
subsequent reclassification of three concession investments as infrastructure investments. This reclassification resulted from
Aveng Capital Partners’ (“ACP”, formally Aveng Concessions) investments reaching a marketable maturity level allowing
for their reclassification as financial assets held at fair value. 

Infrastructure investments of R633 million represent the aforementioned reclassification from equity-accounted
investments, and the Group’s investment in the N3 Toll Concession, which retains its classification as an available-for-sale
investment, along with the Australian available-for-sale investment in GoldlinQ, the concession investment in the Gold
Coast Rapid Transit (“GCRT”) project. 

Inventories increased by 5% to R3 billion against the comparative period and increased by 9% compared with 30 June
2014. This was due to increased inventory holdings by Aveng Steel, as a result of the rebalancing of the inventory mix
(including the impact of increased imports) and slower-than-anticipated sales due to depressed market conditions. 

Amounts due from contract customers (being non-current and current) increased by R845 million (9%) to R10,1 billion
against 31 December 2013 (R9,3 billion). However, there was a significant decrease of R1,3 billion (11%) against the
position at 30 June 2014 of R11,4 billion. The main contributors were: 
- against 31 December 2013, an increase in uncertified claims and variations on major infrastructure and building
  contracts at McConnell Dowell, and Aveng Mining Shafts & Underground’s Chuquicamata Copper Mine contract in Chile;
- against 30 June 2014, a reduction of R1 billion on contract receivables at McConnell Dowell due to settlement payments
  received on major mining, transport infrastructure and oil and gas contracts.

Amounts due to contract customers remained flat against 31 December 2013, while decreasing by 12% compared with 30
June 2014, due to the utilisation of advance payments at McConnell Dowell.

Trade and other receivables of R2,4 billion decreased by R566 million (19%) against R3,0 billion at 31 December 2013
due to improved collections at Aveng Manufacturing and Aveng Steel. The 13% or R352 million decrease compared with 30
June 2014 was attributable to higher sales volumes in June 2014 in anticipation of the steel industry labour disruptions
that followed in July, combined with improved collections and a short trading month in December 2014.

Trade and other payables decreased by R689 million (7%) to R8,7 billion against 31 December 2013 due to lower accruals
at McConnell Dowell as a result of lower contract-related expenditure and payment of trade payables on completion of
major contracts during the reporting period. AUD30 million of the AUD142,5 million advance payment was repaid on the
Queensland Curtis Liquid Natural Gas (“QCLNG”) contract in July 2014. As previously reported, it was anticipated that the
remainder would be settled by December 2014. However, based on the status of current negotiations, the settlement of the
remainder of the advanced payment is now expected during the second half of the financial year. 

Operating free cash flow for the period amounted to a R220 million inflow which included R1,3 billion of proceeds on
the disposal of Electrix, consistent with the Group’s ongoing initiative to improve liquidity. Furthermore, the cash
flow performance was characterised by:
- significant cash outflows for McConnell Dowell associated with the remedial work on the GCRT contract, repayment of
  the AUD30 million of advances on the QCLNG contract and the aforementioned working capital requirements;
- operating losses, utilisation of onerous contract provisions, notably related to the Mokolo contract, and working
  capital requirements within Aveng Grinaker-LTA;
- temporary bridging funding of the renewable energy investments; and
- this was in part mitigated by a sound operating performance from Aveng Manufacturing and a positive working capital
  contribution by Aveng Steel.

Cash and bank balances increased to R4,3 billion (June 2014: R4,1 billion), while the net cash position increased to
R1,7 billion from R1,3 billion at 30 June 2014. Borrowings decreased to R2,6 billion from R2,9 billion at 30 June 2014
due to the repayment of borrowings at McConnell Dowell. Proceeds from the issue of the convertible bond were utilised to
repay revolving credit facilities and fund working capital requirements.

The Group successfully placed R2 billion senior unsecured convertible bonds on 16 July 2014, which in turn was listed
on the Johannesburg Stock Exchange (“JSE”) on 4 September 2014. At date of issue, the convertible option (a derivative
instrument) was measured at a fair value of R438 million and the convertible bond liability was recognised at R1,6
billion. Authority for physical settlement in shares, on conversion, was granted at the general meeting convened on 19
September 2014. The fair value gain up to this date on re-measurement of the derivative liability amounted to R36 million,
thereafter the re-measured carrying amount of the option of R402 million was reclassified to equity together with
transaction costs allocable to the option. 

Deferred taxation assets decreased marginally against a comparative position of R1,4 billion. Aveng has not increased
the deferred taxation asset of its main South African operating subsidiary since June 2014 due to the Group taking a
conservative view on the ability to utilise further assets in the foreseeable future.
 
Operating review 
Construction and Engineering: Australasia and Asia
This operating segment comprises McConnell Dowell Construction, Tunnelling, Built Environs and the Pipeline business
units.

Revenue decreased by 25% to AUD1,2 billion or 21% to R11,8 billion against the comparative period, resulting in a 49%
(2013: 54%) contribution to the revenue of the Group. The reduction in revenue is reflective of the completion of
multi-year pipeline and building contracts, and the sale of Electrix. In Australian dollar terms net operating earnings were
flat at AUD19 million. However, net operating earnings in rand terms decreased by 4% to R183 million (2013: R191
million). The net operating margin percentage improved from 1,3% to 1,6%, due to the roll-off of non-contributing contracts. 
Net operating earnings improved substantially against the immediately preceding six months performance of AUD8 million.

Revenue for Australia Construction was up by 39% or R1,7 billion to R6 billion (2013: R4,3 billion) due to notable
revenue generation emanating from the Hay Point, Roy Hill and Webb Dock contracts.

As previously reported, McConnell Dowell continues to close out remedial work and undertake demobilisation associated
with the GCRT contract. The process is taking longer than initially anticipated. Given the technical and legal
complexities, it is expected that the commercial negotiations will be protracted, and thus the final outcome remains an 
uncertain and material risk to the Group. The process of lodging, finalising and resolving claims with the affected
counterparties has been intensified.

Overseas Construction performed well in challenging market conditions, despite remaining flat at R1,8 billion compared
with 31 December 2013 due to the shortage of new work secured. Revenue was sourced from the power, marine and transport
sectors in New Zealand, and the transport and oil and gas sectors in South East Asia, particularly in Singapore,
Indonesia and Malaysia.

The Pipelines business unit reported a major decrease in revenue to R1,1 billion (2013: R4,9 billion) as the large
liquefied natural gas pipeline contracts in Queensland reached completion. Construction work on the Australia Pacific
Liquid Natural Gas contract (“APLNG”) was completed in June 2014 and work on the Gladstone Liquefied Natural Gas (“GLNG”)
contract was effectively completed in November 2014. As previously reported, the arbitration process, using the
International Chamber of Commerce rules, for the QCLNG contract is progressing in line with the agreed timelines with no material
change in the status thereof. As noted earlier, the settlement of the remaining portion of the advance payment has been
postponed to the second half of the financial year. It continues to be expected that the commercial negotiations will be
protracted, and thus the final outcome remains an uncertain and material risk to the Group.

The revenue of the Building operation decreased by 40% or R554 million to R841 million (2013: R1,4 billion),
reflecting the tough building market, evident from the lack of new work secured during the reporting period. The Ocean Keys
Shopping Centre was completed in November 2014, leaving the Perth Airport Terminal 1 expansion contract as the largest
contract within the business unit. 

The Tunnelling and Underground operation reported an increase in revenue of 8% or R69 million to R894 million (2013:
R825 million), due to good progress on two significant Metro Down Town Line contracts in Singapore and the Waterview
contract in New Zealand. 

The four months of revenue reported by Electrix of R1,4 billion prior to its sale on 31 October 2014 was 26% or R471
million lower than the comparative period, which included a full six months of sales of R1,8 billion.

Overall, management continued to focus on strengthening contract execution performance.

Construction and Engineering: South Africa and rest of Africa
This operating segment comprises Aveng Grinaker-LTA, Aveng Engineering and Aveng Capital Partners. The results of
Aveng Capital Partners have been reallocated from the Other and Eliminations segment to the Construction and Engineering:
South Africa and rest of Africa segment to more accurately reflect the synergies with Aveng Grinaker-LTA and Aveng
Engineering. Comparatives have been adjusted accordingly.

Revenue remained flat at R4,3 billion due to ongoing activity on the Sishen and Gouda renewable energy projects, the
Nacala and Majuba rail contracts, work on Eskom-related projects and two major private sector building contracts, namely
Mall of the South in Alberton and Sasol Corporate Head Office in Sandton.

Net operating losses for the segment increased by 13% to R229 million against the comparative (2013: R202 million). As
communicated in the trading statement of 11 December 2014, the result was adversely affected by two legacy contracts,
namely the Mokolo contract within Aveng Grinaker-LTA and a water purification contract housed in Aveng Engineering.

Civil Engineering achieved a 21% or R284 million increase in revenue, as a result of the rail-related work on the
Nacala and Majuba Rail Link contracts. 

Other significant operational issues were:
- weather delays and scope changes in the Grootegeluk Cyclic Ponds contract, which delayed completion of the contract
  until the second half of the financial year;
- the aforementioned Mokolo contract, which is estimated to be completed by the fourth quarter of the financial year,
  with maintenance and inspection works continuing for six months thereafter; and 
- labour disruptions experienced on the Majuba Rail Link contract.

Mechanical and Electrical: Revenue decreased by 5% or R49 million to R954 million (2013: R1 003 million). There has
been a significant reduction in the losses within Mechanical and Electrical compared to the comparative period, given the
insufficient margins on the legacy contracts experienced at that time. This was partially offset by additional work on
Eskom’s two new coal-fired power plant contracts. Good progress has been made on the commercial challenges surrounding
the Eskom contracts.

Buildings and Coastal: Revenue decreased by 13% due to the completion of the Cradlestone Mall contract, not
compensated for by the ramp-up of the Mall of the South and Sasol Corporate Office contracts which continue to track well
operationally. The Coastal division has increased revenues compared with the prior period due to the construction of the Audi
Centre in Durban, the Aspen Unit 4 High Containment Suite Facility contract, and the refurbishment of the Pavilion Mall.

Aveng Engineering
Aveng Engineering is responsible for generic engineering services and contract management activities in the water,
power and energy, and minerals sectors. It houses the design and construction of Aveng’s renewable energy interests. The
operating group reports to Aveng Grinaker-LTA effective from 1 July 2014. 

Revenue increased by 19% or R75 million to R477 million (2013: R402 million) due to higher activities on the Group’s
renewable energy projects in the Power business. The Sishen solar energy facility in the Northern Cape was successfully
completed on schedule in December 2014. The Gouda wind energy facility in the Western Cape is on schedule for completion
in June 2015.
 
The lack of production at the Kromdraai modular water treatment facility operated for Anglo American had an adverse
impact on the net operating earnings of the Water business. After changing the process chemistry and the physical
configuration of the plant, it was able to treat the input water at a considerably lower volume and higher cost. This plant was
impaired by R44 million.

Cost optimisation measures implemented during the comparative period continue to be maintained, while the future
positioning of the business continues to receive attention.

Aveng Capital Partners
Aveng Capital Partners is responsible for managing the Group’s investments in South African toll road, real estate and
renewable energy concessions.

Revenue decreased significantly against the December 2013 comparative due to the net success fee earned in the prior
year (R111 million) upon reaching financial close on the Gouda renewable energy project.

Net operating earnings included fair value gains of R83 million on certain renewable and real estate investments
reaching a marketable maturity level.

Mining
This operating segment comprises Aveng Moolmans and Aveng Mining Shafts & Underground.

The segment reported a 14% or R487 million decrease in revenue to R3,0 billion (2013: R3,5 billion). Net operating
earnings decreased by 18% or R54 million to R241 million (2013: R295 million) due to the continued downturn in the mining
and commodity market.

The revenue of Aveng Moolmans decreased by 10% or R260 million to R2,2 billion (2013: R2,5 billion) due to the
non-renewal of three gold-mining contracts in Africa, partially offset by increased activity on existing contracts. The Nkomati
Nickel Mine contract commenced operations in July 2014. Aveng Moolmans continued to record good results.

During the reporting period, the Zambia Revenue Authority issued an additional tax assessment against Aveng Moolmans
following the completion of a mining contract in April 2013. The assessment has been paid to secure the release of the
mining fleet which was impounded by the authorities. Sufficient provision was made for these charges in the previous
financial year. Aveng Moolmans continues to pursue legal and other avenues to resolve this ongoing dispute.

Aveng Moolmans’ portfolio currently spans five commodities mined for seven customers in four countries, with 33% of
work sourced outside South Africa compared with 42% in the comparative period.

The revenue of Aveng Mining Shafts & Underground decreased by 24% or R229 million to R729 million (2013: R956 million)
due to the general downturn in the mining industry and a more selective approach to new work in order to strengthen the
quality of the business unit’s earnings, and mitigate risk by securing longer-term contracts. Net operating earnings
were impacted by margin slippage at some South African contracts.

The business unit continues to experience operational and commercial challenges on the Chuquicamata Copper Mine
contract in Chile. While agreement has been reached in principle and part-payment received for settlement of two outstanding
claims, Aveng Mining Shaft & Underground continues to engage with the client, Codelco, on resolving these and other
matters.

The Kalagadi Manganese Mine contract has made good operational progress and will be completed in the second half of
the financial year.

Sasol’s Thubelisha contract was completed successfully in July 2014, while the Shondoni coal contract progressed
according to expectations. However, Wesizwe’s Bakubung Platinum Mine was negatively affected by production delays as a result
of safety and labour stoppages.

The delay in securing the environmental management plan for Ivanhoe’s Platreef Platinum Mine negatively impacted
revenue and earnings for the period. However, work is scheduled to commence in the second half of the financial year, with
site establishment nearing completion.

Manufacturing and Processing
This operating segment comprises Aveng Manufacturing and Aveng Steel.

Revenue remained flat at R5,3 billion; however, net operating earnings fell significantly by 51% or R83 million to R79
million (2013: R162 million) due to steel sector labour disruptions affecting both operating groups. In the case of
Aveng Steel, this was further compounded by weak demand, low international steel prices, increased price competition, and
restructuring costs to re-align the fixed cost base.            

Aveng Manufacturing
The operating group consists of Infraset, Lennings Rail Services, Aveng A&CS, Facades, Aveng DFC and Duraset.

Aveng Manufacturing’s total revenue remained flat at R1,8 billion against the comparative period. In spite of tough
market conditions and the impact of the aforementioned labour disruptions on Aveng DFC and Duraset, Aveng A&CS, Infraset
and Lennings Rail Services produced good results. 

Aveng Manufacturing Infraset’s revenue increased by 20% as a result of strong demand for precast concrete products in
the southern Africa region, especially in Mozambique and Zambia. South African operations performed well due to the
supply of concrete sleepers and pipes.

Aveng Manufacturing Lennings Rail Services’ revenue increased by 18% against the comparative period as a result of
rail construction contracts for Kalagadi Manganese Mine and the Nacala Section 2 contract, and the ongoing maintenance
contracts for Transnet.

Aveng Manufacturing A&CS revenue decreased by 7% against the comparative period due to a slowdown in capital projects
in the oil and gas markets.

Aveng Manufacturing Facades’ revenue decreased materially by 71% against the comparative period due to the completion
of existing contracts and the lack of new work at the required return levels. Actions relating to its future
repositioning are in process; however, the business unit remained loss-making as a result of cost over-runs. 


Aveng Manufacturing DFC’s revenue decreased marginally by 1% against the comparative period. Foreign operations
continue to perform well, while the South African operations focused on clawing back lost productivity as a result of the
platinum sector labour disruption (a spill-over from the previous financial year). Aveng Manufacturing DFC acquired Atval
Proprietary Limited on 1 July 2014, thereby expanding the Aveng product range into the high-pressure knife-gate valve
market.

Aveng Manufacturing Duraset was particularly affected by the short-supply of inventory as a result of the
aforementioned labour disruptions, resulting in revenue decreasing by 25% against the comparative period. Emerging from a 
difficult 2014, turnaround initiatives were implemented focusing on efficiency improvements and the realignment of the fixed 
cost base of the business.

Aveng Steel
The operating group consists of Aveng Trident Steel, Aveng Steel Fabrication and Aveng Steeledale.

As anticipated, aforementioned labour disruptions had a notable impact on the performance of Aveng Steel. Revenue
remained flat at R3,4 billion against the comparative period, with profitability impacted by labour disruptions, lower
international steel prices, change in product mix, increased competition and restructuring costs. The benefits of integrating
the three businesses continued to materialise. 

Although Aveng Trident Steel’s revenue marginally improved by 2% against the comparative period, its performance was
materially impacted by the steel sector labour disruptions, the inability to effect price increases amid increased
competition, and lower volumes coupled to weak demand. Operating earnings were negatively impacted by once-off restructuring
costs in order to re-align the fixed cost base. 

Encouragingly, Aveng Steeledale’s revenue grew by 15% in an extremely challenging market. With fundamental business
controls and practices having been restored, a reduction in fixed costs implemented, and through the leveraging of Aveng
Steeledale’s competitive advantages of geographic spread and experience in managing construction sites, a turnaround in
profitability was achieved against the operating loss in the comparative period. 

Aveng Steel Fabrication’s ongoing contracts to supply fabricated steel to the Medupi and Kusile power stations
proceeded to plan, albeit at lower productivity levels. The contracts are scheduled to be completed early in the next financial
year. Despite the preservation of the lower cost structure following restructuring initiatives, the low levels of
demand for infrastructure development are anticipated to continue to have a negative impact on the business’ financial
performance. 

Other and Eliminations
The results of Aveng Capital Partners have been reallocated from the Other and Eliminations segment to the
Construction and Engineering: South Africa and rest of Africa segment. Comparatives have been adjusted accordingly.

This segment, which comprises corporate services, corporate-held investments including the property portfolio, and
consolidation eliminations, reflected a net operating earnings increase of R75 million to R139 million (2013: R64 million).
The improved performance is attributable to:
- cost-saving initiatives to reduce the fixed cost base; and
- a change in philosophy regarding the recovery of centralised administration and property rental expenses to better
  reflect the usage of support services by the operating groups.

Two-year order book 
The Group’s two-year order book (excluding Electrix) remained flat at R32,5 billion against the comparative December
2013 position of R32,4 billion, though cyclically down by 12% against June 2014 (R37,1 billion).

The Construction and Engineering: Australasia and Asia operating segment’s order book decreased by 16% or R2,5 billion
to R13,5 billion against the comparative December 2013 position, or 34% down against June 2014, reflective of a weaker
market as a large number of the major contracts are now close to completion without having been replaced. However, the
extent of unsecured work is more significant than anticipated. The order book for Australia Construction decreased
against the comparative period, partially offset by an increase for Overseas Construction, with notable growth experienced in
Southeast Asia. New major contracts awarded include: Bonriki Runway Expansion in Kiribati and Brunei Liquefied Natural
Gas Co-generation plant. The evolution of the order book reflects the objective of diversifying beyond Australia and
commodity-dependent sectors. Prospects include road, rail and ports infrastructure, maintenance contracts and commercial
building projects.

The Construction and Engineering: South Africa and rest of Africa operating segment’s order book of R8,0 billion
remained flat against the comparative December 2013 position, though 8% up against June 2014, due to the awarding of
infrastructure contracts, and rehabilitation contracts for SANRAL and the construction of two major hospitals, being Dr Pixley
Ka Isaka Seme Memorial hospital and Pinehaven hospital. The public sector work contribution in the order book increased
from 20% to 37%. A strong focus exists to diversify into the cross-border markets and to grow further into Africa.
Notable prospects include rail depots and power-related engineering and construction projects in southern Africa.

The combined order book for Aveng Mining increased by 45% or R3,2 billion to R10,3 billion against the comparative
December 2013 position, and 20% up against 30 June 2014, with the South African order book gaining relative to the
non-South African position. The increase is attributable to additional work secured on existing operations, and the award of the
BlackRock horizontal tunnelling development contract within Aveng Mining Shafts & Underground. The non-renewal of
gold-mining contracts has reduced the previous dependency on gold contracts outside South Africa, with platinum, iron ore and
manganese mining gaining at the expense of gold and coal. Aveng Moolmans contributes 64% of the order book, compared to
50% at December 2013 and 68% at June 2014, with 22% currently outside South Africa (December 2013: 47%, and June 2014:
33%). Prospects include shaft-sinking, horizontal tunnelling development and open-cast mining in the South African
platinum sector, and zinc, coal, iron ore and gold in sub-Saharan Africa, though delayed and downscaled as a result of low
commodity prices.

Outlook and prospects
It is expected that the outlook for the Group will be influenced by:
- order book replenishment by McConnell Dowell;
- the anticipation of an improved performance from Aveng Grinaker-LTA;
- generally positive prospects for the Mining and Manufacturing and Processing segments; and
- the realisation of benefits from the cost-saving initiatives already undertaken.

QCLNG and GCRT commercial negotiations remain protracted processes, thus their final outcome continues to be a
material risk to the Group.

The process of disposing of the majority of the Group’s property portfolio in South Africa is well advanced. The
transaction is expected to be finalised in the second half of the financial year.


By order of the Board

AWB Band            HJ Verster
Chairman            Chief Executive Officer

16 February 2015
Jet Park

Corporate information
Directors
AWB Band*# (Chairman), HJ Verster (Chief Executive Officer), EK Diack*#, PJ Erasmus*#, MA Hermanus*#, MJ Kilbride*#, 
AH Macartney (Group Financial Director), JJA Mashaba (Group Executive Director), TM Mokgosi-Mwantembe*#, KW Mzondeki*#, 
DG Robinson^ (Executive Director), MI Seedat*#, PK Ward*#.
(*non-executive) (#independent) (^Australian)    

Company Secretary
Michelle Nana

Business address and registered office
Aveng Park, 1 Jurgens Street, Jetpark, Gauteng, 1620
PO Box 6062, Rivonia, Johannesburg, Gauteng, 2128, South Africa
Telephone: +27 (0) 11 779 2800
Telefax: +27 (0) 11 784 5030

Auditors
Ernst & Young Incorporated
Registration number: 2005/002308/21
102 Rivonia Road, Sandton, Johannesburg, 2194
Private Bag X14, Northlands, 2116, South Africa
Telephone +27 (0) 11 772 3000
Telefax +27 (0) 11 772 4000

Principal bankers
Absa Bank Limited
Australia and New Zealand Banking Group Limited
Barclays Bank Public Limited Company
Commonwealth Bank of Australia Limited
FirstRand Bank Limited
Investec Bank Limited
Nedbank Limited
Standard Chartered Bank Public Limited Company
The Hong Kong and Shanghai Banking Corporation Limited
The Standard Bank of South Africa Limited

Corporate legal advisers
Webber Wentzel
10 Fricker Road, Illovo Boulevard, Illovo, 2196, South Africa
PO Box 6177, Marshalltown, 2107, South Africa
Telephone +27 (0) 11 530 5000
Telefax +27 (0) 11 530 1111

Sponsor
J.P. Morgan Equities South Africa (Proprietary) Limited
Registration number: 1995/011815/07
1 Fricker Road, cnr Hurlingham Road, Illovo, 2196, South Africa
Telephone +27 (0) 11 537 0300
Telefax +27 (0) 11 507 0351/2/3

Registrars
Computershare Investor Services (Proprietary) Limited
Registration number: 2004/003647/07
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107, South Africa
Telephone +27 (0) 11 370 5000
Telefax +27 (0) 11 370 5560

Website
www.aveng.co.za

Date of release : 17 February 2015
Date: 17/02/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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