AVENG LIMITED - Trading statement and operational update

Trading statement and operational update

AVENG LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1944/018119/06)
ISIN: ZAE000302618
SHARE CODE: AEG
("Aveng" or "the Group")


TRADING STATEMENT AND OPERATIONAL UPDATE


TRADING STATEMENT

This trading statement is in accordance with paragraph 3.4 (b) of the JSE Listings Requirements, which
requires issuers to publish a trading statement as soon as they are satisfied that a reasonable degree
of certainty exists that the financial results for the period to be reported on will differ by at least 20%
from those of the prior comparative period.

Shareholders are hereby advised that a reasonable degree of certainty exists that the results for the
year ending 30 June 2025 will be lower than the comparable period and that the Group will report a loss
for the full year (on both a per share and a headline per share basis, in comparison to the earnings per
share of A$20.0 cents and headline earnings per share of A$29.6 cents in the prior period). As
described in the results for the six months ended 31 December 2024, this stems primarily from the
Kidston Pumped Hydro project and the Jurong Regional Line (J108) project. The rest of the portfolio of
Infrastructure projects continue to perform, however, the segment will report a loss for the second half,
albeit at a lower level than the first half.

The trading statement will be updated to provide more accurate ranges once the year end financial
statement close processes are sufficiently advanced to provide reasonable certainty as to the outcome.

The financial information on which this trading statement is based has not been reviewed or reported
on by the Group's auditors.

OPERATIONAL UPDATE

Aveng delivers its projects through three operating brands in three distinct segments. The Infrastructure
segment, branded McConnell Dowell, operating in three geographical regions – Australia, New Zealand
& Pacific Islands and Southeast Asia; the Building segment, branded Built Environs, operating in New
Zealand and the Australian states of Victoria and South Australia and the Mining segment branded
Moolmans, operating in South Africa.

Infrastructure
The New Zealand & Pacific Islands business unit continues its strong performance during the second
half of the year. The business unit expects to report continued strong profitability although margins will
soften compared to those reported in the first half. Operating profit is expected to reflect an improvement
on the comparative period, being the prior year.

The Australia business unit reported a break-even result in the first half, driven by increased forecast
cost to complete and a resulting loss on the Kidston Pumped Hydro project in Queensland. During the
second half, progress on the project has continued to face pressure and was hampered by the impacts
of a persistent tropical low-pressure system in the area, leading to severe flooding across the region.
Achieving estimated productivities has continued to be a challenge as a consequence of both the
disruption and the complex nature of the work. As a result of the events in the period, the programme
to completion has been extended by a number of months and the estimated cost to complete the project
has increased. The Australia business unit recognised a further loss on this project in the period. Many
of the issues facing the project and leading to additional costs and delays are beyond the control of the
project and are the subject of commercial claims and negotiations with the client.

Two other projects in Queensland were impacted by the significant rainfall and flooding during the
period, leading to commercial claims and adjustment to project profitability.

The New Bridgewater Bridge was officially opened by the Prime Minister of Australia, the Honourable
Anthony Albanese MP and the Premier of Tasmania, the Honourable Jeremy Rockliffe MP on Sunday,
1 June 2025. The New Bridgewater Bridge was the largest current project in McConnell Dowell's
Infrastructure portfolio with a contract value in excess of A$630 million.

The Australia business unit continues to deliver profitably across its portfolio of projects excluding the
Kidston Pumped Hydro loss-making project. Following the recognition of the further loss at Kidston, the
Australia business unit will report an operating loss for the year.

In Southeast Asia, the Jurong Region Line (J108) project for the Land Transport Authority in Singapore
continues to achieve project milestones in line with the revised project plan and at expected cost.

Building
Built Environs is expected to continue its profitable performance and is expected to report growth in its
operating earnings as compared to the comparative period.

Mining
Moolmans concluded a new 60 month contract with Black Mountain Mining (Pty) Ltd at its Gamsberg
zinc mine during the period and ramp-up operations continue, including increased production supported
by the delivery and commissioning of new equipment.

The contract performance of the Tshipi project continues to be managed closely and a number of
contactual claims are being pursued with the client.

MARKET OUTLOOK

Improving trading conditions generally continue to be observed across the Infrastructure and Building
segments, albeit against a backdrop of uncertainty associated with geo-political tensions and
increasingly protectionist global trade policies.

Aveng is the preferred or sole-source bidder on more than A$2 billion of new work, with approximately
half of this expected to be awarded by the end of Q1 FY26. This will augment the A$1.2 billion new
work secured to date in the period.

STRATEGY UPDATE

The Group strategy is to enhance stakeholder value and maximise value to shareholders through
improved operational performance and the creation of two independent and separate entities.

Negotiations for a sale of the Moolmans business continue with interested parties who present strong
BEE credentials.

The Group continues to explore a range of options for the separation of McConnell Dowell. These
include a merger with a third party, a partial or outright sale or a separate independent listing.

The Group expects to release its reviewed results for the year ending 30 June 2025 on or about 19
August 2025.


9 June 2025
Boksburg, South Africa

JSE Sponsor
Valeo Capital (Pty) Ltd

Edinah Mandizha
Company Secretary
Tel: 011 779 2800
Email: Edinah.mandizha@avenggroup.com

Executive Directors
SV Cummins (Group Chief Executive Officer) | AH Macartney (Group Finance Director and Chief
Financial Officer)

Non-Executive Directors
PA Hourquebie (Independent Non-executive Chair) | B Modise (Independent Non-executive) | N Bowen
(Independent Non-executive) | SJ Flanagan (Non-executive) | BC Meyer (Independent Non-executive)
| D Noko (Independent Non-executive)
Registered office
Rose Avenue, 2 Merlin Drive, Parkhaven – Boksburg, Gauteng 1459

Forward looking statements

Certain statements in this document are not reported financial results or historical information but forward-looking statements. These include but
not limited to statements about the Group's operations, financial conditions, earnings, and growth prospects. They are based on the best estimates
and information of Aveng at the time of writing. They are nonetheless subject to significant uncertainties and contingencies, many of which are
beyond the control of the Group.
Unanticipated events may occur, and actual future events may differ materially from current expectations due to changes in priorities by the Group,
engagement with clients, suppliers, external auditors and other stakeholders.

Date: 09-06-2025 02:10:00
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