Australian dollar banknotes. File: Reuters
THE market gave Aveng a round of applause after a robust interim trading update yesterday, which saw its shares gallop nearly 15% higher to R 7.10 on the JSE.
Construction firm Aveng, which has evolved into a business with two operating subsidiaries, McConnell Dowell and Moolmans, said that for the six-month period ended December 31, 2023, Aveng revenue was anticipated to increase by 45% with improved operating earnings at both McConnell Dowell and Moolmans.
Earnings from continuing operations were also expected to improve as compared to the prior comparative period by between 110% and 120%. Headline earnings for the current period are expected to improve by between 72.7% and 81.1%.
Aveng also informed its shareholders that the predominant transactional currency of the group was now the Australian dollar, with 91% of its revenue sourced from outside South Africa, and no longer the rand.
“The board believes that Australian dollar financial reporting provides more relevant presentation of the group's financial position, funding and treasury functions, financial performance and its cash flows.
“Based on the above, Aveng has elected to change its reporting currency from the South African rand (ZAR) to the Australian dollar (A$), with such change being implemented for the reviewed interim condensed financial statements at 31 December 2023,” it noted.
The functional currencies of the group's underlying businesses remained unchanged, it said.
Foreign exchange exposures would also be unaffected by the change, albeit that the effects of such exposures would be presented in Australian dollars.
The group expects to release its reviewed results for the six-month period ended December 31, 2023 on or about February 20.
BUSINESS REPORT