Aveng delivers strong H1 results

Engineering-led infrastructure and resources group, Aveng, has experienced a remarkable turnaround with a 15 per cent revenue jump for the six months ending in December 2022. In an exclusive interview with CNBC Africa, Sean Flanagan, the Chief Executive Officer of Aveng, shed light on the company's recent success and its future prospects. Flanagan highlighted Aveng's higher earnings for the fifth consecutive year, a growing top line, and a significant reduction in debt to R353 million. The CEO expressed confidence in Aveng's improved balance sheet, emphasizing that the company is now in a much better position than it was in the past 80 years. He attributed this success to strategic changes and the strength of Aveng's two key businesses, McConnell Dowel and Millmans. Flanagan indicated that the company is looking to leverage its robust balance sheet to further grow these core businesses. One of the key themes discussed during the interview was Aveng's focus on expanding its presence in Australasia, with McConnell Dowell currently being the largest revenue driver for the company. While acknowledging the skew towards Australasia, Flanagan affirmed that Aveng aims to enhance the top line in Millmans by pursuing opportunities in Eastern and Southern Africa. The CEO revealed that Millmans, with over 60 years of experience, is exploring lucrative contracts in West Africa's gold sector, as well as potential ventures in Namibia and Zimbabwe, particularly in platinum mining. Regarding Aveng's approach to new opportunities, Flanagan clarified that the company's expansion strategy does not primarily involve acquisitions but rather entails leveraging existing assets, equipment, and expertise in collaboration with local partners. He emphasized the importance of selecting the right partners on a case-by-case basis to ensure successful project execution. Flanagan also highlighted Aveng's significant work on hand, with a substantial order book in McConnell Dowell and opportunities across various sectors such as iron ore, zinc, and rehabilitation work in the coal sector. The interview also delved into the challenges faced by Aveng in recruiting skilled labor. While Australia and New Zealand grapple with a shortage of resources due to low unemployment rates, South Africa faces a different dilemma of skills scarcity. Flanagan underscored the company's commitment to training and upskilling local talent, including initiatives to recruit women in dump truck operations and artisan development programs. Aveng's proactive approach to addressing skills shortages aligns with its broader strategy of building a sustainable workforce. In conclusion, Aveng's strong H1 results underscore the company's resurgence and strategic initiatives to drive growth and profitability. With a solid financial foundation, a focus on core businesses, and a commitment to developing skilled talent, Aveng is well-positioned to capitalize on emerging opportunities in the infrastructure and resources sector. The company's transformation journey reflects resilience, adaptability, and a vision for sustainable long-term success in a dynamic market landscape.