Aveng earns nearly half of revenue outside SA

Wednesday 9th October, 2002
Aveng is close to achieving its target of generating half of its revenue from operations outside southern Africa. In the past financial year to 30 Jun 02, the company grew its revenue from 35% to 45%. This was up from 3% in 1998. Aveng CE Carl Grim said the group could achieve its 50% target within one or two years. Group revenue stands at R13bn, of which 18% came from operations in Australia and South East Asia. Revenue from these areas was generated by Australian-based construction company McConnell Dowell, in which Aveng has a 63% shareholding. About 27% of revenue came from operations in Africa and the Middle East. Activities outside southern Africa were mainly in the field of construction, as opposed to steel and allied activities, which is the other main sector in which Aveng is involved. Growth beyond southern Africa is in line with the group's policy of spreading or balancing risk. The group's growing international clout has been illustrated by Grinaker LTA (the largest construction division within Aveng) having moved from 50th to 46th position in the recently published ENR Top 225 international contractors list for 2001. Rankings are based on the amount of revenue generated outside of the company's home country.