Aveng : trading statement

The Group expects basic earnings per share ('EPS') and headline earnings per share ('HEPS') for the year ended 30 June 2017 to be substantially more than 20% lower than the basic EPS loss of (25.4) cents and basic HEPS loss of (75.2) cents reported for the previous comparative period.

This follows continued weak market conditions for the South African businesses, operational underperformance and accelerated claims settlements at McConnell Dowell, an increased net interest expense as well as the impact of previously reported settlements and the agreement concluded with the South African government.

Shareholders are advised that a further trading statement will be released as soon as there is a reasonable degree of certainty as to the likely range by which the Group's EPS and HEPS are expected to decrease.

QCLNG update

As previously announced, the arbitration hearings have been completed. The finding of the Tribunal is awaited and Aveng expects that an award is likely to be reported within the current financial year's reporting cycle.

Other claims

Aveng continuously reassesses the position recognised on all its recorded uncertified revenue. The Group has noted increasingly difficult, litigious and costly processes in bringing long outstanding claims to commercial conclusion. Despite the unchanged view of the merits of its existing claims, management is in the process of evaluating previously recognised uncertified revenue considering the abovementioned conditions. This may result in the derecognition of certain previously recorded uncertified revenue. Such an adjustment may lead to a further reduction in earnings beyond currently anticipated results. The Group will continue to robustly pursue its commercial entitlements in relation to these claims.

Shareholders are therefore advised to continue to exercise caution when dealing in their Aveng securities until a further announcement is made.