Highlights and overview > Our investment case


The Group has a solid foundation from which to expand into areas where it can achieve a competitive advantage, grow its revenue streams and leverage synergies across its businesses.

It has identified the critical pathways to achieving its long-term growth and leadership objectives and is mindful that sustainable success is dependent on a culture which prioritises people, pursues world-class safety standards and takes a proactive approach to managing risk, governance and compliance.

Key success factors


Critical mass

The Aveng Group engages in activities across the construction, engineering, mining, manufacturing and steel processing value chain. Collectively, this portfolio of businesses provides balance while the construction assets are well positioned to benefit from the long-term infrastructure investment trend in target markets. The Group has strong order books and solid business models. The breadth of its business activities ensures that the fundamentals are in place for The Aveng Group to continue showing growth in the long term, thereby tempering the underperformance of the manufacturing and processing activities, which have been most affected by the economic downturn.

The Aveng Group has the capability to deliver complex multi-disciplinary projects for clients across all sectors of the economy from national government to state-owned entities and local government, mining houses and financial institutions to multi-national industrial companies.

With roots in South Africa, The Aveng Group works actively in more than 25 countries across Africa, Australasia, the Pacific region and the Middle East. The Group employs more than 30 000 people who have the capacity and skill-set to participate in multi-billion Rand opportunities. Over the past five years, Aveng has invested capital expenditure of more than R6,7 billion in plant and equipment. Its two-year construction order pipeline has shown 18% growth from R25,8 billion to R30,4 billion in June 2009.

Track record

Aveng boasts a proud South African heritage dating back more than a century to a small construction Company in Johannesburg. Since then, The Aveng Group Companies have played a major role in infrastructure development, including many landmark roads, bridges, dams, buildings and power stations in many developing economies.

Over the past five years, Aveng has shown rapid organic growth with revenue increasing by 20% per annum, from R13,5 billion in 2005 to R33,8 billion in the 2009 financial year. Headline earnings have grown from R323,2 million to almost R2,1 billion over the same period, showing a five-year average annual growth of 45%. The than tripled, from 2,1% to 6,3% as it continually focuses on maximising the profitability of all its businesses.

Financial strength

Aveng had an ungeared balance sheet at the end of the 2009 financial year, with positive net cash balances of R7,4 billion. In the current economic climate this positive cash balance equips The Aveng Group to capitalise on opportunities in the infrastructure value chain.

Aveng has an impressive record of solid cash generation from operating activities showing R3,0 billion in June 2009, a growth of 54% per year since 2005. A leading indicator of future profitability in the construction environment, Aveng’s strong ability to convert profits into cash, shows the Group’s ability to continue delivering value for shareholders.

The Aveng Group has consistently paid dividends, with a historic dividend cover ratio of four times.

Leading from the centre

Aveng’s direction for the Group and its operations. The Corporate Centre drives capital allocation decisions, acquisition activities, cost improvement initiatives, world-class safety practices and talent development.

Continuous improvement

The Aveng Group’s experienced, each with in-depth knowledge and experience of their target markets and industries. These teams will intensify their focus on meeting strict financial and operational targets.

Aveng is focused on increasing the profitability of its businesses to maximise its return potential. The emphasis is on sustaining the turnaround of Grinaker-LTA, increasing Moolmans’ efficiencies at Trident Steel and Aveng Manufacturing.

Prioritising people

Aveng’s capitalise on a deep pool of skills. Continued attention will be given to accelerate talent development, retention and the attraction of skilled people.


  • The current business portfolio will be managed to generate and extract more value for shareholders.
  • Higher return growth generating businesses in the infrastructure value chain including power, environmental services and concessions will be pursued.


In order to meet its long-term growth objectives, the Group plans to expand into higher return growth generating businesses throughout the infrastructure value chain, by industry and geography. Although Aveng already has significant critical mass in these areas, there will be further expansion into the segments which present attractive, long-term prospects. These include power, environmental, transport and Corporate Centre takes a leading role in setting strategic concessions. Regionally, Aveng’s South Africa and Australia. The Group will, however, also pursue opportunities to strengthen its footprint in other developing markets, particularly in the rest of Africa and the Middle East.

In order to extend its competitive advantages, Aveng will continue to focus on leveraging Group synergies and economies of scale. Optimising the business model will ensure that greater economic value is added by the operating groups, leveraging Aveng’s ability to deliver value to its shareholders.