Aveng says it is in a strong cash position

AVENG, Africa's largest construction firm by market value, said its order book had expanded despite projects relating to the Soccer World Cup ending and said it had cash on hand to finance its growth plans.

AVENG, Africa's largest construction firm by market value, said its order book had expanded despite projects relating to the Soccer World Cup ending and said it had cash on hand to finance its growth plans.

Announcing a 49,5 percent drop in first-half earnings, the South Africa-based group, in charge of building the Soccer City Stadium in Johannesburg, which will host the World Cup final, said its two-year order book had risen 8 percent to R32,7billion.

It said its strong cash position made it well placed to win new business and said it had around R3billion on its balance sheet to help it seek new growth opportunities.

To bid for large infrastructure projects companies have to put up a big performance bond. At this point lenders are reluctant.

"We don't have to approach banks to assist us with bonding capacity," Roger Jardine, Aveng's chief executive, said. - Reuters

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