The past financial year had seen “no material” improvement in South Africa’s infrastructure spending, creating tough operating conditions for construction firm Aveng, the newly- appointed CEO Kobus Verster, said on Tuesday.

Verster said this was also the case in Australia, where the firm has major operations.

He said in South Africa construction and engineering businesses were the hardest hit by worker strikes and “claim challenges” in the first six months.

However, the company’s business portfolio across other parts of Africa saw an increase in revenues by 11 percent to R4.2 billion ($391m) on the back of new major contracts that were kick-started at Aveng Grinaker-LTA and the increased action in renewable energy projects at Aveng Engineering.

Total group revenue for the second half of the financial year lifted 11 percent to R27.6 billion ($2,4bn) from R24.9 billion ($2,3bn).

Verster said in the second half of the year, Aveng was major focus is repositioning the group.

“Through various interventions we have started to lay the foundation from which the Group can strengthen its focus and optimise its performance,” Verster said.