Aveng has announced that Scott Cummins will retire as group chief executive and director, effective from 30 January. The engineering and infrastructure firm has selected David Simpson to serve as interim chief executive and director from that date. This leadership shift occurs amid ongoing efforts to stabilise operations in a challenging sector. As reported by Business Day, the board has engaged external advisers to identify a permanent successor, a process expected to extend over several months given the complexity of the role.
Cummins assumed the chief executive position in March 2024, succeeding Sean Flanagan upon his retirement. Prior to that, he led Aveng’s key subsidiary, McConnell Dowell, since joining in 2015, and he became a board member in November 2023. His tenure has navigated significant restructuring, including decisions on asset management in response to market pressures. The company operates in a South African construction landscape marked by high input costs and subdued private investment, which have influenced strategic choices.
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Simpson brings extensive experience in legal, commercial, and management fields, having guided organisations through periods of expansion, restructuring, and change. His career spans engineering, construction, maintenance, and consulting services across infrastructure, road, rail, resources, and industrial sectors. In his interim role, he will prioritise enhancing operational efficiency and profitability, fostering growth opportunities, and addressing outstanding contractual disputes to strengthen the firm’s position.
To ensure continuity, Cummins will remain available to support Simpson during the handover, particularly on resolving major commercial claims. This arrangement aims to minimise disruptions in ongoing projects. The board has expressed appreciation for Cummins’ contributions, first at McConnell Dowell and later as group chief executive, highlighting his role in steering the company through recent transitions.
In July, Aveng opted to maintain ownership of McConnell Dowell after evaluating alternatives such as a merger, sale, or separate listing. The subsidiary, which forms the core of the infrastructure division, operates in Australia, New Zealand and Pacific Islands, and Southeast Asia. For the year ended June, it generated revenue of A$1.9 billion, down from A$2.4 billion the prior year, reflecting broader industry headwinds including project delays.
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According to CNBC Africa, Aveng recorded a headline loss of A$84.6 million for the 2025 financial year, contrasting with a profit of A$38 million previously. This reversal stemmed primarily from cost overruns and setbacks on the Kidston Pumped Hydro project in Queensland and the Jurong Regional Line in Singapore. Meanwhile, negotiations for the sale of the Moolmans mining business in South Africa persist, involving thorough due diligence with the selected buyer.
According to ResearchAndMarkets, the South African construction industry faces a projected contraction of 2 per cent in 2025 due to escalating costs and reduced private spending, though recovery is anticipated with average annual growth of 3.6 per cent from 2026 to 2029, bolstered by public investments in renewable energy and infrastructure. Aveng entered the 2026 financial year with A$3.2 billion in secured work, positioning it to capitalise on these trends, with interim results scheduled for release on 24 February.