Dear shareholder,
During the year to 30 September 2007, normalised headline earnings grew 15% per share to 570,3 cents per share. Revenue increased by 16% to R9,6 billion, but operating profit showed a modest increase of only 4% to R1,3 billion. The contribution from associates, mainly our 40% shareholding in NSN, rose by 56% to R148 million.

Having distributed R879 million by way of ordinary (R526 million) and special (R353 million) dividends, year-end cash was R483 million. Capital expenditure of R149 million was allocated mostly to improving efficiencies or adding new product lines. Working capital changes absorbed R439 million to fund the higher levels of activity.

We completed the strategic realignment of the group, initiated two years ago, with the creation of Nashua Electronics to house our consumer electronics activities. All our businesses will now be housed under the banners of CBI-electric, Nashua or Reutech complemented by our associate investments in telecommunications and financial services.

Our empowerment transaction with Peotona and the Rebatona Educational Trust was finalised in the first half of the year. It is a significant milestone in Reunert’s history. Ms Thandi Orleyn has been appointed to the board and we welcome her as Peotona’s representative.