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| COMMENT |
Reunert grew revenue
by 19% to R4,65 billion in the first six
months to 31 March 2007 over the comparative
period in 2006. Operating profit improved
by 16% from R524 million to R607,6 million.
Depreciation charges increased as a result
of higher capital expenditure to provide
for a stronger demand in infrastructure
related projects. Interest income, compared
with the same period a year ago, declined
due to the payment of a special dividend
in December 2006. Net profit attributable
to Reunert shareholders increased from R411,8
million to R516,9 million before accounting
for share-based payment charges relating
to the BEE deal and the issue of shares
to employees.
Operational results were characterised by
strong performances from the Electrical
Engineering, Defence and Telecommunications
businesses. Electronics, and in particular,
the Consumer Products segment, were affected
by the gradual slowdown of spending in the
consumer market. Office Systems had the
benefit of a performance bonus on the finalisation
of the discounting deal in the finance company. |
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| ELECTRONICS |
Nashua , the office automation
business, took over management responsibility
for Acuo Technologies, our high-tech computer
science and networking activity based in
Stellenbosch. Although dilutive in the short
term, the benefits to Nashua customers are
already evident.
Consumer Products and Services were adversely
impacted by slow sales of consumer electronic
products. Margins are under constant pressure
and unlikely to improve in the near term.
Cellular activity at Nashua Mobile continues
at an acceptable level amid signs of increased
competition for high-value customers. The
provision of data services, to a certain
extent, offset this negative trend.
Telecommunications, represented by our 40%
interest in Siemens Telecommunications,
performed well on ongoing strong demand
from its major customers. The second network
operator should fuel demand for the products
and services of this company in the future.
The Defence division, Reutech, is well positioned
for superior performance this year and going
forward. Strategic repositioning is nearing
completion and bodes well for the future. |
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| ELECTRICAL ENGINEERING |
| Electrical Engineering
experienced strong growth in revenues. Demand
is expected to increase, as is competition.
Emphasis is on efficiency and streamlining
of distribution and sales networks. |
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| CORPORATE ACTIVITIES |
Effective 1 February
2007, the telecommunications cable business,
ATC, was merged with that of Aberdare. Market
conditions improved materially and, despite
sharing 50% of profits going forward, the
deal is expected to be earnings enhancing.
Quince Capital, the venture with PSG in
financial services, became effective 1 May
2007.Access to ongoing funding has been
put in place and the business is poised
for growth. The transaction is expected
to marginally dilute financial performance
over the next 12 to 18 months.
The BEE deal in which a 10% stake in Reunert
has been sold to the Rebatona Educational
Trust and Peotona has been fully implemented
and the financial statements reflect the
cost thereof.We are confident that tangible
value will be added by this partnership. |
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| PROSPECTS |
Growth in normalised
headline earnings per share for the full
year is anticipated to be in line with the
increase achieved in the first six months.
This statement has not been audited or reviewed
by the external auditors. |
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| DIVIDEND |
| Notice is hereby given
that interim ordinary share dividend No
162 of 73 cents per share (2006: 63 cents
per share) has been declared by the directors
for the six months ended 31 March 2007.In
compliance with the requirements of STRATE,
the following dates are applicable: |
| Last date to trade
(cum dividend) |
Friday,
15 June 2007 |
| First date of trading
(ex dividend) |
Monday,
18 June 2007 |
| Record date |
Friday,
22 June 2007 |
| Payment date |
Monday,
25 June 2007 |
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Shareholders may not
dematerialise or rematerialise their share
certificates between Monday, 18 June 2007
and
Friday, 22 June 2007, both days inclusive.
On behalf of the board |
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Martin
Shaw
Chairman
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Gerrit
Pretorius
Chief executive
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| Sandton, 17 May 2007 |
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| REUNERT LIMITED |
Incorporated in the Republic
of South Africa (Registration number 1913/004355/06)
Share code: RLO ISIN code:
ZAE000057428 |
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Directors:
MJ Shaw (Chairman)*, G Pretorius
(Chief Executive), BP Connellan*, KS Fuller*,
BP Gallagher, SD Jagoe*, KJ Makwetla*,
KC Morolo*, GJ Oosthuizen, DJ Rawlinson,
Dr JC van der Horst*
*Non-executive |
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Registered
office:
Lincoln Wood Office Park
6 – 10 Woodlands Drive, Woodmead,
Sandton
PO Box 784391, Sandton, 2146
Telephone +27 11 517 9000 |
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Transfer
secretaries:
Computershare Investor Services 2004 (Pty)
Limited
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107 |
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| Sponsor:
Rand Merchant Bank (A division
of FirstRand Limited) |
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| Secretaries’
certification: |
| In terms of Section 268
G(d) of the Companies Act, 61 of 1973, as
amended, I certify that, to the best of
my knowledge and belief, the company has
lodged with the Registrar of Companies for
the six months ended 31 March 2007 all such
returns as are required by a public company
in terms of the Companies Act and that all
such returns are true, correct and up to
date. |
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| JAF Simmonds |
For Reunert Management
Services Limited
Company Secretary |
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| Enquiries: |
Carina de Klerk +27 11
517 9000 or e-mail invest@reunert.co.za.
For background information on Reunert visit
our website at www.reunert.com.
Hierdie verslag is ook in Afrikaans beskikbaar. |
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