| Audited Results for the year ended 30 September 2000 |
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| H I G H L I G H T S |
- Comparable headline earnings per share +31%
- Comparable operating Profits +30%
- Dividend per share +31%
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| R E V I E W O F R
E S U L T S |
The Reunert board is pleased to announce excellent results
for the year ended 30 September 2000. The strategic refocusing of the group was completed
during the 1999 financial year, and included the sale of Telephone Manufacturers of South
Africa, electrical engineering company Alstom and the mechanical defence operations. As a
result, Reunert's exposure to low-margin businesses has been significantly reduced.
The pro forma 1999 numbers are given as they enable a
direct comparison of Reunert's core operations to be made.
Turnover on a comparable basis grew by 20%, while operating
profit improved from R188,6 million to R244,6 million. The operating margin improved from
7,1% to 7,7%. For comparative purposes 1999 interest received has been reduced by R83,3
million which reflects the before-tax interest that was earned on cash held to pay the
R568 million once-off special dividend (R2,50 per share) to shareholders in October 1999.
Attributable profit from ongoing operations increased by
35% to R286,2 million and headline earnings per share by 31% to 140,7 cents per share.
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| R E V I E W O F O
P E R A T I O N S |
Electronics
Nashua Office Automation performed strongly. The merger
of Nashua Cellular with Nedcor's cellular business to form Nashua Nedtel Communications
was completed in July this year. The new business is performing well and is expected to
have a positive impact on future earnings.
Reutech showed excellent growth on the back of strong
exports. The radar company was successful in negotiating a radar order of R250 million
which will be delivered over the next five years.
Severe competition, continuing grey imports and a shift in
spending patterns had a negative impact upon Panasonic's Consumer profits. The business is
being restructured to take account of the changed environment. The improvement in the
Business Systems activities continued resulting in much improved earnings.
Telecommunications produced another strong performance as a
result of good orders from Telkom and Vodacom. They had a very successful year in
supplying GSM systems and infrastructural equipment into Africa and is now the market
leader in GSM Equipment supply to Africa.
Electrical engineering and cables
Circuit Breaker Industries performed well. Emphasis on
exports continues and the results of the marketing drive into the USA have been rewarding.
ATC increased its supply of copper telecommunications cable
to Telkom in the second half of the year. The worldwide shortage of optical fibre has
resulted in record ATC fibre exports.
African Cables' performance improved off a low base. The
acquisition of Rosslyn Cables has enhanced African Cables' product offering and
competitiveness.
Financial services
The reduction in interest rates resulted in a decrease in turnover in the finance company
for the year. Future business volumes are expected to increase.
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| P R O S P E C T S |
The group's operations are entering the new financial year
with strong order books. Growth in exports of high technology products, coupled with
increasing emphasis being placed on providing solutions to our customers, should ensure
acceptable growth in headline earnings per share.
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| D I V I D E N D |
Notice is hereby given that a final dividend (number 149)
of 56 cents has been declared by the directors. The dividend is payable to ordinary
shareholders registered in the books of the company on 1 December 2000. Payment will be
made in South African currency on or about 26 January 2001. The transfer and share
registers will be closed from 4 December to 15 December 2000, both days inclusive.
On behalf of the board
| D E Cooper |
G Pretorius |
| Chairman |
Chief Executive |
| Sandton, 15 November 2000 |
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|
| F I N A N C I A L R E S U L T
S |
The results for the year ended 30 September
2000, are set out below:
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| R E U N E R T L I M I T E D |
Incorporated in the Republic of South Africa (Reg No
1913/004355/06)
Directors:
D E Cooper (Chairman)*, G Pretorius (Chief Executive), B P Connellan*, P T W Curtis*, B P
Gallagher, S D Jagoe*, K J Makwetla*, G J Oosthuizen, D J Rawlinson, C L Valkin*, Dr J C
van der Horst* *(non-executive)
Registered office:
Lincoln Wood Office Park, 6 – 10 Woodlands Drive, Woodmead, Sandton
PO Box 784391, Sandton, 2146
Telephone (011) 804-5888
Transfer office:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
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