| COMMENTARY |
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| Headline earnings per share increased by 51% from 184 cents to 278 cents.
This significant improvement stems from good performances by the group’s
managed operations and a return to profitability at Siemens Telecommunications. |
| |
| Strong cash generation during the year enabled the company to propose
a share buyback to shareholders of 10% of the issued shares in the company
through which the company returned R477 million to shareholders during September
2004. Dividends declared (excluding the dividend portion of the share buyback)
for the year have increased by 33% to 160 cents per share. |
| |
| Review of operations |
| ELECTRICAL ENGINEERING |
| Divisional turnover grew 7% to R1,5 billion and operating profit by 11%
to R217 million. African Cables benefited from strong demand for energy
cable. The building boom has resulted in increased demand on South Africa’s
electrical distribution infrastructure with the power cable network being
upgraded in large parts of the country. Equipment is being installed at
African Cables to increase capacity. |
| |
| Circuit Breaker Industries also benefited from the strong demand and increased
sales volumes and operating profits. Export sales have grown and the recent
acquisition of Heinemann Australia will provide the necessary base for growth
in that region. |
| |
| ATC continues to operate in a subdued market but operating results improved
considerably during the year. The company was awarded part of the Telkom
optical fibre contract and as costs are largely fixed, any increase in volume
will result in improved profitability. |
| |
| ELECTRONICS |
| The electronics division increased operating profits by 71% to R656 million
on a similar turnover to that achieved in the previous year. |
| |
| The market for office automation equipment has remained strong and market
share gains have been made in the competitive laser colour printer market.
Office systems represented by Nashua and its associated finance company
reported a 44% increase in operating profit. RC & C Finance Company
sold its rental book in December 2003 which also contributed to this improvement.
|
| |
| Consumer products and services increased turnover by 6% to R3,4 billion
with a 44% increase in operating profit. The improvement was mainly due
to the turnaround at Reunert Consumer and Commercial Holdings. Improved
inventory management greatly reduced the risks associated with currency
fluctuations. The multi-brand strategy has also enabled the operation to
service the entire consumer electronic market. |
| |
| Nashua Mobile had another good year with contract subscribers increasing
to 361 000. |
| |
| TELECOMMUNICATIONS |
| Associate company Siemens Telecommunications returned to profitability
this year with a very strong performance. Order intake has remained high
and the prospects in both fixed line and wireless business are encouraging.
The company has been selected to roll out Africa’s first 3G network
with switch-on anticipated in December 2004. |
| |
| REUTECH |
| Reutech’s performance has been disappointing with operating profit
reducing from R118 million in 2003 to R49 million. Order intake this year
did not meet expectations with both exports and profit being negatively
affected by the strong rand. |
| |
| Prospects |
| The board is confident that Reunert will achieve continued earnings growth
in the new financial year. Focus remains on ensuring longer-term sustainable
growth in headline earnings per share. |
| |
| Dividend |
| Notice is hereby given that a final dividend No. 157 of 120 cents per
share (2003: 88 cents per share) has been declared by the directors for
the financial year ended 30 September 2004. In compliance with the requirements
of STRATE, the following dates are applicable: |
| |
| Last date to trade (cum dividend) |
Friday, 14 January 2005 |
| First date of trading (ex dividend) |
Monday, 17 January 2005 |
| Record date |
Friday, 21 January 2005 |
| Payment date |
Monday, 24 January 2005 |
|
| |
Shareholders may not dematerialise or rematerialise their holdings of
Reunert shares between Monday,
17 January 2005 and Friday, 21 January 2005, both days inclusive. |
| |
| ON BEHALF OF THE BOARD |
|
| Derek Cooper |
Gerrit Pretorius |
| Chairman |
Chief Executive |
| |
|
| Sandton, 15 November 2004 |
|
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|
|
| Secretaries’ certification |
| For the year ended 30 September 2004 |
| The company has lodged with the Registrar all such returns as are required
by a public company in terms of the Companies Act. |
| |
| RG Drakes |
For Reunert Management Services Limited
Company Secretaries |
| |
| Reviewed results |
| The above results have been reviewed by the group auditors, Messrs Deloitte
& Touche, and a copy of their unqualified review report is available
for inspection at the company’s registered office. |
| |
| 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 Bank Limited) Corporate
Finance |
| |
| Die verslag is ook in Afrikaans beskikbaar. |
| |
| 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
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