• Headline earnings per share +14% 
• Dividend per share +7%

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		Six months ended 31 March			Year ended 30 Sept
	Notes	2003 R million    (Unaudited)	2002 R million    (Unaudited)(8)	%    change	2002 R million    (Audited)(8)
Revenue		3 047,5	2 469,4	23	5 062,9
Earnings before interest, tax, depreciation
and amortisation (EBITDA)		380,5	242,9	57	559,7
Depreciation		22,1	23,8	(7)	46,2
Amortisation of goodwill		25,1	14,0		41,4
Operating profit	1	333,3	205,1	63	472,1
Net interest and dividend income	2	21,2	15,5	37	36,5
Profit before abnormal item		354,5	220,6		508,6
Abnormal item	3	-	-	-	(18,7)
Profit before taxation		354,5	220,6	61	489,9
Taxation		124,8	79,2	58	177,3
Profit after taxation		229,7	141,4	62	312,6
Share of associate companies’ profits (losses)/profits			(21,3)	48,3	89,6
Profit after tax including associate companies		208,4	189,7	10	402,2
Earnings attributable to outside shareholders in
subsidiaries		16,4	14,5	13	31,6
Earnings attributable to ordinary shareholders
in Reunert Limited		192,0	175,2	10	370,6
Basic earnings per share (cents)	4	102,1	93,7	9	198,1
Diluted earnings per share (cents)	4	100,6	92,0	9	194,6
Headline earnings per share (cents)	5	115,4	101,2	14	229,8
Diluted headline earnings per share (cents)	5	113,6	99,2	14	225,4
Dividend per ordinary share proposed/ declared for the period
(cents)		32,0	30,0	7	118,0
Taxation rate excluding amortisation and abnormal items (%)		33,0	33,8		32,2
EBITDA as a % of turnover		12,5	9,8		11,1
Note 1 Operating profit Operating profit is stated after charging:
- Cost of sales		2 172,2	1 795,6		3 639,7
- Other income		(20,1)	(16,4)		(21,8)
- Other expenses excluding depreciation and amortisation		507,5	447,3		88,.3
- Net losses on financial instruments (AC 133) 7.4
Note 2 Net interest and dividend income
Interest received		37,2	43,9		55,8
– from RC&C Finance Company		20,8	32,5		23,0
- External		16,4	11,4		32,8
Interest paid		(16,0)	(31,5)		(22,7)
Dividend income other than from associates		-	3,1		3,4
Total		21,2	15,5		36,5
Dividend income from associates included in share of associate companies profits		-	16,4		1078,4
Note 3
Abnormal item
The group's attributable share of the impairment of fixed assets		-
in an equity accounted associate		-	-		(18,7)
Taxation		-	-		-
Total		-	-		(18,7)
Note 4
BASIC EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE The earnings used to determine both basic earnings per share and diluted earnings per share being the earnings attributable to ordinary shareholders in Reunert (Rm)		192,0	175,2		370,6
The weighted average number of shares in issue used to determine basic earnings per share and headline earnings per share (millions of shares)		188,0	186,9		187,0
Adjusted by the dilutive effect of unexercised share options granted to certain group employees (millions of shares)		2,9	3,6		3,4
Weighted average number of shares used to determine diluted earnings per share and diluted headline earnings per share (note 5) (millions of shares)		190,9	190,5		190,4
Note 5 HEADLINE EARNINGS PER SHARE AND DILUTED  EADLINE EARNINGS PER SHARE Headline earnings per share and diluted headline earnings per share have been calculated using the weighted average number of shares in issue as detailed in note 4.Headline earnings are determined by eliminating the effect of capital items in attributable earnings as follows:
Earnings attributable to ordinary shareholders		192,0	175,2		370,6
Amortisation of goodwill		25,1	14,0		41,4
Attributable portion of impairment (note 3)		-	-		18,7
Other (net)		(0,2)	(0,1)		1,4
Headline earnings		216,9	189,1		429,3
Note 6 GOODWILL
Carrying value at the beginning of the period		360,0	10.9		10,9
Add: Acquisitions of businesses, associates and subsidiaries		3,5	389,1		390,5
Less: Adjustment to the purchase price of a business accuired in the prior year		(7,2)			(2,3)
Less: Amortisation for the period		(25,1)	(14,0)		(41,4)
Carrying value at the end of the period		331,2	386,0	360,0
Goodwill is written off over periods varying between one and ten years.
Note 7 INVESTMENTS
Cost plus equity accounted earnings excluding goodwill		80,2	237,9		151,6
At directors’ valuation		520,0	653,0		586,9
Note 8 FINANCE COMPANY ACCOUNTS RECEIVABLE
Collectable within one year		399,8	278,0		338,2
Collectable after one year		715,0	554,4		615,7
		1 114,8	832,9		953,9
Accounts receivable mainly consists of discounted deals that comprise the present value of discounted rental agreements which are repayable over varying periods up to a maximum of five years from the balance sheet date.
Note 9
Accounting policies Reunert has adopted the South African Statements of Generally Accepted Accounting Practice (SA GAAP) which became effective during the current financial year. This has resulted in changes to accounting policies. The main change involves the adoption of AC 133 on financial instruments. In terms of the transitional provisions of this statement the comparative figures do not need to be restated, however the statement does require the balances at the end of the previous financial year to be valued in terms of the statement. This has resulted in an increase in the group's accumulated profit of R6,7 million. (See statement of changes in equity.) The effect in the current year has been to reduce operating profit by R7,4 million, the tax charge by R2,7 million, earnings attributable to outside shareholders in subsidiaries by R1,4 million and earnings attributable to ordinary shareholders by R3,3 million. The group's accounting policies are in accordance with SA GAAP and, except for the above changes, are consistent with those of the prior period. The group's results have been prepared in accordance with SA GAAP applicable to interim financial reporting.
Note 10
Major acquisitions In December 2002 the group acquired Marconi Plc's 51% shareholding in ATC (Pty) Limited at a cost of R43,3 million, which represented a discount to net asset value of R11,0 million. This brought the group's total effective shareholding in ATC to 89,5%. Reunert has agreed to sell to Kgorong Investments Limited, a black-owned group, an effective 25,1% of ATC, once certain conditions have been met. This will reduce the Reunert group's holding in ATC to 64,4%.

		31 March 2003	31 March 2002	30 Sept 2002
	NOTES	R million (Unaudited)	R million (Unaudited)(8)	R million (Audited)(8)
NON-CURRENT ASSETS
Property, plant and equipment		223,3	152,2	157,1
Goodwill	6	331,2	386,0	360,0
Investments	7	80,2	237,9	151,6
RC&C Finance Company accounts receivable	8	1 114,8	832,9	953,9
Deferred taxation assets		25,9	41,3	25,9
		1 775,4	1 650,3	1 648,5
CURRENT ASSETS
Inventory and contracts in progress		640,2	509,6	659,8
Accounts receivable		832,1	673,2	712,9
Cash and cash equivalents (net)		338,7	197,5	280,7
		1 811,0	1 380,3	1 653,4
Total assets		3 586,4	3 030,6	3 301,9
SHAREHOLDERS’ FUNDS
Ordinary		1 345,1	1 162,4	1 305,0
Reunert Limited shares bought by a subsidiary		(234,6)	(234,6)	(234,6)
Preference		0,7	0,7	0,7
		1 111,2	928,5	1 071,1
Outside shareholders in subsidiaries		103,8	94,8	103,5
		1 215,0	1 023,3	1 174,6
NON-CURRENT LIABILITIES
Deferred taxation liabilities		46,3	49,0	45,9
Long-term borrowings		-	1,8	-
		46,3	50,8	45,9
CURRENT LIABILITIES
RC&C Finance Company short-term borrowings		1 014,6	734,6	838,0
Accounts payable, provisions and taxation		1 310,5	1 221,9	1 243,4
		2 325,1	1 956,5	2 081,4
Total equity and liabilities		3 586,4	3 030,6	3 301,9

	Six months ended 31 March					Year ended 30 Sept
	2003 R million (Unaudited)	%	2002 R million (Unaudited)	%	% change	2002 R million (Audited)	%
Revenue
Electronics
Office systems	445,3	12	419,8	12	6	876,6	12
Consumer products and services	1 572,4	41	1 386,7	41	13	2 782,1	39
Telecommunications	771,0	20	866,9	25	(11)	1 959,5	27
Reutech	362,4	9	186,4	5	94	375,3	5
Total electronics	3 151,1	82	2 859,8	83	10	5 993,5	83
Electrical engineering and cables
Low voltage electrical	328,3	9	268,9	8	22	555,2	8
Cables	364,3	9	295,6	9	23	629,9	9
Total electrical engineering and cables	692,6	18	564,5	17	23	1 185,1	17
Total operations	3 843,7	100	3 424,3	100	12	7 178,6	100
Less: Reunert's attributable portion of associate companies' revenue	(796,2)		(954,9)			(2 115,7)
Revenue as reported	3 047,5		2 469,4		23	5 062,9
Operating profit before goodwill amortisation Electronics
Office systems	76,7	22	70,9	23	8	147,2	21
Consumer products and services	115,8	33	78,4	25	48	175,2	25
Telecommunications	3,8	1	100,3	33	(96)	209,0	30
Reutech	66,0	18	12,0	4	450	38,5	6
Total electronics	262,3	74	261,6	85	-	569,9	82
Electrical engineering and cables
Low voltage electrical	64,7	18	41,9	13	54	94,8	14
Cables	28,2	8	6,0	2	370	27,6	4
Total electrical engineering and cables	92,9	26	47,9	15	94	122,4	18
Total operations	355,2	100	309,5	100	15	692,3	100
Reunert's attributable portion of associate companies' net operating loss/(profit)	3,2		(90,4)			(178,8)
Operating profit before amortisation of goodwill as reported	358,4		219,1		64	513,5

		31 March 2003 R million  (Unaudited)(8)	31 March 2002  R million  (Unaudited)(8)	30 Sept 2002 R million (Audited)(8)
EBITDA		380,5	242,9	559,7
(Increase)/reduction in net working capital		(123,0)	(2,7)	(366,0)
(Increase)/reduction in RC&C Finance Company accounts receivable		(160,9)	(87,8)	(208,8)
Other working capital changes (net)		37,9	85,1	(157,2)
Cash generated from operations		257,5	240,2	193,7
Net interest and dividends received (including associates)		21,2	31,9	144,9
Taxation paid		(121,5)	(165,4)	(209,0)
Dividends paid		(178,5)	(143,7)	(201,0)
Net cash (outflow)/inflow from operating activities		(21,3)	(37,0)	(71,4)
Net asset additions		(19,7)	(12,9)	(38,2)
Other (net)		2,6	3,9	29,5
Net cash (outflow)/inflow from operations		(38,4)	46,0	80,1
Other acquisitions		(80,2)	(456,8)	(442,9)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(118,6)	(502,8)	(523,0)
NET (BORROWINGS)/CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD		(557,3)	(34,3)	(34,3)
NET (BORROWINGS)/CASH AND CASH EQUIVALENTS AT END OF THE PERIOD		(675,9)	(537,1)	(557,3)
NET CASH RESOURCES OF THE GROUP EXCLUDING THE RC&C FINANCE COMPANY BORROWINGS
– Deposit on call with RC&C Finance Company		158,7	110,6	-
– Other cash reserves		180,0	86,9	280,7
		338,7	197,5	280,7
RC&C Finance Company borrowings		(1 014,6)	(734,6)	(838,0)
NET BORROWINGS AT END OF THE PERIOD		(675,9)	(537,1)	(557,3)
The deposits on call with the RC&C Finance Company are repayable on demand. RC&C Finance Company has long-term banking facilities which can be utilised to replace these funds.

		Six months ended 31 March		Year ended 30 Sept
		2003 R million    (Unaudited)	2002 R million    (Unaudited)	2002 R million (Audited)
Balance at beginning of period as previously reported		1 071,1	878,5	878,5
Adjustment to opening accumulated profit due to changes in accounting policies (note 9)			6,7	6,7
Net profit for the period		192,0	175,2	370,6
Dividends paid		(166,0)	(125,2)	(181,4)
Shares issued in terms of the Reunert Share Option Scheme		7,4	-	2,8
Translation reserve movement during the year		-	-	0,6
Balance at end of period		1 111,2	928,5	1 074,1

		Six months ended 31 March		Year ended 30 Sept
		2003 R million    (Unaudited)	2002 R million    (Unaudited)	2002 R million (Audited)
Net asset value per share (cents) including goodwill		589	497	572
Net asset value per share (cents) excluding goodwill		414	290	380
Current ratio including short-term portion of RC&C Finance Company accounts receivable (:1)		1,7	1,3	1,6
		188,6	186,9	187,3
Number of ordinary shares in issue (million)		205,8	204,1	204,5
Less: Held by subsidiary		(17,2)	(17,2)	(17,2)
Capital expenditure		20,0	13,2	42,0
expansion		12,8	9,0	26,1
replacement		7,2	4,2	15,9
Capital commitments		15,7	14,6	18,9
contracted		2,1	7,7	9,4
authorised not yet contracted		13,6	6,9	9,5
Commitments in respect of operating leases		80,2	53,7	65,2
Contingent liabilities		0,2	3,7	0,3

Reunert has produced strong results for the six months ended 31 March 2002 with headline earnings per share increasing by 30%. Turnover grew 17% while cost controls and improved efficiencies led to an increase in operating profit before depreciation and amortisation of 21%.

All the Group's operations, with the exception of ATC and Reutech, have achieved topline and operating profit growth. The acquisition in November 2001 of additional stakes in Sietel and Nashua Mobile together with last year's share buyback programme contributed to Reunert's growth in headline earnings per share.

Electronics
The Office Systems businesses were affected by the strengthening rand but were able to post higher turnover and profit. Both the Finance Company and Royce performed above expectation during the period under review.

Consumer Products and Services increased turnover and margins, mainly as a result of the growth achieved by Nashua Mobile without a commensurate increase in the cost base. The consumer market was difficult and the strength of the rand had a negative effect on margins.

The orders secured by Reutech during the previous financial year have resulted in higher turnover and a major profit improvement. Again, the strong rand is having a negative impact and it is unlikely that this performance will be matched in the second half.

The dollar denominated revenue stream of associate Siemens Telecommunications, where a large portion of costs were in rands, resulted in the business incurring significant losses. Most of these loss making contracts will be completed in the current financial year. Hedging mechanisms have been put in place to protect future revenue.

Electrical engineering and cables
The low voltage business performed strongly due to both turnover growth and operating improvements.

African Cables enjoyed buoyant demand for its products. This, together with improvements in efficiencies and sound control of overheads, resulted in a significant improvement in profits.

ATC's position has weakened in line with the continuing downturn in demand for telecommunication cables. The outlook for this business is uncertain and of concern. During the period, Reunert acquired Marconi's 51% share increasing its effective interest to 89,5%. As set out in Note 10, 25,1% of ATC has been sold to Kgorong.

The operations managed directly by Reunert performed particularly well in the first six months. Should the rand stay at current levels, the rate of growth in profits in the second half of the year for these businesses will be substantially lower than that achieved in the first half.

Associate company, Siemens Telecommunications, should perform better in the second half. Nevertheless, profits will be significantly lower than those achieved last year.

Assuming some weakening of the rand, growth in headline earnings per share for the year is expected to be modest.

Notice is hereby given that an interim dividend No. 154 of 32 cents per share (2002: 30 cents per share) has been declared by the directors for the half year ended 31 March 2003. In compliance with the requirements of Strate, the following dates are applicable:
Last date to trade (cum dividend) Friday, 20 June 2003
First date of trading (ex dividend) Monday, 23 June 2003
Record date Friday, 27 June 2003
Payment date Monday, 30 June 2003

Share certificates may not be dematerialised or rematerialised between Monday, 23 June 2003 and Friday, 27 June 2003, both dates inclusive.

Derek Cooper, Chairman Gerrit Pretorius, Chief Executive

Sandton, 7 May 2003
SECRETARIES' CERTIFICATION
For the six months ended 31 March 2003
The company has lodged with the Registrar all such returns as are required by a public company in terms of the Companies Act.

R G Drakes
For Reunert Management Services Limited
Company Secretaries

Incorporated in the Republic of South Africa
Registration number 1913/004355/06
Share code: RLO
ISIN code: ZAE000005914

Registered office
Lincoln Wood Office Park
6 - 10 Woodlands Drive, Woodmead, Sandton
PO Box 784391, Sandton, 2146
Telephone (011) 517-9000

Sponsor
Rand Merchant Bank, Corporate Finance

Share Transfer secrataries  
Investor Services Ltd  
11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
visit our website at
www.reunert.com