| |
Report to shareholders |
| Reunert is pleased to announce headline earnings per
share growth of 31% for the six months to March 2005. |
| |
| Turnover increased by 9% and operating profit by 28%
as a result of sound performances from all operations except
the Group’s defence businesses. Associate company,
Siemens Telecommunications, performed well but profitability
was marginally below the previous year. Minority share
of profits decreased as a result of the acquisition of
Pirelli’s 50% share of African Cables. The Group posted
a 19% increase at the headline earnings level. The reduced
number of ordinary shares in issue following the share
buyback completed in 2004 contributed a further 12% to
the growth in headline earnings per share. |
| |
| Positive cash flow increased the Group’s cash resources
to R319 million in spite of higher tax and dividend payments
made during the period under review. |
| |
Review of operations |
ELECTRICAL ENGINEERING |
| The electrical engineering market continued to expand
which enabled the division to increase turnover by 31%.
Expense levels were well controlled resulting in a 49%
increase in operating profit. |
| |
| African Cables, which has entered into an empowerment
deal with Powerhouse Utilities, maintained its growth in
earnings as the market for power cable remained firm. Municipalities
have continued upgrading and expanding their electrical
infrastructures. |
| |
| Circuit Breaker Industries performed well. The buoyant
residential market and the acquisition of Heinemann Electric
in Australia contributed to earnings and profit growth.
Demand from the mining sector has not grown as the strength
of the rand continues to affect this industry. |
| |
| Although the market for telecommunication cables remained
subdued, ATC traded profitably for the six months under
review. |
| |
ELECTRONICS |
| This division grew turnover by 2% and operating profit
by 2%. |
| |
| Nashua and Nashua Mobile contributed positively to group
profits. Demand for consumer & commercial products
remained strong in a highly competitive marketplace. Unit
sales have increased substantially and, despite a reduction
in selling price, rand turnover growth has been achieved. |
| |
| Associate company Siemens Telecommunications’ profits
were down slightly reflecting the effect of the strong
rand. Order intake remains firm. |
| |
| Reutech continues to suffer from a low order intake and
reported a small loss. However, with continued effort from
management, profitability should be restored. |
| |
PROSPECTS |
| With the exception of Reutech, the Group’s operations
are expected to enjoy buoyant market conditions. Reunert
should continue to deliver real headline earnings growth. |
| |
DIVIDEND |
| Notice is hereby given that interim ordinary share
dividend No. 158 of 52 cents per share (2004: 40 cents
per share) has been declared by the directors for the
half year ended 31 March 2005. In compliance with the
requirements of STRATE, the following dates are applicable: |
| Last date to trade (cum dividend) |
Friday, 17 June 2005 |
| First date of trading (ex dividend) |
Monday, 20 June 2005 |
| Record date |
Friday, 24 June 2005 |
| Payment date |
Monday, 27 June 2005 |
|
| |
| Shareholders may not dematerialise or rematerialise their
share certificates between Monday, 20 June 2005 and Friday,
24 June 2005, both days inclusive. |
| |
ON BEHALF OF THE BOARD |
| Derek Cooper |
Gerrit Pretorius |
| Chairman |
Chief Executive |
| Sandton, 9 May 2005 |
|
| |
|
REUNERT LIMITED |
|
|
| Incorporated in the Republic of South Africa (Reg No
1913/004355/06) |
| Share code: RLO ISIN code: ZAE000057428 |
| |
DIRECTORS: |
| DE Cooper (Chairman)*, G Pretorius (Chief Executive),
BP Connellan*, BP Gallagher, SD Jagoe*, KJ Makwetla*, GJ
Oosthuizen, KC Radebe*, DJ Rawlinson, MJ Shaw*, Dr JC van
der Horst* |
| *Non-executive |
| |
REGISTERED OFFICE: |
| Lincoln Wood Office Park, 6 – 10 Woodlands Drive,
Woodmead, Sandton PO Box 784391, Sandton, 2146 Telephone
011 517 9000 TRANSFER SECRETARIES: Computershare Investor
Services 2004 (Pty) Limited, 70 Marshall Street, Johannesburg,
2001 PO Box 61051, Marshalltown, 2107 |
| |
SPONSOR: |
| RAND MERCHANT BANK (A division of FirstRand Bank Limited) |
| CORPORATE FINANCE |
| |
SECRETARIES’ CERTIFICATION: |
| For the half year ended 31 March 2005 |
| The company has lodged with the Registrar all such returns
as are required by a public company in terms of the Companies
Act (Act 61 of 1973) as amended (“the Act”). |
| |
| John Simmonds |
| For Reunert Management Services Limited |
| Company secretaries |
| |
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
Die verslag is ook
in Afrikaans beskikbaar.
|
