During the year Reutech Solutions successfully renewed its static telecoms infrastructure support contract with the SANDF for a further five years. This cements a 30-year relationship with the SANDF and underscores Reutech Solutions’ unrivalled capability in the domestic market.
Results were negatively impacted by the unexpected cancellation of a major order for defensive gun systems. This was partially offset by an order received for a similar system for the export market. Ideally suited for anti-piracy operations and close-quarters self-defence, prospects for this segment of Reutech Solutions’ business remain positive.
Sales of Reutech’s patented remote-controlled scraper winch performed well during the year, with the first controller deployed at Anglo Platinum mines. These controllers dramatically improve safety, extend machine and motor life and reduce energy consumption. The equipment can easily be operated by women and has been well received in the market. Reutech Solutions is initially focusing on distributing these systems in South Africa, and will look to roll out the systems internationally in the medium term.
A significant proportion of Reutech Solutions’ capacity in the year was devoted to contracts for the erection and equipping of base stations for Cell C and Telkom. Regrettably, contractual ambiguities with the prime contractors that could not be resolved on a timely basis resulted in substantial losses being incurred on these contracts.
As a result, Reutech has decided to limit its relationships with the two suppliers involved to executable contracts.
Solution’s contract with Nokia to service handsets, with more than 8 000 handsets serviced per month, helps to utilise the available logistics capacity. |
