Reunert revenue up 14 per cent - CNBC Africa

Reunert revenue up 14 per cent

Earnings

by Trust Matsilele 0

Reunert's electrical operations increased 12 per cent to 1.8 billion rand. PHOTO: Getty Images

The company’s operating profit increased from 449 million rand in 2013 to 477 million rand in 2014.  

[DATA RLO:Reunert Limited] also reported a three per cent increment in its basic earnings per share rising to 200 cents in 2014 from 195 cents in 2013 and headline earnings per share from continuing operations of 201 cents in 2014 up from 195 cents in 2013.

Operating profit went up by 58 per cent to 77 million rand, this was attributed to the higher revenues as well as the once-off integration costs associated with the SAAB Grintek acquisition in 2013 not being repeated.

Reunert Limited focuses on electrical engineering, information and communication technologies, defence and allied technologies.

Operations from electrical businesses were up by 12 per cent to 1.8 billion rand as a result of increased sales by the energy cables business.

Revenue increased by three per cent to 3.4 billion rand for the Nashua segment as a whole. However, excluding Nashua Mobile, revenue increased by 10 per cent to 1.6 billion rand.

Nashua Mobile entered into separate and distinct agreements with MTN and Vodacom to dispose of its subscriber bases this April meaning its operations will not appear in the company’s future results.

(READ MORE: Vodacom and MTN buy out Nashua Mobile subscribers)

The company noted that it is positive about its growth prospects and says it will consider synergies but added that the current economic challenges would slow organic growth.

“Reunert will continue to pursue earnings growth, both organically and through synergistic acquisitions.”

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“However, given the sluggish economy, organic growth is expected to remain challenging. Consequently, the group will also retain its focus on rigorous cost control, effective cash management and the extraction of efficiencies from its businesses.” 

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