Reunert buoyed by Nashua mobile sale

·19 May 2015

JSE-listed Reunert has reported a 7% rise in revenue to R3.9 billion for the six months ended March 2015, along with an operating profit of R502 million, up 5%.

Normalised headline earnings per share for the group, from all operations, increased by 10% to 261.4 cents.

Basic earnings per share for the group increased by 20% to 286.5 cents, whilst headline earnings per share increased by 11% to 264.8 cents.

Reunert said that its improved results was as a result of moderate, real growth in
operating profit from continuing operations, additional proceeds on the sale of the Nashua Mobile subscriber bases and interest earned on the Nashua Mobile disposal proceeds.

The group sold off its Nashua Mobile subscriber bases to SA operators MTN and Vodacom, and offloaded its Cell C subscribers to Altech Autopage in November last year.

Reunert said that the profit recognised in respect of the sale of subsidiary, Nashua Mobile, amounted to R1.4 billion.

Nashua’s interim revenue from continuing operations (excluding Nashua Mobile) increased by 8% to R1.7 billion.

Operating profit for Nashua increased by 19% to R243.7 million driven by increased volumes in ECN, its next generation network, a larger rental asset book in Quince and the return to profit of Nashua Communications and Prodoc, the Swedish office automation company.

The voice component of Nashua’s business delivered very ‘pleasing results’, Reunert said.

Nashua Communications successfully acquired and executed several large corporate contracts. ECN, meanwhile, grew its customer base and minutes routed over its network.

Reunert said that Eskom’s load shedding has had an impact on sales volumes but the improved volumes and margin led to a significantly improved trading performance.

The group declared an interim cash dividend of 105 cents per ordinary share, up from 95 cents per share in 2014.