Reunert on Tuesday (20 November) reported positive growth for the 2018 financial year ended September, with revenue up by 7% to R10.49 billion.<\/p>\n
It noted that in a volatile rand environment, operating profit grew by 3% from R1.54 billion. This, it said, was achieved despite a sharp decline in electrical engineering’s profitability, driven by improved earnings in both the ICT and applied electronics segments, it said.<\/p>\n
The ICT and applied electronics segments, which includes Nashua, performed well, particularly in the second half of the year, Reunert said. The ICT segment improved sales in high category multi-functional printers and had good growth in new total workspace solution sets.<\/p>\n
Applied electronics growth was driven by record export sales, the benefit of a weakening rand in the second half and the rapid expansion of the renewable energy business.<\/p>\n
Reunert said that this improvement in profitability, combined with the reduction in the number of shares in issue resulted in headline earnings per share growing by 4% to 703 cents per share. Normalised headline earnings per share cents was up 1% to 697 cents per share.<\/p>\n
A dividend has been declared from retained earnings, Reunert said, bringing the total dividends declared out of 2018 profit for the year to 493 cents per share.<\/p>\n
ICT<\/strong><\/p>\n “The ICT segment had another pleasing year as it continues to implement its strategy, Reunert said. Revenue increased by 4% to R3.4 billion and operating profit increased by 25% to R792 million, including a fair value gain of R77 million as a result of the remeasurement of the SkyWire contingent purchase consideration.<\/p>\n Excluding the fair value remeasurement, the operating profit increased by 13% to R715 million.<\/p>\n The office automation cluster continued to produce strong product sales, Reunert said. Revenue from products and services grew by 7% and generated 13% of total revenue.<\/p>\n “The franchise channel performed strongly and the adoption rate of the new total workspace products and services continues to increase.”<\/p>\n Looking ahead, Reunert said that recent government commitments to increase infrastructure investment bode well for a recovery in the electrical engineering segment although uncertainty as to the timing and extent prevails.<\/p>\n “The ICT segment is anticipated to continue to deliver a good performance as its strategy execution continues and the SkyWire acquisition bolsters the growth of the segment,” it said.<\/p>\n
\n