{"id":58053,"date":"2014-05-20T09:33:53","date_gmt":"2014-05-20T07:33:53","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=58053"},"modified":"2014-05-20T09:33:53","modified_gmt":"2014-05-20T07:33:53","slug":"nashua-mobile-drags-on-reunert","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/58053\/nashua-mobile-drags-on-reunert\/","title":{"rendered":"Nashua Mobile drags on Reunert"},"content":{"rendered":"

Listed ICT group, Reunert, has reported an 8% decline in n<\/span>ormalised headline earnings per share for the six months ended March 2014, to 237.2 cents, curbed by its Nashua Mobile business.<\/p>\n

On 14 April 2014 Reunert announced that its subsidiary, Nashua Mobile, had entered into separate and distinct agreements with MTN and Vodacom to dispose of its subscriber bases.<\/p>\n

Reunert therefore presented Nashua Mobile as a discontinuing operation in its results.<\/p>\n

Nashua Mobile reported a 41% decline in profit for the period to R60.4 million.<\/p>\n

Normalised headline earnings per share from continuing operations increased by 3% from 194 cents to 200 cents.<\/p>\n

Group revenue from continuing operations increased by 14% to R3.7 billion, whilst operating profit increased from R449.2 million to R477.2 million.<\/p>\n

Reunert declared a gross interim cash dividend of 95 cents per ordinary share (2013: 95 cents).<\/p>\n

Nashua<\/strong><\/p>\n

Revenue increased by 3% to R3.4 billion for the Nashua segment as a whole. However, excluding Nashua Mobile, revenue increased by 10% to R1.6 billion.<\/p>\n

Operating profit from continuing operations increased by 11% to R204.4 million, whilst operating profit, including Nashua Mobile, decreased by 8% to R290 million.<\/p>\n

Nashua Office Automation reported an increase of 19% in revenue, which was principally due to the acquisition of Nashua North and ProdocSvenska AB, in Sweden.<\/p>\n

Nashua Office Automation managed to limit the impact of the weakening Rand on its margins, Reunert said.<\/p>\n

Revenue for Nashua Mobile decreased by 5%, as a result of continued price deflation in the mobile industry, as well as the impact of the reduced incentives received from the service providers.<\/p>\n

“Nashua Communications reported a marginal decrease in revenue. The sales and installations of our VoIP solution continue to strengthen, while the Siemens\/Unify business remains subdued,” Reunert said.<\/p>\n

It said that the business of Nashua Communications was right-sized in October 2013, which resulted in once-off restructuring costs being incurred. As a consequence of these costs, operating profits were slightly down on the prior year.<\/p>\n

Looking ahead, Reunert said it will continue to pursue earnings growth, both organically and through synergistic acquisitions.<\/p>\n

“However, given the sluggish economy, organic growth is expected to remain challenging.”<\/p>\n

“Consequently, the group will also retain its focus on rigorous cost control, effective cash management and the extraction of efficiencies from its businesses,” Reunert said.<\/p>\n

More on Reunert and Nashua<\/h3>\n

Nashua revenue decline hits Reunert<\/strong><\/a><\/p>\n

\u00a0Nashua Mobile to close in 6 months<\/strong><\/a><\/p>\n

Nashua Mobile to sell off MTN and Vodacom subscribers<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Reunert reported an 8% decline in normalised headline earnings per share for the six months ended March 2014, to 237.2 cents.<\/p>\n","protected":false},"author":10,"featured_media":55764,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[26,28,2618,555,27],"class_list":["post-58053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-headline","tag-mtn","tag-nashua","tag-reunert","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/58053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=58053"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/58053\/revisions"}],"predecessor-version":[{"id":58067,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/58053\/revisions\/58067"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/55764"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=58053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=58053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=58053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}