Buyout helps Reunert to lift profit
Reunert posted 14% growth in operating profit and 19% growth in profit for the year ended-September, helped by the buyout of wire and cable manufacturer Metal Fabricators of Zambia (Zamefa).
Group revenue jumped 15% to R9.8bn with headline earnings per share leaping 19%, but 5% on a normalised basis. The information and communications technology (ICT) and electrical engineering divisions drove growth, Mish-al Emeran of Electus Fund Managers said.
“Overall, I think it is a good result, given the competitive landscape and state of the economy,” he said. In the ICT division, Emeran said that office solutions provider Nashua and voice and data services business ECN reported flat revenues. But margin gains from cost efficiency and the stronger rand supported hardware margins in Nashua.
Emeran said Reunert’s electrical engineering division had benefited from organic growth, especially in the Telecom Cables unit, which reported strong production volume growth from the roll-out of fibre optics.
More significantly, the Zamefa acquisition had improved the numbers, he said.
Operating profit in the Reutech defence business in the applied electronics division fell 10% on lower export orders in the first half of the year.