Reunert stays above water but warns of tough times ahead
The group reported a 16% decline in profit after tax to R377m and a R44m loss from the disposal of its controlling stake in Swedish unit Profoc Svenska
Electronics group Reunert has warned investors that it is unlikely to match the performance of the second half of its previous financial year following a decline in earnings in the six months to March. The group reported a 16% decline in profit after tax to R377m because of a R42m tax provision and a R44m loss from the disposal of its controlling stake in Swedish unit Profoc Svenska. Reunert said the rationale for this disposal was “the consistent low earnings from this business and the weakened strategic alignment of the business with the broader ICT segment strategy”. Reunert’s headline earnings per share were down 7% to 253c. Group revenue grew 9% to R5.2bn and operating profit increased 8% to R615m . The company said it faced challenges including continued subdued demand specifically in its electrical engineering unit, which manufactures electrical and telecommunications cables. The unit increased revenue by 14% to R2.7bn, with operating income improving by 3% to R225...
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