R/€ = 14.30
R/$ = 10.68
Au 1293.98 $/oz
Pt 1477.50 $/oz
Nov 25, 2005
Fruits of the bloomBack
Construction|Defence|Industrial|Nashua Mobile|RC&C Holdings|Reunert|Siemens Tele|Vodacom|Allowed Electronics|Electricity-distribution Infrastructure|Electricity-distributionnInfrastructure|Electronics|Telecommunications Interests|Infrastructure|Cables
© Reuse this THE recent consumer boom, fuelled by low interest rates and tamed inflation levels, has allowed electronics company Reunert to ramp its revenue by 13%, from R6, 2-billion to R7-billion, for the financial year ended September. Reunert CE Gerritt Pretorius notes that strong performance in the group’s operations contributed 34% to earnings performance.
The company owns a stable of electronics and electronic engineer- ing companies, which include Nas-hua, Nashua Mobile and RC&C Holdings.
Pretorius says that the low interest rates and lower inflation contributed to a consumer boom, which was especially favourable to the group’s consumer businesses, Nashua Mobile and RC&C Holdings.
Meanwhile, in its electrical engin-eering interests, African Cables and CBI, a strong performance during the financial year was attributed to growth in residential and industrial construction which, in turn, fuelled a demand for electricity-distribution infrastructure. Turnover in the electrical engineer- ing operations increased by 36%, from R1,4-billion in the 2004 financial year to R2-billion for the 2005 fin-ancial year.
Referring to its telecommunications interests, the company states that Nashua Mobile will continue to operate as an independent service provider servicing all three networks.
In October, however, Nashua Mobile signed a deal with Vodacom to ensure that the company will be a preferred independent service provider to the Vodacom network for the next five years, with an option to extend the agreement for a further five years.
Although its telecommunications interests recorded a 7% increase in revenue over the previous financial year, Reunert predicts that growth in the cellular-phone market will inevitably begin to dip. Apart from its ownership of Nas-hua Mobile, the company also en- joys a 40% stake in Siemens Tele-communications. One of the areas in which the JSE-listed group experienced poor performance, however, was in its defence business, Reutech, which experienced a bleed in revenue, from R443-million in 2004 to R298-million for the last financial year – a change of 33%.
The defence company’s operating profit also slumped to R1,7-million for the 2005 financial year, from R48,5-million the previous year.
“Defence, however, is a small part of the refocused Reunert and today represents less than 4% of the group,” says Pretorius.
Edited by: peter cromberge© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...