JSE-listed Reunert on Tuesday posted an increase in normalised earnings for its continuing operations for the year ended September 30, as the group makes good progress on its strategy.

The company reported normalised headline earnings per share (HEPS) of 662c for the year under review, a 14% year-on-year increase in all operations and 17% for continuing operations after removing merger and acquisition and empowerment International Financial Reporting Standards 2 share-based payment transaction costs.

Reunert maintained basic earnings per share (EPS) for continuing operations of 577c, with HEPS coming in at 570c.

Overall, profit for the year under review contracted 4% to R963-million.

Operating profit from continuing operations for the year to September increased 13% to R1.3-billion, while group revenue increased 2.5% to R8.5-billion, mostly owing to a 39.2% growth spurt in the applied electronics segment.

The electrical engineering segment remained static at R4.1-billion, while revenue in the information and communication technology segment was down 2.9%.

Reunert attributed this to weaker unit sales, offset by an increase in average selling prices, in part owing to a weaker rand and a strategy of moving the sales mix towards more expensive units.

“We have made good progress on the execution of the group strategy, underpinned by our ongoing programme of strategic acquisitions, positioning the group positively for growth.

“In the short term, although diminished, our concentration in South Africa will continue to expose the group to the local macroeconomic drivers resulting from the country's current and emerging economic and political environment,” the company said in an update to shareholders.

It is expected that growth in the second half of 2017 is likely to be stronger than in the first half, as the group’s export businesses return to full capacity on the back of expected new orders.

Reunert declared a dividend of 326c a share for the year under review.