Reunert delivers double-digit growth for FY17

21st November 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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A strong second half of the year pushed JSE-listed Reunert onto a double-digit growth trajectory for the full financial year ended September 30.

The group on Tuesday posted a 14% rise in operating profit to R1.5-billion and a 19% surge in profit to R1.1-billion for the year under review.

Headline earnings a share for the period improved by 19% to 679c.

This followed a strong second-half performance across all segments, including the export businesses, during the year, Reunert said in an update to shareholders.

The electrical engineering segment achieved operating profit growth of 14% to R696-million for the 12 months to September 30, driven by the acquisition of Zamefa and the strong performance of the power and telecommunications cable business units.

The information and communications technology (ICT) segment increased its operating profit by 16% to R635-million, delivering a strong performance for the period, underpinned by positive margin movement in both the office automation and voice business portfolios.

However, the applied electronics division reported a 10% decline in operating profit to R276-million owing to lower export orders in the first six months of the financial year.

Reunert’s group revenue increased by 15% to R9.8-billion, mostly on the back of growth in the electrical engineering segment, which achieved 28% revenue growth to R5.2-billion.

Revenue in the applied electronics segment expanded by 14% to R1.7-billion, while revenue in the ICT segment was flat at R3.3-billion.

Reunert declared a total year-end dividend of 474c.

Edited by Creamer Media Reporter

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