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With the sale of Nashua Mobile's subscriber base now concluded and the unit subsequently closed, parent company Reunert planned to use the cash flows earned from the deal to “explore growth opportunities through investment”.
The R1.4-billion profit from the split sale of Nashua Mobile’s subscriber complement to mobile operators introduced “significant liquidity” into Reunert’s balance sheet.
“This provides the group with the means to seek meaningful future inorganic growth,” the group said as it presented its financial results for the year ended September 30.
Reunert reported late on Tuesday that, excluding Nashua Mobile, revenue from subsidiary Nashua increased by 13% to R3.4-billion in the year to September. Including the now shut unit, the segment’s revenue ticked up marginally to R6.8-billion.
Operating profit from continuing operations increased 4% to R453.8-million, while operating profit, including Nashua Mobile, which was classified as a discontinued operation, decreased 2% to R637.5-million.
Revenue from the group’s continuing operations increased 7% to R7.8-billion in the 2014 financial year.
During the 12 months to September, Reunert recorded an 8% drop in operating profit to R1-billion.
Overall, the group’s normalised headline earnings per share (HEPS) from all operations in the year under review fell 3% from 569.1c last year to 553.3c in the year ended September 30.
Reunert posted a 104% rise in basic earnings a share to 1 201.6c, while HEPS plunged 13% to 505.6c in the period under review.
The company maintained its final year-end dividend of 275c a share.