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Reunert reports improved revenue

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 19 May 2015
Reunert's results were buoyed by the disposal of Nashua Mobile and the sale of its subscriber base.
Reunert's results were buoyed by the disposal of Nashua Mobile and the sale of its subscriber base.

Technology group Reunert has reported a 7% increase in revenue from continuing operations, to R3.9 billion, while operating profit increased by 5%, to R502.8million, for the six months ended 31 March 2015.

Normalised headline earnings per share for the group, from all operations, increased by 10%, to 261.4c, compared to the prior period.

Basic earnings per share for the group, on the same basis, increased by 20% to 286.5c, while headline earnings per share for the group increased by 11%, to 264.8c.

"Notwithstanding a sluggish domestic economy, the adverse impact of load-shedding and delays in the commencement of various national infrastructure projects, trading results for the past six months reflect a pleasing improvement over the prior year," says Reunert in a statement released on SENS.

"This improvement is due to moderate, real growth in operating profit from continuing operations, additional proceeds on the sale of the Nashua Mobile subscriber bases and interest earned on the Nashua Mobile disposal proceeds."

Nashua Mobile's last month of trading was November 2014, following which the division's subscriber bases were successfully transferred to mobile operators.

According to Reunert, segmental revenue from continuing operations (excluding Nashua Mobile) increased by 8%, to R1.7 billion. Operating profit increased by 19%, to R243.7 million, driven by increased volumes in ECN, a larger rental asset book in Quince and the return to profit of Nashua Communications and Prodoc.

"The voice component of Nashua's business has delivered very pleasing results. Nashua Communications, which offers unified communication solutions, has been successful in acquiring and executing several large corporate contracts," says the group.

"ECN, our VOIP business, has had another successful period and has grown its customer base and minutes routed over their network. Eskom's load-shedding has had an impact on sales volumes, but the improved volumes and margin led to a significantly improved trading performance."

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