Listed electronics company Reunert will exercise its option to sell its 40% stake in Nokia Siemens Networks (NSN).
The company will sell the stake at year-end and receive a minimum amount of R793.5 million, which will bolster cash flow in the new financial year. Nokia Siemens holds the majority stake in the company.
Reunert's minority stake in NSN meant it was a passive shareholder and had no control over the business. The listed company has historically held a 40% stake in Siemens Telecoms, which later became a 40% stake in NSN after Nokia and Siemens merged the business in 2007.
Speaking at his first results presentation since taking over as CEO a few months ago, Nick Wentzel explained the company will focus on its three core business units going forward. Reunert's three divisions are Nashua, CBI-electric and Reutech.
Reunert reported revenue up 4%, to R10.7 billion, for the year to September. Operating profit improved 7%, to R1.2 billion, and normalised headline earnings per share, stripping out abnormal items, grew 3% to 515.7c.
A final dividend of 220c was declared, 17% up on last year's 188c per share. This brings the total dividend to 287c per share for the year, compared with 253c last year.
Wentzel says the company benefited from margin improvements after restructuring the business last year. CBI-electric reported operating profit up 24% to R521 million, while Nashua bolstered its operating profit 19% to R615 million.
However, Reutech did not repeat its strong 2009 performance, and reported operating profit down 73%. Reutech houses the company's defence operations and its set-top box unit.
Reunert, which has R1.8 billion in the bank, is considering acquisitions to grow the business. Wentzel says the company will identify more Nashua Office Automation franchises to buy out and is looking at expanding the business on the continent.
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