Improved ICT segment boosts Reunert in full-year results
Bouyed by its ICT division, JSE-listed industrial group Reunert recorded an improved financial performance for the full-year ended September.
Reunert says the group’s companies managed the market environment well to deliver good operating performances − specifically in the ICT and electrical engineering segments.
It has three operating segments that comprise of electrical engineering, ICT and applied electronics.
According to Reunert, in the period, the electrical engineering segment saw a strong recovery, while the applied electronics segment had a challenging year.
Reunert says the ICT segment improved on the results of the past year, with its subsidiary Nashua significantly recovering its traditional print business and continuing its strong growth in new complementary products and services.
The business communications cluster, which comprises Skywire and ECN, also continued to grow strongly, as broadband connectivity growth accelerated and the general economic activity improved.
The company says all its ICT businesses performed in line with expectations and resulted in revenue remaining nominally flat at R2.49 billion (2020: R2.2 billion). Segment operating profit increased slightly to R608 million (2020: R604 million).
Reunert Group CEO Alan Dickson comments: “We are pleased with the group’s performance in a year where several macro-economic challenges needed to be addressed. The recovery in the group’s performance reflects the resilience and responsiveness of our businesses.
“The performance of the companies on our key growth markets of renewable energy, exports and ICT continue to accelerate and underpin our expectation of future improvement in financial performance in the year ahead.”
In the year, Reunert’s financial highlights included group revenue rising by 19% to R9.5 billion (2020: R8 billion), while operating profit also went up by 405% to R1 billion (2020: R208 million).
Headline earnings per share surged by 316% to 478c (2020: 115c) and earnings per share increased by 1 566% to 483c (2020: 29c).
Based on this performance, the dividends also increased by 8% to 277c per share (2020: 257c per share).
“We showed adaptability at Reunert as we recovered after the extremely difficult 2020 and delivered a strong performance. This has created a solid base for further growth going forward,” says group CFO Nick Thomson.
“We are dealing with the reality of the post-COVID-19 world and have proved that our quality products and excellent services remain sought-after throughout our markets.”