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Unaudited condensed
consolidated interim
financial statements1
REUNERT LIMITED
Incorporated in the Republic of South Africa
Registration number 1913/004355/06
Ordinary share code: RLO
ISIN code: ZAE000057428
(“Reunert”, “the Group” or “the Company”) and cash dividend declaration for the six months ended 31 March 2023
The contents of this short-form announcement are the responsibility of the board of directors of the Company (the Board). Shareholders are advised that this short-form announcement does
not contain full or complete details and represents a summary of the information contained in the full announcement, which is accessible via the JSE link at
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/RLO/Interim_23.pdf and on Reunert’s website (https://reunert.co.za/downloads/results/2023/Reunert_Interim_Results_2023.pdf) from
24 May 2023. Shareholders and investors are advised to review the full announcement in making any investment decisions.
The full announcement is also available for inspection at no charge at the registered offices of the Company and its sponsor during normal business hours.
SALIENT FEATURES
21% 33% 30%
R6 203 2022 R620 2022 R412 2022
R5 114 R465 R316
GROUP
REVENUE OPERATING ATTRIBUTABLE
(RM) PROFIT (RM) PROFIT (RM)
37% 11% 32%
267 2022 83 2022 259 2022
195 75 196
HEADLINE INTERIM EARNINGS
EARNINGS DIVIDEND PER SHARE
PER SHARE (CENTS) PER SHARE (CENTS) (CENTS)
Overview authorities. IQbusiness has revenues in excess of R1 billion and has key competencies in
the financial services, retail and telecommunications industries. The acquisition of
Reunert is pleased to present its results for the six-month period ended 31 March 2023
(H1 FY: 2023), which reflect continued growth in the Group’s financial performance IQbusiness, when concluded, will create an expanded service offering and improved
compared to the prior comparative period. This growth resulted from the Electrical technical capabilities for the ICT Segment in the Solutions and Systems Integration cluster.
Engineering and Applied Electronics Segments delivering excellent operational Applied Electronics
performances on the back of improved demand for their products and services. The Applied Electronics Segment had a strong financial performance in H1 FY: 2023 resulting
Group results in segment revenue increasing by 49% to R1,6 billion (H1 FY: 2022: R1,1 billion) and segment
The Group’s revenue increased by 21% to R6,2 billion from R5,1 billion achieved in the operating profit increasing by 196% to R163 million (H1 FY: 2022: R55 million).
six-month period ended 31 March 2022 (H1 FY: 2022), primarily due to improved cable
volumes in the Electrical Engineering Segment, and the growth in sales in the Applied
Prospects
Reunert is well positioned to deliver an improved full year financial performance for 2023. The
Electronics Segment as demand for renewable energy products continued to increase financial performance for H2 FY: 2023 is, however, not expected to replicate the rate of growth
and the delivery of the defence export order book accelerated. experienced in H1 FY: 2023 due to the strong financial performance delivered in H2 FY: 2022.
The Group generated positive operating leverage from the improved throughput and The full year prospect is supported by the level of orders received in both the Electrical
operational efficiencies in the Applied Electronics and Electrical Engineering Segments. Engineering Segment, specifically the Power Cable businesses, and in the Applied Electronics
The ICT Segment delivered results in line with expectations and the guidance provided in Segment. These order books support the revenue and margin expectations and position the
the 2022 year end results. The Group’s operating profit includes the benefit of a R44 two segments to continue to perform strongly in H2 FY: 2023.
million preliminary insurance pay-out for the business interruption caused by the COVID-19
The ICT Segment is expected to deliver an improved year-on-year performance on the back
pandemic. Accordingly, the Group’s operating profit increased by 33% to R620 million (H1
of the accelerated growth of +OneX and stable growth from the Total Workspace Provider and
FY: 2022: R465 million).The Group’s profit for the period increased by 32% to R422 million
Business Communications cluster.
(H1 FY: 2022: R319 million) with earnings per share and headline earnings per share
increasing by 32% and 37% respectively. The Group’s cash flow remains a key focus area and is expected to support the execution of
both the Group’s operational and strategic initiatives and enable an increased return to
At 31 March 2023, all segments continued to have healthy order books and, while both
shareholders.
international and local macro-economic conditions pose increased risk, the Group remains
well positioned for the 2023 financial year. Cash dividend
Cash resources and liquidity Despite the Group’s increased investment into working capital in H1 FY: 2023 and the
Higher sales in the last quarter of H1 FY: 2023 resulted in higher trade receivable balances. economic uncertainty, the Group’s free cash flow generating capacity remains intact. Notice
This, together with further investment into inventory as the Group prepares for the execution is hereby given that a gross interim cash dividend No. 194 of 83,0 cents per ordinary share
of the large export and other orders that will be delivered from the second half of the 2023 (March 2022: 75,0 cents per ordinary share) has been declared by the Board for the six months
financial year (H2 FY: 2023) and into the 2024 financial year, led to the Group increasing its ended 31 March 2023.
investment in working capital by a further R324 million (H1 FY: 2022: R312 million). The dividend has been declared from retained earnings.
The ongoing cash generation capability of the Group, together with the headroom in its A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt
bank funding capacity, provides the financial resources for the Group’s operational and from, or who do not qualify for, a reduced rate of withholding tax.
strategic initiatives and dividend payments. Accordingly, for those shareholders subject to withholding tax, the net dividend amounts
to 66,4 cents per ordinary share (March 2022: 60,0 cents per ordinary share).
Segment review The issued share capital at the declaration date is 184 969 196 ordinary shares.
Electrical Engineering
The Electrical Engineering Segment continued its recent growth trajectory with a strong The income tax reference number is 9100/101/71/7P.
performance in H1 FY: 2023 as segment revenue increased by 11% to R3,2 billion In compliance with the requirements of Strate Proprietary Limited and the Listings
(H1 FY: 2022: R2,9 billion), while segment operating profit increased by 44% to R218 million Requirements of the JSE Limited, the following dates are applicable:
(H1 FY: 2022: R151 million). Last date to trade (cum dividend) Tuesday, 20 June 2023
ICT First date of trading (ex dividend) Wednesday, 21 June 2023
The ICT Segment delivered results in line with expectations as segment revenue Record date Friday, 23 June 2023
increased by 11% to R1,4 billion (H1 FY: 2022: R1,3 billion) while segment operating profit Payment date Monday, 26 June 2023
increased by 4% to R318 million (H1 FY: 2022: R305 million). The increase in segment Shareholders may not dematerialise or rematerialise their shares between Wednesday,
operating profit was adversely impacted by the sale of R250 million of Quince’s lease and 21 June 2023 and Friday, 23 June 2023, both days inclusive.
loan receivables book and reduced minute volume at the Business Communications On behalf of the Board
cluster, due to loadshedding, which offset an otherwise pleasing performance from the
remainder of the ICT Segment companies.
Mohamed Husain Alan Dickson Nick Thomson
The ICT Segment announced the acquisition of IQbusiness, an independent management
and technology consulting firm. This acquisition is subject to the fulfilment of normal Chair Chief Executive Officer Chief Financial Officer
suspensive conditions for a transaction of this nature and approval by the competition Sandton, 23 May 2023
1
Extracted financial information from the Unaudited Condensed Consolidated Interim Financial Statements for the six months ended 31 March 2023.
Directors Registered office
reunert.com
For more information log on to the Reunert website at
MJ Husain (Chair)*, T Abdool-Samad*, Nashua Building
AE Dickson (Chief Executive Officer), Woodmead North Office Park
LP Fourie (Chair of the Audit Committee)*, 54 Maxwell Drive
Woodmead, Sandton
JP Hulley*,TNM Eboka*, RJ Boettger*, S Martin*, PO Box 784391
Dr MT Matshoba-Ramuedzisi*, M Moodley Sandton, 2146
Sponsor
One Capital Sponsor Services Proprietary Limited
NA Thomson (Chief Financial Officer) Telephone +27 11 517 9000
17 Fricker Road, Illovo, 2196
Investor enquiries
* Independent non-executive Karen Smith 24 May 2023 (publication date)
#16725
E-mail karens@reunert.co.za.
