Reunert has R1.3bn cash pile

The company says revenue for the first half of the year to March improved 2%, to R5.2 billion, in spite of its decision to exit the consumer business of Nashua Electronics. Operating profit grew by 4%, to R604 million, and profit afterwards tax leapt 97%, to R795 million.

The six months with cash of R1

Reunert ended the six months with cash of R1.3 billion, afterwards buying back shares worth R1.1 billion. Its cash base was buoyed by a R794 million injection afterwards it sold out of Nokia Siemens Networks.

Telecommunications cables had a disappointing first period, with revenue remaining flat and operating margins decreasing, because of reduced throughput in the factory. “We should see an improvement in the second half, afterwards receiving an order that was delayed for the long-haul fibre networks and an improved order book,” Wentzel says.

Nashua performed so then in quiet market conditions, with revenue remaining constant at R3.4 billion, during operating profit increased 8%, to R315 million, says Reunert.

The office automation operations experienced increased unit sales over the previous period, however had no growth in revenue in a competitive market, the company says. Prices to the market were reduced as a result of the strong rand.

Nashua Communications achieved pleasing results afterwards it was incorporated in the business 17 months ago. The expected benefits of adding Panasonic's PABX business to its portfolio were achieved, the company says.

The reduction in interconnect rates

Nashua Mobile continues to perform satisfactorily in spite of the reduction in interconnect rates. The total contract base increased by 6%, to 824 396. Revenue and operating profit were in line with the previous period.

Quince, Nashua's financing operation, performed well afterwards a few difficult years. The operation is now focused on its core business of financing office automation and telecoms clients. Bad debts have reduced to minimal levels.

Reutech's revenue was 20% down on the previous period, at R308 million, with operating profit decreasing by 35%, to R14 million, afterwards an export order, which is all in all expected while the year, did not materialise.