| Tue 15 Nov 2011, 7:06 | | RLO - Reunert Limited - Audited group results for the year ended 30 September |
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RLO
RLO
RLO - Reunert Limited - Audited group results for the year ended 30 September
2011 and cash dividend declaration
Reunert Limited
Incorporated in the Republic of South Africa
Reg. No 1913/004355/06
Share Code: RLO
ISIN code: ZAE000057428
Preference share code: RLZP
ISIN code: ZAE00005930
("Reunert", "the group" or "the company")
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2011 AND CASH DIVIDEND
DECLARATION
Normalised headline earnings per share increased by 14%
Total cash dividend per share increased by 15%
Condensed group income statement
for the year ended 30 September
Notes 2011 % Restated
R million change 2010
R million
Revenue 10 922,7 2 10 675,1
Earnings before interest, 1 472,7 12 1 320,6
taxation, depreciation,
amortisation, other income
and dividends
Other income 40,5 54,9
Earnings before interest, 1 1 513,2 10 1 375,5
taxation, depreciation and
amortisation (EBITDA)
Depreciation and 121,8 8 112,7
amortisation
Operating profit 1 391,4 10 1 262,8
Net interest and dividend 2 40,9 (31) 59,2
income
Abnormal items 3 346,4 (34,0)
Profit before taxation 1 778,7 38 1 288,0
Taxation 425,9 13 376,6
Profit after taxation 1 352,8 48 911,4
Profit attributable to:
Non-controlling interests 15,7 31 12,0
Equity holders of Reunert 1 337,1 49 899,4
Basic earnings per share 5 & 6 809,0 61 503,3
(cents)
Diluted earnings per share 5 & 6 803,3 61 498,8
(cents)
Headline earnings per share 5 & 6 598,3 18 505,5
(cents)
Diluted headline earnings 5 & 6 594,1 19 501,1
per share (cents)
Normalised headline earnings 5 & 6 590,0 14 515,7
per share (cents)
Normalised diluted headline 5 & 6 585,9 15 511,1
earnings per share (cents)
Cash dividend per ordinary 330,0 15 287,0
share declared (cents)
Taxation rate including 23,9 18 29,2
abnormal item
Taxation rate excluding 29,7 4 28,5
abnormal item
EBITDA as a % of revenue 13,9 8 12,9
Condensed group statement of comprehensive income
for the year ended 30 September
2011 2010
R million R million
Profit after taxation 1 352,8 911,4
Other comprehensive income, net of taxation:
Losses arising from translating the financial - (1,9)
results of foreign subsidiaries
Gain on disposal of investment (348,6) -
Effective portion of gains on hedging 4,2 6,0
instruments
Income tax relating to components of other (1,2) 1,2
comprehensive income
Total comprehensive income 1 007,2 916,7
Total comprehensive income attributable to:
Non-controlling interests 15,7 12,0
Equity holders of Reunert 991,5 904,7
Condensed group balance sheet
as at 30 September
Notes 2011 Restated
R million 2010
R million
Non-current assets
Property, plant and equipment and 702,0 635,3
intangible assets
Goodwill 7 654,9 492,1
Investments and loans 8 46,1 44,3
Accounts receivable 965,9 846,0
Deferred taxation 32,2 40,4
Non-current assets 2 401,1 2 058,1
Current assets
Inventory and contracts in progress 885,5 863,3
Accounts receivable and derivative 2 176,7 2 359,8
assets
Investment - 793,5
Cash and cash equivalents 643,0 1 878,1
Current assets 3 705,2 5 894,7
Total assets 6 106,3 7 952,8
Equity attributable to equity holders
of Reunert
Ordinary 3 879,7 4 432,4
Preference 0,7 0,7
3 880,4 4 433,1
Non-controlling interests 55,2 37,9
Total equity 3 935,6 4 471,0
Non-current liabilities
Deferred taxation 99,6 122,0
Long-term borrowings 9 0,7 710,9
Non-current liabilities 100,3 832,9
Current liabilities
Accounts payable, derivative 1 984,9 1 956,6
liabilities, provisions and taxation
Bank overdrafts and short-term 85,5 692,3
portion of long-term borrowings
(including finance leases)
Current liabilities 2 070,4 2 648,9
Total equity and liabilities 6 106,3 7 952,8
Condensed group statement of changes in equity
for the year ended 30 September
2011 2010
R million R million
Share capital and premium
Balance at the beginning of the year 140,9 116,0
Issue of shares 59,4 24,9
Balance at the end of the year 200,3 140,9
Share-based payment reserve
Balance at the beginning of the year 732,4 679,6
Share-based payment expense and deferred 18,6 52,8
taxation thereon
Balance at the end of the year 751,0 732,4
Fair value adjustment reserve*
Balance at the beginning of the year 345,6 338,4
Other comprehensive income (345,6) 7,2
Balance at the end of the year - 345,6
Equity transaction with BEE partner (35,3) (35,3)
BEE shares+ (276,1) (276,1)
Treasury shares#
Balance at the beginning of the year (125,7) -
Purchases made during the year (1 127,9) (125,7)
Balance at the end of the year (1 253,6) (125,7)
Non-distributable reserves
Balance at the beginning of the year 10,0 11,9
Other comprehensive income - (1,9)
Transfer to retained earnings (8,9) -
Balance at the end of the year 1,1 10,0
Retained earnings
Balance at the beginning of the year 3 641,3 3 199,9
Profit after taxation attributable to 1 337,1 899,4
equity holders of Reunert
Transfer from non-distributable reserves 8,9 -
Taxation charge on transaction with BEE - (2,0)
partner
Cash dividends declared and paid (494,3) (456,0)
Balance at the end of the year 4 493,0 3 641,3
Equity attributable to equity holders of 3 880,4 4 433,1
Reunert
Non-controlling interests
Balance at the beginning of the year 37,9 26,7
Share of total comprehensive income 15,7 12,0
Dividends declared and paid (4,2) (0,8)
Non-controlling interest introduced 2,0 -
Other 3,8 -
Balance at the end of the year 55,2 37,9
Total equity at end of the year 3 935,6 4 471,0
* This reserve related to fair value adjustments on financial assets
classified as "available-for-sale" financial assets.
+ These are shares held by Bargenel Investment Limited (Bargenel), a
company sold by Reunert to an accredited BEE partner in 2007. Until
the amount owing by the BEE partner is repaid to Reunert, Bargenel is
to be consolidated by the group as the significant risks and rewards
of ownership of the equity have not passed to the BEE partner.
# Commencing in August 2010, a group subsidiary purchased Reunert
shares on the open market. Up to 30 September 2010, 2,1 million
shares had been bought at an average price of R59,18 per share. No
further purchases were made after 4 February 2011 at which time a
total of 19,2 million shares had been bought at an average price of
R65,37 per share.
Condensed group cash flow statement
for the year ended 30 September
2011 Restated
R million 2010
R
million
EBITDA 1 513,2 1 375,5
Decrease in net working capital 47,7 318,3
Other (net) (1,6) 26,3
Cash generated from operations 1 559,3 1 720,1
Net interest and dividend income 40,9 59,2
Taxation paid (438,8) (407,9)
Dividends paid (including to non- (498,5) (456,8)
controlling interests)
Net cash flows from operating activities 662,9 914,6
Net cash flows from investing activities 484,7 (313,3)
Capital expenditure (99,4) (148,9)
Net cash flows from acquisition of (213,6) (180,3)
businesses
Net proceeds on disposal of investment in 791,2 -
NSN
Other 6,5 15,9
Net cash flows from financing activities (1 768,9) (103,8)
Shares issued 59,4 24,9
Shares repurchased during the period (1 127,9) (125,7)
Repayment of Quince long-term borrowings (699,9) -
Other (0,5) (3,0)
(Decrease)/increase in net cash resources (621,3) 497,5
Net cash resources at the beginning of the 1 185,9 688,4
year
Net cash resources at the end of the year 564,6 1 185,9
Cash and cash equivalents 643,0 1 878,1
Bank overdrafts and other short term (78,4) (692,2)
borrowings
Net cash resources 564,6 1 185,9
Notes
2011 Restated
R million 2010
R
million
Note 1
EBITDA
EBITDA is stated after:
- Cost of sales 7 683,0 7 555,5
- Other expenses excluding depreciation and 1 773,4 1 727,5
amortisation
- Other income 40,5 54,9
- Realised loss on foreign exchange and (2,9) (15,5)
derivative instruments
- Unrealised gain/(loss) on foreign 9,3 (56,0)
exchange and derivative instruments
Note 2
Net interest and dividend income
Interest received 46,9 65,0
Interest paid (6,6) (7,2)
Dividend income 0,6 1,4
Total 40,9 59,2
Note 3
Abnormal items
Gain on disposal of investment 348,2 -
Less: Costs associated with disposal (1,8) -
Net gain on disposal of investment in Nokia 346,4 -
Siemens Networks SA (Pty) Limited (NSN)
(refer to note 8)
Taxation (refer to note 4) 0,3 -
BEE transaction expense - (34,0)
Net abnormal items after current year 346,7 (34,0)
taxation
Note 4
Taxation
An estimate of the expected capital gains tax payable on the disposal
of NSN was provided for in prior years through deferred taxation. The
current year taxation effect of the gain (refer to note 3) is due to
an adjustment between the estimate provided for previously and the
amount expected to be paid.
Note 5
Number of shares used to calculate earnings
per share
Weighted average number of shares in issue 165,3 178,7
used to determine basic earnings, headline
earnings and normalised headline earnings
per share (millions)
Adjusted by the dilutive effect of 1,1 1,6
unexercised share options granted
(millions)
Weighted average number of shares used to 166,4 180,3
determine diluted basic, diluted headline
and diluted normalised headline earnings
per share (millions)
Note 6
6.1 Headline earnings
Profit attributable to equity holders of 1 337,1 899,4
Reunert
Headline earnings are determined by
eliminating the effect of the following
items from attributable earnings:
Gain on disposal of NSN (after current year (346,7) -
tax credit of R0,3 million)
(refer to notes 3 and 4)
Net (gain)/loss on disposal of property, (1,5) 0,1
plant and equipment and intangible assets
(after tax charge of R0,6 million
(2010: RNil))
Non-controlling interests in loss on - 0,1
disposal of property, plant and equipment
and intangible assets
Net surplus on dilution in and disposal of - (0,2)
business (after tax of RNil)
Impairment charge recognised for property, - 4,0
plant and equipment
(after tax charge of R1,6 million)
Headline earnings 988,9 903,4
6.2?Normalised headline earnings
Headline earnings (refer to note 6.1) 988,9 903,4
Normalised headline earnings are determined
by eliminating the effect of the following
items from attributable headline earnings:
BEE transaction expense (after tax of RNil) - 34,0
IFRS 3 profit on acquisition of Nashua - (8,2)
Communications (Pty) Limited
(after tax of RNil)
Rate portion of revaluation of interest - 8,1
rate swap derivative assets and liabilities
(after tax charge of R3,1 million)
BEE share of headline earnings adjustments - (6,9)
988,9 930,4
Net economic interest in profit (13,8) (8,8)
attributable to all BEE partners (refer to
note 10)
Normalised headline earnings 975,1 921,6
Note 7
Goodwill
Carrying value at the beginning of the year 492,1 460,6
Acquisition of businesses 162,8 31,5
Carrying value at the end of the year 654,9 492,1
Note 8
Investments and loans
Loans - at cost 44,5 42,8
Other unlisted investments - at cost 1,6 1,5
Financial instrument - NSN option at fair - 299,2
value*
Financial instrument - investment in NSN at - 494,3
fair value*
Carrying value at the end of the year 46,1 837,8
Non-current investments and loans 46,1 44,3
Current investments* - 793,5
Directors` valuation of unlisted
investments
- NSN option and investment - 793,5
- Other unlisted investments 1,6 1,5
* As announced on the Securities Exchange News Service (SENS)
on 4 February 2011, Reunert exercised its option to sell its
investment in NSN and received R793,5 million from the Nokia
Siemens Networks group.
2011 Restated
R million 2010
R
million
Note 9
Long-term borrowings
Total long-term borrowings (including 7,7 711,0
finance leases)
Less: Short-term portion (including finance (7,0) (0,1)
leases)
0,7 710,9
In February 2011 Quince repaid its long-
term securitised borrowings.
Note 10
BEE transactions
BEE transactions, where the significant
risks and rewards of ownership in respect
of their equity interests have not passed
to the BEE partners, are not recognised as
non-controlling interests.
Had the non-controlling interests been
recognised, the effect would be the
following:
- Net economic interest in current year 13,8 8,8
profit that is attributable to all BEE
partners
- Balance sheet interest that is 77,3 154,1
economically attributable to all BEE
partners
Note 11
Major Corporate Activity
All the acquisitions were funded from cash resources within the group.
Acquisition of Nashua franchises
With effect from 1 November 2010 Nashua Holdings purchased 51% of the
Nashua Tygerberg and Nashua Paarl franchises for R10,6 million and R7,1
million respectively. The non-controlling shareholders of these 2
businesses provided R1,0 million of equity each.
With effect from 1 May 2011 the business and net assets of Nashua Durban
were purchased by Nashua Holdings for R48,9 million. In terms of the
agreement with the previous owners the balance of R47,8 million is
payable six months after the acquisition date.
With effect from 1 June 2011 the business and net assets of Nashua Cape
Town were purchased by Nashua Holdings for R67,0 million. In terms of
the agreement with the previous owners the balance of R41,1 million is
payable six months after the acquisition date.
The R41,1 million goodwill arising on these acquisitions is due to the
price paid being in excess of all assets delivered, and represents the
intrinsic value of the existing businesses to produce profits into the
future. These purchases are in line with Nashua Office Automation`s
strategy of acquiring a controlling share in all key existing franchise
operations.
Acquisition of ECN Telecommunications (ECN)
With effect from 1 June 2011 Reunert purchased the business and net
assets of ECN for R171,9 million.
The goodwill of R107,8 million arising from the acquisition consists
largely of the synergies expected from enhancing the group`s ability to
provide fully converged communications solutions.
Acquisition of ITmatic
With effect from 1 July 2011 the business and net assets of ITmatic were
purchased by CBI-electric: low voltage division of Reunert for R1,0
million.
The R13,9 million goodwill arose on the acquisition as ITmatic is a
leading process control and automation systems integrator and the
acquisition is set to accelerate the division`s growth into other
foreign markets.
Nashua ECN ITmatic Group
franchis R million R R million
es million
R
million
Net assets acquired
Deferred taxation (5,4) (7,8) - (13,2)
Property, plant and 28,6 67,4 1,0 97,0
equipment and
intangible assets
Inventory 17,0 5,2 - 22,2
Accounts receivable* 74,2 49,5 4,8 128,5
Payables and (21,9) (50,2) (18,7) (90,8)
provisions
Goodwill 41,1 107,8 13,9 162,8
Cost of investment 133,6 171,9 1,0 306,5
Profit/(loss) since 4,8 (0,6) (0,3) 3,9
acquisition
Revenue for the 12 325,7 397,4 65,2 788,3
months ended 30
September 2011 as
though the acquisition
date had been 1
October 2010
Profit/(loss) for the 14,0 2,8 (7,4) 9,4
12 months ended 30
September 2011 as
though the acquisition
date had been 1
October 2010
* Gross contractual 74,2 49,5 4,8 128,5
amounts of accounts
receivable at
acquisition date
* The best estimate of - - - -
contractual cashflows
of accounts receivable
not expected to be
received
Note 12
Basis of preparation
These condensed consolidated financial statements have been prepared in
accordance with the framework concepts and the recognition and
measurement criteria of IFRS and its interpretations adopted by the
International Accounting Standards Board (IASB) in issue and effective
for the group at 30 September 2011 and the AC500 standards issued by the
Accounting Practices Board. This condensed consolidated information has
been prepared using the information as required by IAS 34 - Interim
Financial Reporting, and comply with the Listings Requirements of the JSE
Limited and the requirements of the Companies Act, No. 71 of 2008 of
South Africa. This report was compiled under the supervision of MC Krog
CA (SA) (Group financial director). These financial statements do not
include all the information required for full annual financial statements
and should be read in conjunction with the consolidated financial
statements as at and for the year ended 30 September 2011.
The groups` accounting policies, as per the audited annual financial
statements for the year ended 30 September 2010, have been consistently
applied. These accounting policies comply with IFRS.
Note 13
Unconsolidated subsidiary
The financial results of Cafca Limited, a subsidiary
incorporated in Zimbabwe, have not been consolidated in the
group results as the directors believe there is a lack of
control and the amounts involved are not material to the group`s
results.
At 30 September 2011 the company`s retained earnings amounted to
US$ 2,8 million.
Note 14
Related party transactions
The group entered into various transactions with related parties
which occurred in the ordinary course of business and under
terms that are no more favourable than those arranged with
independent third parties.
Note 15
Events after balance sheet date
No events have occurred after the balance sheet date that
require additional disclosure or adjustment to the annual
financial statements.
Note 16
Audit opinion
The consolidated financial statements for the year have been
audited by Deloitte & Touche. The consolidated financial
statements, the accompanying unmodified audit report, as well as
the unmodified audit report on this set of condensed financial
information are available at the company`s registered office.
Note 17
Prior year numbers
Income Statement
The prior year numbers have been restated to
fully eliminate intergroup transactions between
Reunert and Quince. The impact of the
eliminations is reflected below:
Previous Restated Difference
R R R million
million million
Revenue 10 10 675,1 4,8
679,9
Earnings before interest, tax, 1 281,4
depreciation, amortisation, other
income and dividends 1 320,6 (39,2)
EBITDA 1 336,3 1 375,5 (39,2)
Operating profit 1 223,6 1 262,8 (39,2)
Net interest and dividend income 98,4 59,2 39,2
Profit before tax 1 288,0 1 288,0 -
Profit after tax 911,4 911,4 -
Balance sheet
Disclosures relating to Quince have been
condensed into the appropriate line items on the
consolidated balance sheet. Quince non-current
receivables of R821,7 million, Quince
receivables of R646,3 million, Quince bank
balances and cash of R72,5 million, Quince long-
term borrowings of R699,9 million and Quince
bank borrowings of R691,5 million have been
incorporated into the relevant line items of the
Reunert group balance sheet.
Supplementary information 2011 2010
R million (unless otherwise stated)
Net worth per share (cents) 2 401 2 502
Current ratio (:1) 1,8 2,2
Net number of ordinary shares in issue 161,6 177,2
(million)
Number of ordinary shares in issue (million) 199,3 197,8
Less: BEE Shares (million) (18,5) (18,5)
Less: Treasury shares (million) (19,2) (2,1)
Capital expenditure 99,4 148,9
- expansion 62,6 111,0
- replacement 36,8 37,9
Capital commitments in respect of property, 57,1 65,1
plant and equipment
- contracted 7,2 11,0
- authorised not yet contracted 49,9 54,1
Commitments in respect of operating leases 170,0 85,8
Condensed segmental analysis
2011 % % Restated %
R million of change 2010 of
total R total
million
Revenue*
CBI-electric 3 336,0 30 13 2 961,3 28
Nashua 6 927,5 64 1 6 867,2 65
Reutech 639,3 6 (19) 791,0 7
Other 3,0 - 11 2,7 -
Total operations 10 905,8 100 3 10 622,2 100
NSN 16,9 (68) 52,9
Revenue as reported 10 922,7 2 10 675,1
* Inter-segment
revenue is immaterial
and has not been
disclosed.
Operating profit
CBI-electric 592,1 43 14 521,1 43
Nashua 794,2 58 21 653,7 54
Reutech 48,7 3 (20) 60,6 5
Other (60,5) (4) (25,5) (2)
Total operations 1 374,5 100 14 1 209,9 100
NSN 16,9 (68) 52,9
Operating profit as 1 391,4 10 1 262,8
reported
Total assets
CBI-electric 1 580,8 1 494,8
Nashua 3 847,7 3 595,4
Reutech 355,7 659,7
Other* 322,1 2 202,9
Total assets as 6 106,3 7 952,8
reported
* Included in Other are bank balances of R224,7 million (2010:
R1 207,6 million) held by the group`s treasury.
COMMENTARY
Revenue for the year has remained relatively constant, with an increase of 2%
from R10,7 billion to R10,9 billion. Operating profit reflected an increase of
10% to R1,4 billion whilst normalised headline earnings per share increased by
14% to 590,0 cents. After accounting for the abnormal item of R346,4 million
relating to the gain on the sale of the NSN investment, earnings per share
increased by 61% to 809,0 cents.
In the current year we have condensed the presentation relating to Quince in
respect of the income statement and balance sheet. Comparatives have been
restated accordingly.
CBI-electric
The CBI-electric group of companies recorded a strong performance during 2011.
All operations performed well in the difficult environment that has persisted
over the past few years. Revenue increased by 13% to R3,3 billion and operating
profit improved by 14% to R 592,1 million.
Although market conditions remain challenging, the demand for energy cables has
continued at levels seen in the latter half of 2010 and the beginning of 2011.
The price of copper has remained high, but relatively stable during the year.
The higher revenue achieved at these copper prices has a small impact on margins
as we have continued to keep copper stocks as low as possible. Increased
efficiency by the operations in this segment contributed to improved gross
margins.
Building activity has remained subdued within South Africa, but the increased
level of exports to Europe and Asia has assisted in supporting revenue and
margins within the low voltage segment. The Australian operation has reflected
sustained profitability, which has had a favourable impact on the results and,
together with cost control and a focus on increased efficiency, has contributed
to better margins.
The telecommunications cables joint venture again had a turbulent year,
experiencing weak demand in the first six months, with some improvement being
reflected in the second half of the year. The planned fibre optic cable
connection between the major South African cities has led to demand for fibre
and micro-duct increasing. However, the low demand for copper cable remains a
point of concern.
Nashua
Nashua performed to expectation in a quiet market. A number of acquisitions
were made in the segment which added to revenue, enabling marginal growth of 1%
to be achieved. These acquisitions, which included four franchises and ECN,
together with substantial increases in the contributions from Quince and Nashua
Electronics, resulted in operating profit growth of 21% to R794,2 million.
The acquisition of ECN from 1 June 2011 has been very beneficial to the group.
It has achieved good market penetration and is currently billing over 50 million
minutes a month. The conversion of the Least Cost Routing (LCR) business to the
ECN Voice over Internet Protocol (VoIP) network is meeting our customer
expectations. While this migration will take another 18 months, we are
confident that we will retain the majority of the customers we are targeting
during this process.
Quince`s profitability returned to normal levels with the reduction in bad
debts. The business is now focused on financing our Office Automation and
Telecommunications equipment customers. We are confident that bad debts will be
negligible in the year ahead.
Nashua Electronics` sales reduced due to the operation exiting the consumer
market. The addition of Kyocera Mita to its product offering has been positive
and has led to a return to profitability.
Nashua Mobile had a satisfactory year despite the reduction in interconnect
rates. The conversion of its LCR business to ECN`s VoIP platform is on-going.
The focus on mobile data and voice resulted in more than 27 000 additional net
connections during the year.
The Office Automation operations experienced increased unit sales, but a quiet
market resulted in margins remaining under pressure. Increased offerings in the
print service and data management and storage areas increased the operation`s
share of the tender business. The group will continue with its strategy of
purchasing the larger franchises to get closer to its customers.
Reutech
Revenue for the year decreased by 19% to R639,3 million, while operating profit
decreased 20% to R48,7 million. The contribution from Fuchs was substantially
reduced due to the late receipt of an export order. The Radar division, through
its mining surveillance radars, has had a successful year while the other
businesses performed as expected.
NSN
Reunert exercised its option to sell its shares in NSN in January 2011. The
sale of the investment realised R793,5 million, which resulted in an abnormal
profit of R346,4 million.
CAPITAL INVESTMENT AND CASH MANAGEMENT
Our capital investment of R99,4 million on property, plant and equipment and
intangible assets will ensure that we have both the capability and capacity to
meet future demand. Reunert has invested R306,5 million in acquiring four Nashua
franchises, ITmatic and ECN. The acquisition of the four franchises is in line
with the group`s strategy to acquire the larger franchises. ECN has enhanced
Reunert`s capability to retain the margin related to its LCR base. ECN also
provides Reunert with a network which enables us to provide customers with voice
and data solutions. The ITmatic acquisition by the CBI-electric low voltage
division gives us the capability of being a systems integrator with an Africa
wide footprint and extensive technical capability.
Cash resources of R1,1 billion were used to repurchase 17,1 million shares at an
average price of R66,14. The balance sheet has remained robust with cash and
cash equivalents amounting to R564,6 million. In addition, available cash of
R1,1 billion is currently used to finance the Quince asset rental book.
PROSPECTS
The South African economy and the economies of most of our export markets remain
fragile and 2012 is expected to be yet another challenging year. We will
continue to promote innovation, a commitment to meeting our customers`
requirements and sound governance principles.
Subject to prevailing economic conditions not worsening, we anticipate achieving
growth in earnings per share in the year ahead.
The financial information on which the above forecast is based has not been
reviewed and reported on by the company`s external auditors.
DIRECTORATE AND APPRECIATION
At the annual general meeting held on 8 February 2011, Messrs BP Connellan and
KJ Makwetla retired from the board. The board expresses its appreciation to them
for their valuable service and insights to the group over many years.
The board is pleased to welcome Ms YZ Cuba and Mr SG Pretorius as independent
non-executive directors. Yolanda was appointed with effect from 1 January 2011
and Brand with effect from 22 February 2011.
Mr NC Wentzel resigned from the board on 21 September 2011. Mr GJ Oosthuizen
resigned from the board on 14 October 2011. On 21 September 2011, Mr DJ
Rawlinson was appointed chief executive and Ms MC Krog, the financial director
designate, was appointed financial director. The board is pleased to welcome
Manuela to the board as an executive director.
CASH DIVIDEND
Notice is hereby given that a final cash dividend, number 171 of 253 cents per
share (2010: 220 cents per share) has been declared by the directors for the
year ended 30 September 2011, bringing the total cash dividend for the year to
330 cents per share (2010: 287 cents per share). In compliance with the
requirements of Strate, the following dates are applicable:
Last date to trade (cum dividend) Friday, 13 January 2012
First date of trading (ex-dividend) Monday, 16 January 2012
Record date Friday, 20 January 2012
Payment date Monday, 23 January 2012
Shareholders may not dematerialise or rematerialise their share certificates
between Monday, 16 January 2012 and Friday, 20 January 2012, both dates
inclusive.
On behalf of the board
Trevor Munday David Rawlinson
Chairman Chief Executive
Sandton,
14 November 2011
Directors: TS Munday (Chairman)*, DJ Rawlinson (Chief Executive), YZ Cuba, BP
Gallagher, SD Jagoe*, MC Krog, TJ Motsohi*, KW Mzondeki*, SG
Pretorius*, NDB Orleyn**, Dr JC van der Horst*, R van Rooyen*
* Independent non-executive; ** Non-executive
Registered office: Lincoln Wood Office Park, 6 - 10 Woodlands Drive, Woodmead,
Sandton, PO Box 784391, Sandton, 2146
Telephone +27 11 517 9000
Transfer secretaries
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg,
2001, PO Box 61051, Marshalltown, 2107
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
Secretary`s certification
In terms of section 85 of the Companies Act, 71 of 2008, I certify that, to the
best of my knowledge and belief, the company has lodged with the Companies and
Intellectual Property Commission for the financial year ended 30 September 2011
all such returns as are required of a public company in terms of the aforesaid
Act and that all such returns are true, correct and up to date.
NG Camhee
(Appointed effective 1 April 2011)
Group Company Secretary
Enquiries
Carina de Klerk +27 11 517 9000 or e-mail invest@reunert.co.za.
CB Electric Reutech Nashua
For more information log on to the Reunert website at www.reunert.com.
Date: 15/11/2011 07:06:42 Produced by the JSE SENS Department.
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