|
IST Stakeholder The year now nearing its end has been a demanding but generally productive one for IST. Last month we were pleased to report that the performance turnaround initiated in 2000 was being sustained, with a 468% surge in headline earnings and healthy growth at all levels at the interim stage. The group remains well on track to achieve or better its earnings forecast for the full year to February 2002. The results for the 2001/2 year will be published in mid-April 2002; in the meantime, the following recent developments may be of interest to you. Buyback of shares You may have seen the recent announcement that IST had bought back 11 million of its own shares on the open market. We intend to cancel these shares as soon as practically possible. The general repurchase forms part of IST's strategy to improve shareholder value by increasing earnings per share and return on equity through effective management of capital. Specialist nuclear subsidiary established We have set up a new business, IST Nuclear Power Systems, to focus on our further involvement in the Pebble Bed Modular Reactor project now that the initial feasibility study has shown it to be broadly viable. This means that the project has advanced to the stage where the substantial effort we are investing in it needs to be accommodated in a distinct and dedicated structure. Our PBMR team has until now functioned as part of the industrial division. The former managing director of that division, Giel de Lange, is heading IST Nuclear. On the subject of PBMR, you may have seen recent media reports that British Nuclear Fuels' future participation in the project has been questioned in the light of that company's financial situation. A final decision has yet to be made, but we understand from the PBMR company that BNF's continued involvement is not regarded as a critical issue. IST Industrial focuses on core business Following the establishment of IST Nuclear, IST Industrial will focus on its traditional business, which is the design and supply of superior-quality fluid systems to major industrial and mining projects. The R30 million contract IST Industrial recently won for the expansion of the compressed air plant at the Mozal aluminium smelter is typical of the challenging projects the division's advanced engineering competence and project management skills equip it to undertake. The repositioned IST Industrial is being headed by Andr Strydom, who was previously a director of this division. The future of Petroman We reported earlier this year that, after a difficult gestation period, the Petroman fuel management system had been successfully redeveloped and commissioned at the sites for which it was originally intended. There was significant market interest in this system and we consequently gave considerable thought to the possibility of a next-generation Petroman product for additional applications. We have now concluded, however, that the commercial potential for such a product does not justify the further investment of time, effort and money in its development. Petroman will therefore not form part of the group's future offering. Operational update The high level of activity I noted at the interim stage has continued across all the divisions. This is evident from the substantial tenders - totalling more than R500 million - which are currently being adjudicated. Positive developments in recent weeks have included the extension by Telkom of IST Telecom's supply contract for the UMC 1000 digital loop carrier and by Eskom of IST Energy's national contract for the supply of remote terminal units and substation control systems. On behalf of all at IST, I would like to take this opportunity of thanking you very much for your support for or interest in the group during the past year. We wish you a happy and restful festive season and a prosperous 2002. 30 November 2001 Harry Coetzee Chief Executive
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
