|
Third Quarter Overview Nine months ended 31 March 2002. This report is aimed at enhancing our shareholders` awareness of the group`s activities in line with group policy that information be shared with the market at regular intervals. Overview of the business for the nine months ended 31 March 2002 Group turnover for the nine-month period under review was marginally higher than that of the comparable period for the previous year. The telecommunications market remained slow to respond to the introduction of new networks, with the result that the Telecom division as well as the Industrial Electronics division experienced slow trading conditions. Defence electronics exports continued to grow. Telecommunications Divisional turnover to the end of the third quarter was marginally below that of the same period for the previous year. Operating margins continued to be maintained. The Telecom division continues to invest in software solution enterprises that have developed their own intellectual property in specialised applications. This strategy will also enable the division to penetrate the global market place by exporting these solutions. The Telecom division now has a diversified mix of established products, system solutions and networking capabilities. The expansion of the business into sub-Saharan Africa has made good progress, with systems solutions being supplied to corporate customers and network operators in this region. Demand for enterprise systems and services remained stable on the back of supply agreements with our main customers. Industrial Electronics The turnover of this division was marginally below that of the comparable period for the previous year, but with improved margins. Deliveries have commenced for locally produced mid-range rectifier systems to a number of customers in the telecommunications market. Two large supply agreements for integrated energy management systems for distributors of electricity are in the process of being finalised. The finalisation of these agreements is unlikely to contribute materially to our business this financial year. The joint venture with Kathrein, the global leader in antenna manufacture, is developing according to plan and should be fully implemented by July 2002. Defence Electronics The turnover of the defence business units continued to grow backed by a strong order book. Margins improveded along with this increased business and owing to a more effective loading of production and design facilities. Initial deliveries of some large export orders have been well received by customers and medium-term follow-up orders are being negotiated. Defence electronics products on offer target peacekeeping operations, relief programmes and anti-terror activities and these markets are expected to remain buoyant. Joint marketing with our international partners has proved very successful and has opened the doors to previously inaccessible international markets. Prospects Business conditions in the local telecommunications market are expected to improve as soon as the uncertainty around the liberalisation of the industry is resolved. The drive to expand the telecommunications business into sub- Saharan Africa has made good progress with the recent conclusion of new orders. The first major energy management agreements are being negotiated following successful pilot installations. The group`s defence electronics business, which offers South African developed solutions, is well placed to continue to compete with best of breed systems in the international market and is expected to show further improvement in performance. The current market conditions are likely to continue at present levels to financial year-end. The unexpected upswing in group turnover experienced during the fourth quarter of last year is not anticipated to reoccur this year. Earnings generated in the second half of the financial year are expected to be marginally up on those of the first half. With a firm order book in excess of R1 300 million, the group is well positioned for the future. Date: 14/05/2002 04:00:00 PM Produced by the SENS Department
| 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 ] | |||||||||||||
|
|||||||||||||
