|
Reunert Limited
Incorporated in the Republic of South Africa
(Reg No 1913/004355/06)
Share code: RLO
ISIN code: ZAE000005914
* Headline earnings per share +up 31%
* Final Dividend per share +31% up
Audited results for the year ended 30 September 2002
Group Income Statement Year ended 30 September
2002 2001
R million R million
(Audited %
Notes (Audited) and change
restated) 9
Revenue 5 062,9 4 229,8 20
Earnings before
interest, tax,
depreciation and
amortisation (EBITDA) 559,7 425,3 32
Depreciation 46,2 43,8 5
Amortisation of 41,4 2,3
goodwill
Operating profit 1 472,1 379,2 24
Net interest and 2 36,5 59,1 (38)
dividend income
Profit before abnormal 508,6 438,3 16
items
Abnormal items 3 (18,7) -
Profit before taxation 489,9 438,3 12
Taxation 177,3 145,6 22
Profit after taxation 312,6 292,7 7
Share of associate 2 89,6 81,8 10
companies` net profits
Profit after tax 402,2 374,5 7
including associate
companies
Earnings attributable 31,6 42,3 (25)
to outside
shareholders in
subsidiaries
Earnings attributable
to ordinary
shareholders in
Reunert Limited 370,6 332,2 12
Basic earnings per 4 198,1 173,3 14
share (cents)
Diluted basic earnings 4 194,6 170,9 14
per share (cents)
Headline earnings per 5 229,5 174,8 31
share (cents)
Diluted headline 5 225,4 172,4 31
earnings per share
(cents)
Dividend per ordinary
share declared and
proposed for
the current year 118,0 91,0 30
(cents)
Taxation rate 33,4 33,0
excluding amortisation
(%)
EBITDA as a % of 11,1 10,1
turnover
Note 1
Operating profit
Operating profit is
stated after:
- Cost of sales 3 639,7 3 036,6
- Other income (21,8) (9,6)
- Other expenses 885,3 777,5
excluding depreciation
and amortisation
Note 2
Net interest and
dividend income
Interest received 55,8 64,5
- from RC&C Finance 23,0 32,1
Company
- external 32,8 32,4
Interest paid (22,7) (13,1)
Dividend income other 3,4 7,7
than from associates
Total 36,5 59,1
Dividend income from
associates included in
share of
associate companies` 108,4 70,9
profits
Note 3
Abnormal item
The group`s
attributable share of
the impairment of
fixed assets
in ATC, an equity (18,7) -
accounted associate
Taxation - -
Total (18,7) -
Note 4
Basic earnings per
share and diluted
basic earnings per
share
The earnings used to
determine both basic
earnings per share and
diluted earnings per
share being earnings
attributable to
ordinary
shareholders in 370,6 332,2
Reunert (Rm)
The weighted average
number of shares in
issue used to
determine basic
earnings per share and
headline earnings
per share (millions of 187,0 191,7
shares)
Adjusted by the
dilutive effect of
unexercised share
options
available to 3,4 2,7
executives employed in
the group (millions of
shares)
Weighted average
number of shares used
to determine
diluted earnings per
share and diluted
headline earnings
per share (note 5) 190,4 194,4
(millions of shares)
Note 5
Headline earnings per
share and diluted
headline earnings per
share
Headline earnings per
share and diluted
headline earnings
per share have been
calculated using the
weighted average
number of shares in
issue as detailed in
note 4.
Headline earnings are
determined by
eliminating the effect
of capital items in
attributable earnings
as follows:
Earnings attributable 370,6 332,2
to ordinary
shareholders
Amortisation of 41,4 2,3
goodwill
Attributable portion 18,7 -
of impairment (note 3)
Other (net) (1,4) 0,7
Headline earnings 429,3 335,2
Note 6
Goodwill
Carrying value at the 10,9 -
beginning of the
period
Add: Acquisitions of 390,5 13,2
businesses/investments
Less: Amortisation for (41,4) (2,3)
the period
Carrying value at the 360,0 10,9
end of the period
The goodwill is
written off over
periods varying
between one and ten
years.
Note 7
Investments
Cost plus equity 151,6 188,4
accounted earnings
excluding goodwill
At directors` 586,9 188,4
valuation
Note 8
Finance Company
accounts receivable
Collectable within one 338,2 278,0
year
Collectable after one 615,7 467,1
year
953,9 745,1
Note 9
Accounting policies
These audited results are prepared in accordance with South African Statements
of Generally Accepted Accounting Practice (SA GAAP). Accounting policies used in
the preparation of these audited results are consistent with those used in the
annual financial statements for the year ended 30 September 2002.
Reunert has adopted the SA GAAP which became effective during the current
financial year. This has resulted in changes to accounting policies, requiring
the restatement of the comparative figures for 2001. The main changes involve
the depreciation of properties and accounting for dividends. Previously, all
properties which the group regarded as investment properties were not
depreciated. Now, in terms of AC 123 and AC135, the group is depreciating all
properties. In accordance with AC 107, dividends to shareholders are now
accounted for in the period that the dividend declaration takes place.
Except for the above changes, the group`s accounting policies are consistent
with those of the prior period.
Note 10
Major acquisitions
In December 2001 the group acquired Marconi`s 21,5% shareholding in Siemens
Telecommunications (Pty) Ltd ("Sietel"). During January 2002, Siemens exercised
an option to purchase 9% of Marconi`s 21,5% from Reunert. The net effect of this
transaction was that Reunert purchased an additional 12,5% of Sietel at a cost
of R161,3 million, including goodwill of R137,7 million. In December 2001
Reunert purchased the remaining 42% of Nashua Nedtel Communications (Pty) Ltd
("NNC") not previously held by it for R261,6 million, including goodwill of
R220,7 million. The name of NNC was subsequently changed to Nashua Mobile (Pty)
Ltd.
Group Balance Sheet
At 30 September
2002 2001
R million R million
(Audited and
Notes (Audited) restated)9
Non-current assets
Property, plant and 157,1 161,8
equipment
Goodwill 6 360,0 10,9
Investments 7 151,6 188,4
RC&C Finance Company 8 953,9 745,1
accounts receivable
Deferred taxation 25,9 42,0
assets
1 648,5 1 148,2
Current assets
Inventory and 659,8 496,5
contracts in
progress
Accounts receivable 712,9 595,5
Cash and cash 283,5 303,5
equivalents
1 656,2 1 395,5
Total assets 3 304,7 2 543,7
Shareholders` funds
Ordinary 1 305,0 1 112,4
Reunert Limited (234,6) (234,6)
shares bought by a
subsidiary
Preference 0,7 0,7
1 071,1 878,5
Outside shareholders 103,5 137,9
in subsidiaries
1 174,6 1 016,4
Non-current
liabilities
Deferred taxation 45,9 48,6
liabilities
Long-term borrowings - 2,7
45,9 51,3
Current liabilities
Short-term loans and 2,8 13,8
bank overdrafts
RC&C Finance Company 838,0 324,0
short-term
borrowings
Accounts payable, 1 243,4 1 138,2
provisions and
taxation
2 084,2 1 476,0
Total equity and 3 304,7 2 543,7
liabilities
Segmental analysis
Year ended 30 September
2002 2001
R million R million
(Audited %
and
(Audited) % restated)9 % change
Revenue
Electronics
Office systems 876,6 12 694,3 13 26
Consumer products 2 782,1 39 2 335,3 44 19
and services
Telecommunications 1 959,5 27 922,5 17 112
Reutech 375,3 5 399,7 7 (6)
Total Electronics 5 993,5 83 4 351,8 81 38
Electrical
Engineering and
Cables
Low-voltage 555,2 8 399,2 8 39
electrical
Cables 629,9 9 607,8 11 4
Total Electrical 1 185,1 17 1 007,0 19 18
Engineering and
Cables
Total operations 7 178,6 100 5 358,8 100 34
Less: Reunert`s
attributable
portion of
associate (2 115,7) (1 129,0)
companies` revenue
Revenue as 5 062,9 4 229,8 20
reported
Operating profit
before goodwill
amortisation
Electronics
Office systems 147,2 21 104,5 20 41
Consumer products 175,2 25 123,2 24 42
and services
Telecommunications 209,0 30 102,7 20 104
Reutech 38,5 6 40,0 8 (4)
Total Electronics 569,9 82 370,4 72 54
Electrical
Engineering and
Cables
Low-voltage 94,8 14 74,0 14 28
electrical
Cables 27,6 4 70,4 14 (61)
Total Electrical 122,4 18 144,4 28 (15)
Engineering and
Cables
Total operations 692,3 100 514,8 100 34
Less: Reunert`s
attributable
portion of
associate (178,8) (133,3)
companies` net
operating profit
Operating profit
before
amortisation of
goodwill as 513,5 381,5 35
reported
Group Cash Flow Information
Year ended 30 September
2002 2001
R million R million
(Audited and
(Audited) restated) 9
EBITDA 559,7 425,3
Increase in net working capital (366,0) (44,5)
(Increase)/reduction in RC&C Finance (208,8) 6,5
Company accounts receivable
Other working capital changes (net) (157,2) (51,0)
Cash generated from operations 193,7 380,8
Net interest and dividends received 144,9 130,0
(including associates)
Taxation paid (209,0) (133,0)
Dividends paid (including outside (201,0) (169,0)
shareholders)
Net cash (outflow)/inflow from (71,4) 208,8
operating activities
Net asset additions (38,2) (48,6)
Other (net) 29,5 (5,9)
Net cash (outflow)/inflow from (80,1) 154,3
operations
Reunert Limited shares purchased by - (217,9)
subsidiary
Other acquisitions (442,9) (43,5)
Net decrease in cash and cash (523,0) (107,1)
equivalents
Net (borrowings)/cash and cash (34,3) 72,8
equivalents at beginning of the period
Net borrowings at end of the period (557,3) (34,3)
Cash resources of the group
Deposit on call with RC&C Finance 0,5 294,8
Company
Other cash reserves 283,5 303,5
284,0 598,3
Borrowings of the group
Short-term loans and bank overdrafts (2,8) (13,8)
RC&C Finance Company borrowings (838,5) (618,8)
(841,3) (632,6)
Net borrowings at end of the period (557,3) (34,3)
The deposits on call with the RC&C
Finance Company are repayable on
demand. RC&C Finance Company has long-
term banking facilities which can be
utilised to replace these deposits.
Group Statement of changes in equity
Year ended 30 September
2002 2001
R million R million
(Audited and
(Audited) restated)9
Balance at beginning of period as 878,5 810,7
previously reported
Adjustment to opening accumulated
profit due to changes
in accounting policies - 109,0
Net profit for the period 370,6 332,2
Dividends declared during the period (181,4) (156,5)
Shares issued in terms of the Reunert 2,8 0,4
Share Option Scheme
Reunert Limited shares bought by - (217,9)
subsidiary
Translation reserve movement during 0,6 0,6
the year
Balance at end of period 1 071,1 878,5
Supplementary information
At 30 September
R million (unless otherwise stated) 2002 2001
Net asset value per share (cents) 572 470
including goodwill
Net asset value per share (cents) 380 464
excluding goodwill
Current ratio including short-term
portion of RC&C Finance Company
accounts receivable (:1) 1,6 1,5
Net number of ordinary shares in issue 187,3 186,9
(million)
Number of ordinary shares in issue 204,5 204,1
Less: Held by subsidiary (17,2) (17,2)
Capital expenditure 42,0 52,8
- expansion 26,1 32,4
- replacement 15,9 20,4
Capital commitments 18,9 20,7
- contracted 9,4 3,3
- authorised not yet contracted 9,5 17,4
Commitments in respect of leases 65,2 82,5
- operating 65,2 82,5
- finance - -
Contingent liabilities 0,3 0,3
REVIEW OF RESULTS
Reunert is pleased to report that, for the fifth consecutive year, headline
earnings per share growth exceeded 25%. During these five years more than R1,2
billion has been distributed to shareholders by way of ordinary dividends
including the special dividend paid in 1999.
Revenue growth of 20% was due mainly to increased market share, acquisitions and
the growth in the South African economy over the past year. Savings in raw
material procurement, cost containment and improved operational efficiency
enabled the group to increase operating profit before amortisation and
depreciation by 32%.
The balance of Nashua Mobile was acquired from Nedcor and Metropolitan Life and
12,5% of Siemens Telecommunications was acquired from Marconi, increasing
Reunert`s share holding to 40%. The amortisation of the goodwill paid for
acquisitions increased significantly to R41m. As expected interest and dividend
income reduced as cash resources of R443m were utilized for acquisitions.
Headline earnings per share grew by 31%.
Cash flow from operations before acquisitions and dividends paid amounted to
R351m. The Finance Company had an extremely good year, increasing its Nashua
asset based rental book by R209m to R954m. This increase was financed through
long term facilities with three major banks.
REVIEW OF OPERATIONS
Electronics
Nashua produced good results with all its divisions, Office Automation, Finance
and Royce Imaging contributing to increased earnings.
NPC (Electronics) the exclusive distributor of Panasonic products in South
Africa improved earnings largely due to growth from business systems and non
consumer operations. The consumer market remained under pressure with the
increase in interest rates. The launch of the Futronic and Nintendo range of
products will enhance opportunities for this new business.
Nashua Mobile again produced a strong performance with the contract subscriber
base increasing to 265 000 and the prepaid customers growing to 45 000. Revenue
and operating income benefited from the growing base and the increased airtime
usage.
As anticipated, Reutech`s turnover and profits declined marginally. Order books
have grown considerably which will result in an improved performance in the year
ahead.
The group`s Telecommunications operations have had a pleasing year. The market
has continued to expand with the spend on the third cellular licence, the second
network operator and the telecommunication infrastructure spend in Africa.
ELECTRICAL ENGINEERING AND CABLES
CBI`s sales and profits grew strongly and further enhanced its position as a
dominant force in the local market with a wider product offering. Exports have
continued to grow in a weak international market.
African Cables increased sales and margins as the local market enjoyed increased
activity.
Reunert recently announced its acquisition of Marconi plc`s 51% stake in ATC at
below net asset value which increases the group`s holding to an effective 89,5%.
This acquisition is subject to the approval of the Competition authorities.
Although ATC incurred trading losses and stock write downs in the past year,
restructuring has taken place which, it is anticipated, will result in the
operation at least breaking even in the new financial year.
PROSPECTS
Currently the outlook for the group`s operations remains positive, consequently
management is confident that real growth in headline earnings per share will be
achieved in the new year.
DIVIDEND
Notice is hereby given that a final dividend No 153 of 88 cents per share (2001:
67 cents per share) has been declared by the directors for the year ended 30
September 2002. In compliance with the requirements of Strate, the following
dates are applicable:
Last date to trade (cum Friday, 17 January 2003
dividend)
First date of trading (ex Monday, 20 January 2003
dividend)
Record date Friday, 24 January 2003
Payment date Monday, 27 January 2003
Share certificates may not be dematerialised or rematerialised between Monday,
20 January 2003 and Friday, 24 January 2003, both dates inclusive.
On behalf of the board
Derek Cooper, Chairman Gerrit Pretorius, Chief Executive
Sandton, 18 November 2002
Secretaries` certification For the year ended 30 September 2002
The company has lodged with the Registrar all such returns as are required by a
public company in terms of the Companies Act.
R G Drakes
For Reunert Management Services Limited
Company Secretaries
audited results
The above results have been audited by the group auditors, Messrs Deloitte &
Touche, and a copy of their unqualified report is available for inspection at
the company`s registered office.
Hierdie verslag is ook in Afrikaans verkrygbaar.
Reunert Limited
Incorporated in the Republic of South Africa (Reg No 1913/004355/06) Share
code: RLO ISIN code: ZAE000005914
Directors: D E Cooper (Chairman)*, G Pretorius (Chief Executive), B P
Connellan*, B P Gallagher, S D Jagoe*, K J Makwetla*, G J Oosthuizen, D J
Rawlinson, M J Shaw*, C L Valkin*, Dr J C van der Horst*
*Non-executive
Registered office: Lincoln Wood Office Park, 6 - 10 Woodlands Drive, Woodmead,
Sandton
PO Box 784391, Sandton, 2146 Telephone (011) 517-9000
Transfer secretaries:
Computershare Investor Services Limited, 11 Diagonal Street, Johannesburg, 2001,
PO Box 61051, Marshalltown, 2107
Sponsor: Rand Merchant Bank Corporate Finance
Company secretaries: Reunert Management Services Limited
Visit our website at www.reunert.com
Date: 19/11/2002 07:05:00 AM Produced by the JSE 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 ] | |||||||||||||
|
|||||||||||||
