JSE-listed Reunert on Monday reported a 14% increase in normalised headline earnings a share, and a 10% increase in revenue, with particularly strong growth in the Reutech and CBI-electric business segments.
Normalised headline earnings jumped to 298c a share in the six months ended March 31, from 261c in the comparative period in 2011.
Headline earnings a share increased 16% to 304c, compared with the 263c recorded in the six months to March 2011.
The engineering, technology and defence group posted revenue of R5.7-billion, from R5.2-billion earned in the prior comparative period. Reutech and CBi-electric achieved revenue increases of 21% to R373-million and 15% to R1.7-billion, respectively.
Further, the company said that productivity and process improvements enabled an 18% growth in operating profit to R736-million.
The group’s Nashua business increased its revenues by 7% to R3.6- billion and its operating profit by 20% to R403-million owing in part to contributions from the franchises acquired by Nashua in the last half of 2011.
However, despite some improvements within its business units, Reunert warned that continued volatility in global markets provided an unpredictable backdrop for the South African economy.
“Reunert has experienced reasonable demand for most of its products and services in the electrical segment in the first six months. Our telecoms environment in the mobile side remains challenging but our VoIP [voice-over Internet protocol] offering and associated services are reflecting encouraging growth off a low base,” the company said.
Reunert pointed out that international economic events were having a knock-on effect in emerging markets and the group expected a challenging six months ahead.
The company increase the interim dividend to 95c a share, up 23% from 77c in 2011.