Reunert's revenues grow on higher demand for aluminium cables

Electrical engineering group Reunert raised its interim dividend 8 per cent to R1.13, despite flat revenue and a small drop in aftertax profit.

Reunert’s revenue grew 2 per cent to R4bn during the six months to end-March, it was noted in Reunert’s interim results statement on Tuesday. Aftertax profit fell 5 per cent to R453m.

Increased demand for aluminium rather than copper cables resulted in the revenue of its electrical engineering division falling 7 per cent to R2bn, CEO Alan Dickson said in the results statement.

This division was also hurt by delays in awarding key projects, which are now expected to materialise in the second half of its financial year.

Revenue in Reunert’s information and communications technology division fell 1 per cent to R1.7bn, but operating profit grew 2 per cent to R250m, driven by both efficiency gains and cost controls.

Its office automation business suffered from the rand’s weakening against the dollar.

The first-half operating results for Quince, its in-house finance company, were positive, mainly due to the higher loan book of R2.1bn, a 4 per cent increase on the prior period. Despite the continued challenging economic conditions, there was no increase in credit losses, Reunert said in the results statement.

Its applied electronics division experienced a revenue jump of 64 per cent to R696m, boosted by strong exports, which were assisted by SA’s weak currency.