Reunert comprises a diversified portfolio of businesses in the fields of Electrical Engineering, Information Communication Technologies (ICT) and Applied Electronics.
The Group was established in 1888, by Theodore Reunert and Otto Lenz, and has contributed to the South African economy in numerous ways. Reunert was listed on the JSE in 1948 and is included in the industrial goods and services (electronic and electrical equipment) sector of the JSE. Reunert's primary operations are in South Africa with a permanent presence in Australia, Lesotho, Mauritius, the USA and Zambia.
Reunert accesses several export markets in Europe and Asia through distributors.
Reunert’s Head Office is in Woodmead, Johannesburg, South Africa.
Reunert’s 2022 financial performance continued on the positive upward trajectory of the last two years. The Group delivered a 16% increase in segment operating profit, which the Group considers to be the best metric by which to measure sustainable profit, with growth realised in all three segments. There were strong improvements in both the Electrical Engineering and Applied Electronics Segments and another steady performance from the ICT Segment. These performances delivered increased earnings metrics for the Group and a strong improvement in the quality of earnings, measured by the return on capital employed (ROCE). In addition, despite numerous challenges in the Group’s supply chain, resulting in additional cash being invested into working capital, the Group retained its ability to reward shareholders through an 8% increase in dividends. The Group expects the impact of the electronic chip shortages and other global supply chain challenges, as outlined below, to steadily decline during the 2023 financial year, allowing for a gradual reduction in working capital.
The Group suffered from the global electronic chip supply shortages and complex supply chain dynamics. The situation deteriorated in the second half of 2022 and resulted in a loss of sales and operating profit at Nanoteq, the Group’s Encryption business, Omnigo, the Group’s manufacturer of printed circuit boards (PCBs), and Nashua, due to Ricoh’s inability to meet the demand for office automation products. The Group’s cash position was negatively impacted by this, as additional investment had to be made into raw material stock holdings to mitigate stock shortages. This was compounded by work in progress and trade receivable balances increasing at year-end, as either sales were achieved later than planned or the underlying production commenced later in the year than anticipated. However, there are early signs of improvement in supply in the electronic component market and supply chains are showing signs of recovery.
Incorporated in the Republic of South Africa |
PRELIMINARY REVIEWED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - PDF