Dear stakeholder

The year 2022 was both rewarding and challenging for Reunert. Our financial performance was strong with growth in all three segments resulting in a 16% increase in segment operating profit, which we consider the best metric to measure sustainable profit, with a growth of 9% in headline earnings. Growth realised in all three segments. There were strong improvements in the Electrical Engineering and Applied Electronics Segments and another steady performance from the ICT Segment.

This robust financial performance delivered an improvement in the quality of earnings, measured by return on capital employed (ROCE). This performance is set against a backdrop of poor local economic growth and persistent supply chain issues, including a chronic shortage of electronic chips. Despite these challenges, we were pleased to reward shareholders with an 8% increase in dividends.

The Group’s strategy execution progressed well in 2022. We retain our key strategic focus on the fast-growing markets of renewable energy and the expansion of the ICT Segment. In both areas, we are experiencing rapid growth and are beginning to reap the benefits of scale. We are confident that our strategic initiatives will continue to deliver on their potential. You can read more about our investment case here.

Our prospects for 2023 are positive. Overall, the Group’s order books are much improved and there are early signs of relief from supply chain challenges. While global recessionary pressures and South African socio-economic challenges pose risks to growth, we are well positioned to continue our trajectory of financial performance.

We invite you to read more about our commitment to executing our strategy and delivering value for all stakeholders.

Download our 2022 Integrated Report