Reunert was established in 1888 and listed on the Johannesburg Stock Exchange in 1948. The Group is a constituent of the JSE Industrial Goods and Services (Electronic and Electrical Equipment) sector.
Reunert operates mainly in South Africa, with operations and offices in Australia, Lesotho, India, Mauritius, the USA and Zambia. Reunert accesses several export markets in Europe and Asia through distributors. The Group’s Head Office is in Woodmead, Johannesburg, South Africa.
Reunert operates a diversified portfolio of business units organised into its Electrical Engineering, ICT and Applied Electronics Segments.
Reunert has three operating segments: Electrical Engineering, ICT and Applied Electronics. These segments are defined by their core competencies, technology, products and services, markets and customer segmentation. Business units in these segments are grouped into clusters should they reach material financial scale or if they deliver vertical services or operate in similar markets.
Manufactures and sells a comprehensive range of power cables and low-voltage circuit breakers.
Performance for 2022
In 2022, the segment continued its strong growth trajectory. African Cables benefited from stable power cable volumes, improved product mix, receipt and delivery of several large contracts, and improved operational efficiencies.
Circuit Breakers’ export product volumes increased, and the United States and Australia subsidiaries posted record results. CBi: Energy was launched to consolidate the Group’s energy management initiatives.
Telecom Cables, the segment’s telecommunication cable joint venture, was placed into business rescue. This business has been loss-making for several years, despite numerous restructuring initiatives. Reunert awaits the outcome of this process.
Customers
- Commercial property developers
- Original equipment manufacturers
- Municipalities
- General power distributors
- Utilities
- Mining industry
- Telecommunications
- State-owned entities
Growth indicators and opportunities
Gross domestic fixed investment is an indicator of growth.
South Africa’s electrical expenditure will increase investment in new electrification projects, including renewable energy and maintenance and replacement programmes for public and commercial infrastructure.
Smart metering is becoming more relevant as the internet of things grows. Electric vehicles and renewable energy are accelerating growth areas.
Financial highlights for 2022
OPERATING PROFIT
R436 million
Contribution to
Group revenue
(2021: 56%)
Contribution of
Group segment
operating profit
(2021: 38%)
Segment operating
profit* margin
(2021: 7%)
Offers a range of total workspace solutions, business communication, connectivity, rental-based finance products and sophisticated digital and system integration solutions.
Performance for 2022
Despite persistent supply chain challenges, the ICT Segment performed in line with expectations. Local economic conditions remained challenging for the segment as sustained load shedding affected its core small business customer base.
The Business Communication cluster suffered the most from load shedding, which resulted in a loss of voice minutes. Despite growing the customer base, increased sales of complementary products and positive results from last mile broadband connectivity, the cluster’s profitability declined.
Nashua’s new dual brand initiatives alleviated global supply chain challenges while sales in complementary products were good. This resulted in solid growth in operating profit.
+OneX expanded its service offering by acquiring application and software development and end user computing capabilities during the year. A strong performance in its unified communications offering and the rapid growth of the new-age ICT services boosted revenue and operating profit.
The Rental-based Finance cluster delivered a good financial performance as the quality of the loan book and collections improved.
Customers
- Corporates
- State-owned entities
- Small and medium-sized enterprises (SMEs)
Growth indicators and opportunities
Business confidence and South Africa’s gross domestic product are key indicators for growth.
This segment will grow by offering a broad range of ICT business solutions to enterprise and SME customers and by providing best-in-class digital transformation solutions and services.
Financial highlights for 2022
OPERATING PROFIT
R644 million
Contribution to
Group revenue
(2021: 25%)
Contribution of
Group segment
operating profit
(2021: 62%)
Segment operating
profit* margin
(2021: 24%)
Develops, supplies and maintains high-precision electronic products for defence and commercial applications. Provides renewable energy solutions, including solar energy engineering, procurement and construction management, solar asset ownership and energy storage.
Performance for 2022
The segment experienced strong growth in performance due to excellent export orders received and continued demand for renewable energy. The segment’s overall performance was pleasing, driven by solid performances from Fuchs Electronics, Reutech Solutions, Reutech Radar Systems, Dynamic Control and Dynateq International. This recovery is a testament to the relevance and quality of our products and our ability to collaborate with customers to create new products.
The Renewable Energy cluster capitalised on the growing market for renewable energy, and the demand for battery storage solutions was especially strong.
Customers
- Corporates
- Municipalities
- Governments
- State-owned entities
- Local and international defence forces
- Mining industry
- Commercial property developers
Growth indicators and opportunities
Global defence spend and gross domestic product are key indicators of growth.
Renewable energy generation and storage is a rapidly developing market with significant growth opportunities.
Secure communications and encryption hold promising prospects, specifically in fintech.
In aggregate, Reunert’s target export markets are increasing their defence spend.
Reunert’s surface monitoring radar equipment is well-positioned to leverage opportunities in the fast growing smart mining market.
Financial highlights for 2022
OPERATING PROFIT
R164 million
Contribution to
Group revenue
(2021: 19%)
Contribution of
Group segment
operating profit
(2021: 10%)
Segment operating
profit* margin
(2021: 5%)