Reunert Limited Provides Earnings Guidance for the Half Year Ended March 31, 2020
June 10, 2020 at 02:40 pm
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Reunert Limited provided earnings guidance for the half year ended March 31, 2020. For the period, the company expects operating profit to be between ZAR 357 million and ZAR 394 million, being a decline of between 36% to 42% in the operating profit of the prior comparative period, with the reduction in operating profit attributable to the performance of the Electrical Engineering segment because of the reasons outlined above. Noting the expected trading performance outlined above, the impact of the COVID-19 pandemic and the abnormal item, Shareholders are accordingly advised that the Company has reasonable certainty that it will report: loss per share of between 162 cents and 180 cents (2019: earnings per share of 227 cents), being a decline of between 171% and 179% compared to the previous results; and headline loss per share of between 72 cents and 80 cents (2019: headline earnings per share of 253 cents), being a decline of between 128% and 132% compared to the previous results.
Reunert Limited is a diversified group organized around 3 areas of activity:
- electric engineering services (51.9% of net sales): design, manufacturing, installation and maintenance of electric cables, fiber optics, transformers, low, medium and high voltage switching systems, etc. primarily for the public services, mining industry and real estate construction sectors;
- telecommunication services (22.2%): design and development of office solutions and vocal communication systems, and networking of data for professionals, individuals, government administrations and parastatal companies;
- design and manufacturing of defense systems and equipment (25.8%): communication tactic systems, terrestrial and naval research systems, fuses, artillery products, etc.;
- other (0.1%).
Net sales are distributed geographically as follows: South Africa (70.8%), Africa (15.1%), Asia (5.6%), Europe (4.9%), Australia (1.9%) and Americas (1.7%).
REUNERT LIMITED 
