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Audited consolidated financial statements and cash dividend declaration for the year ended 30 September 2025
REUNERT LIMITED
Incorporated in the Republic of South Africa
Registration number: 1913/004355/06
JSE and A2X share code: RLO
ISIN: ZAE000057428
("Reunert", "the Group" or "the Company")
AUDITED CONSOLIDATED FINANCIAL STATEMENTS1
and cash dividend declaration for the year ended 30 September 2025
The contents of this announcement are the responsibility of the board of directors of the Company (the Board). Shareholders are advised that this announcement
does not contain full or complete details and represents a summary of the information contained in the Group Audited Annual Financial Statements for the year ended
30 September 2025 (Group AFS), which are accessible via the JSE cloudlink at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/RLO/AFS_2025.pdf and on Reunert's
website (https://reunert.co.za/reporting-and-results.php) from Thursday, 20 November 2025. Shareholders and investors are advised to review the Group AFS in making
any investment decisions.
SALIENT FEATURES
30 September 30 September
2025 2024 %
Continuing operations
Group revenue (Rm)2 13 881 14 228 (2)
Operating profit (Rm)2 1 515 1 640 (8)
Earnings per share (cents)2 654 690 (5)
Headline earnings per share (cents)2 649 685 (5)
Total operations
Final dividend per share (cents) 293 276 6
Free cash flow (Rm)3 1 170
Free cash flow to profit for the year (%) 128% 118% 8
Net cash (Rm)4 743 536 39
Reunert delivers strong second half performance and creates momentum for growth
OPERATING ENVIRONMENT
The 2025 financial year (2025) was characterised by a challenging South African market, partially offset by positive growth in the Group's non-South African
markets. The defence sector remained strong and both the African and international markets in the Electrical Engineering Segment retained their solid growth
trajectory.
OVERVIEW
Within this operating environment, the Group's businesses have performed well, specifically in the second half of 2025 (H2 FY: 2025) where an increase of 6%
in continuing operations headline earnings per share (HEPS) was delivered over the prior comparative period. This strong second half performance enabled
the Group to recover much of the earnings shortfall from the first half of 2025 and resulted in a full year decrease in HEPS from continuing operations of
only 5% to 649 cents per share (cps) (2024: 685 cps).
In South Africa, the Group's businesses demonstrated good resilience, retained market share, controlled costs well and generated strong cash flows, all of
which reflect the strength of the Reunert investment case and the quality of the Group's assets. Good strategic progress was made by the Group in increasing
its presence in international markets and optimising the Group's portfolio.
Importantly, the Group's cash flow generation remained positive as free cash flow remained in line with historic norms at R1 170 million
(2024: R1 222 million), which enabled an increase in the final dividend declaration in line with growth in the H2 FY: 2025 financial results.
The pleasing strategic progress, the Group's positive financial performance, specifically the H2 FY: 2025 performance, and strong cash flows have generated
meaningful momentum in the Group. These established the base for the Group's growth trajectory into 2026.
GROUP RESULTS - CONTINUING OPERATIONS
The Group's revenue decreased by 2% to R13 881 million (2024: R14 228 million), while the Group's operating profit decreased by 8% to R1 515 million
(2024: R1 640 million). The Group has once again generated a robust cash flow from its operations of R1 623 million (2024: R1 866 million). The Group invested
R225 million (2024: R223 million) in fixed capital expenditure, of which R130 million was in respect of expansion projects (2024: R122 million). The Group has
total available funding facilities of R2 875 million (2024: R3 100 million) and remains in compliance with all its covenants. The net cash position of the
Group has improved to R743 million (2024: R536 million) and consequently the Group has been able to improve its total dividend (paid and declared) for the
financial year by 5% to 383 cps (2024: 366 cps).
SEGMENTAL REVIEW OF CONTINUING OPERATIONS
Electrical Engineering
The segment had a challenging year due to three primary matters, namely:
i. Negative growth in South Africa's gross domestic fixed investment;
ii. The United States of America (USA) import tariffs applied to South African imports; and
iii. Product mix and foreign exchange losses in Zambia.
These three factors were the primary reasons for segment revenue decreasing by 3% to R7 458 million (2024: R7 682 million), while segment operating profit
fell by 31% to R461 million (2024: R665 million).
South African power cable volumes fell by 9% as the expected fixed infrastructure investment failed to materialise. The business managed its cost base well
and lean manufacturing programs delivered improved efficiencies, but were insufficient to offset the financial impact of the decreased volumes.
In Zambia, total volumes remained nominally stable as decreased offtake from ZESCO, the Zambian power utility, was offset by improved volumes of power cable
and copper rod into the neighbouring regions. The product mix of these volumes resulted in lower margins being attained. The rapid appreciation of the
Zambian Kwacha against the US Dollar contributed to the decrease in profitability for the year. Importantly, the business environment in the country remains
positive for continued healthy financial performances.
The circuit breaker volumes in South Africa decreased slightly year-on-year but were more than offset by a strong export performance. The USA remains a
significant market and the actions taken have ensured that the circuit breaker business's market share has been retained and volumes into the USA are
expected to continue to increase.
ICT
The South African market for the Group's ICT businesses remained challenging as low GDP and weak business confidence extended sales cycles and reduced
market activity. In this environment, segment revenue remained flat at R3 903 million (2024: R3 897 million) and segment operating profit reduced by 9% to
R644 million (2024: R706 million).
The decrease in segment operating profit all occurred in the Solutions and Systems Integration Cluster as key customers reduced spending. Importantly, the
business restructured its cost base, aligning it to the expected future demand. The restructuring process, and all the associated costs, were concluded in
the current year.
The rest of the segment's clusters performed solidly and, collectively, delivered a growth in operating profit over the prior year. The Business
Communications Cluster performed well with a pleasing growth in operating profit.
In the Total Workspace Provider Cluster, Nashua delivered a stable revenue and operating profit result, despite complementary revenues coming under pressure
as renewable energy sales fell due to reduced loadshedding in the country.
The Rental-based Finance Cluster performed well. The cluster's revenue was negatively impacted by a lower average rental book than the prior year, and the
lower interest rates. This was, however, more than overcome by further efficiencies delivered through the implementation of improved control systems and
processes.
Applied Electronics
The Applied Electronics Segment's segment revenue decreased by 7% to R2 756 million (2024: R2 974 million). The reduction in revenue was caused by the
impact of a stronger Rand on the cluster's large foreign denominated export revenues and a reduced demand in the local maintenance and support services
market. The quality of the revenues was, however, much improved as segment operating profit increased by 21% to R500 million (2024: R414 million), driven by
efficient production, improved margins and some foreign exchange gains made on long-term export contracts.
Defence
The Defence Cluster had an excellent year. Record financial performances were delivered by the radar and fuze businesses as they executed their strong order
books and delivered improved operating profit and margins. There were also good performances from Dynamic Control, Etion Create and the communications
business, which all contributed to the strong operating profit and margin improvement for the cluster.
The long-term market demand for the cluster's products and services remains positive. All key geographies serviced by the cluster retain their strong demand
patterns and the cluster's growth trajectory is supported by a positive pipeline of orders-on-hand and contracts near conclusion.
The Defence Cluster progressed well on its initiatives of entrenching its market access in the key geographies of the Middle East and Europe.
Strategic intellectual property co-development projects in radar are nearing conclusion. This opens the opportunity for long-term participation in
subsequent production programmes and entrenches the radar business as a key partner in these rollouts. Good opportunities have also been developed across
the cluster on additional strategic intellectual property co-development projects.
Renewable Energy
The growth continued in the Group's solar energy business as EBITDA exceeded the prior year. The business delivered good project margins and increased the
key strategic target of the number of owned assets under management during the year. By year-end the owned, in-construction and near-financial close
Build-Own-Operate (BOO) plants increased by 22% to 95MW (2024: 78MW).
PROSPECTS
The momentum created through the Group's positive second half performance and strategy execution, positions Reunert well for growth in the 2026 financial
year. It is anticipated that the South African economy will steadily improve as the impact of the energy, rail and port infrastructure investments
continues, private participation in infrastructure projects increases and the benefits of the structural improvements flow into the economy. Reunert's track
record reflects that steady economic improvement results in positive operating leverage and improved financial performance. Pressure is, however, expected
to continue on the Electrical Engineering product volumes in the South African businesses until infrastructure investment increases, which is not anticipated
to change materially in the first half of the new financial year. The South African businesses in the Electrical Engineering Segment are at least expected
to perform in line with 2025's performance.
Reunert will continue executing on its strategy in 2026:
i. where solid growth is expected from offshore markets in the Defence Cluster and circuit breaker business;
ii. a re-focussed and restructured ICT Segment is set to deliver sustainable growth; and
iii. the Group's renewable energy investments are expected to grow in both asset ownership and an enhanced trading footprint.
CASH DIVIDEND
Notice is hereby given that a gross final cash dividend No. 199 of 293,0 cents per ordinary share (September 2024: 276,0 cents per ordinary share) has been
declared by the directors for the year ended 30 September 2025.
The dividend has been declared from retained earnings. A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt from, or
who do not qualify for, a reduced rate of withholding tax. Accordingly, for those shareholders subject to withholding tax, the net dividend amounts to
234,4 cents per ordinary share (September 2024: 220,8 cents per ordinary share). The issued share capital at the declaration date is 182 665 316 ordinary shares.
Income tax reference number: 9100/101/71/7P.
In compliance with the requirements of Strate Proprietary Limited and the JSE Limited Listings Requirements, the following dates are applicable:
Last date to trade (cum dividend) Tuesday, 20 January 2026
First date of trading (ex dividend) Wednesday, 21 January 2026
Record date Friday, 23 January 2026
Payment date Monday, 26 January 2026
Shareholders may not dematerialise or rematerialise their shares between Wednesday, 21 January 2026 and Friday, 23 January 2026, both days inclusive.
On behalf of the Board
Mohamed Husain Alan Dickson Mark Kathan
Chairman Chief Executive Officer Chief Financial Officer
Sandton, 19 November 2025
1 Extracted financial information from the Group AFS.
2 The reported comparative results have been re-presented to reflect Blue Nova as a discontinued operation.
3 Free cash flow is calculated as net cash inflow from operating activities before dividends less cash outflow from replacement of property, plant and
equipment and intangible assets.
4 Net cash is calculated as net cash and cash equivalents less external borrowings.
This announcement itself is not audited or reviewed. The Group AFS have been audited by KPMG Inc., who expressed an unmodified audit opinion
thereon.
Directors
MJ Husain (Chair)*, T Abdool-Samad*, RJ Boettger*, GB Dalgleish*, AE Dickson (Chief Executive Officer), TNM Eboka*, LP Fourie (Chair of the Audit
Committee)*, JP Hulley*, KM Kathan (Chief Financial Officer), Dr MT Matshoba-Ramuedzisi*, M Moodley, NA Thomson (retired 30 September 2025).
* Independent non-executive
Registered office
Nashua Building
Woodmead North Office Park
54 Maxwell Drive
Woodmead, Sandton
PO Box 784391
Sandton, 2146
Telephone: +27 11 517 9000
Investor enquiries
Karen Smith
E-mail: invest@reunert.co.za
For more information log onto the Reunert website at
reunert.com
Sponsor
One Capital Sponsor Services Proprietary Limited
17 Fricker Road, Illovo, 2196
20 November 2025 (publication date)
Date: 20-11-2025 01:00:00
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