Missile and unmanned aerial vehicle (UAV) solutions house Denel Dynamics nearly doubled its losses in the 2018/19 financial year to more than R400 million on the back of a fall in revenue, Denel’s annual report has revealed.
Denel Dynamics recorded revenue of R542 million (including R271 million export) in the 2018/19 financial year and a loss of R419 million. This compares with revenue of R1.25 billion and loss of R281 million for the 2017/18 financial year.
Although Denel reported a net loss of R1.749 million in 2018/19, it was cushioned by improved profits from associate companies Barij Dynamics, which is a partnership between Denel Dynamics, which has a 49% stake in the company. Barij Dynamics was previously known as Tawazun Dynamics. One of its main products is the Al Tariq guided bomb, with the final delivery of 1 000 weapons to the UAE concluded at the end of April 2018 under the MBARC programme. The final payment was made in August 2018. “This was a milestone achievement that contributed to an upswing in Denel’s financials,” the company said.
Other highlights include final flight testing on the Orca weapon system, which was completed by the end of May 2018. “The performance of the weapons led to a contract placed by the UAE Air Force on our partner in the UAE (Barij Dynamics) for 4 000 weapons. During the development phases of the contract, the weapon system was industrialised and made ready for production.”
Another highlight was Denel Dynamics moving ahead with the A-Darter air-to-air missile, which received its certification in September this year, marking the end of the development process. In its annual report, Denel said 36 production launcher electronic relay units (LERUs) had been completed and shipped to Marvin Engineering Company as part of the Kamas Launcher Project. (Project Kamas is the A-Darter’s procurement project.)