Denel Dynamics Missiles has posted improved earnings for the 2012 financial year, with earnings before interest and taxes of R11 million, up from R5 million the previous year.
Denel’s Annual Report 2012 revealed that the unit recorded a turnover of R619 million for 2012 (down from R729 million the previous year) and export turnover of R194 million (up slightly from R192 million the previous year). Denel noted that, historically, Denel Dynamics Missiles has posted financial losses due to onerous contracts, amongst other factors. Although it has recorded marginal profits for the second successive year, its order cover and the closure of key contracts remain challenges.
The company’s confirmed order book is down by R117 million, at R598 million for the 2012 financial year ending March. Denel said one of the unit’s highlights was the posting of a nominal profit, with a continued year-on-year improvement in overall business performance in accordance with the “Voyage to Excellence” programme launched in 2007.
Some of the unit’s highlights include the conclusion of Umkhonto missile deliveries to a European country, which were completed in 2011/2012.
Denel Dynamics Missiles said the development of the A-Darter missile is on track for production to commence in 2014. Final missile qualification and performance validation is under way to achieve critical technical milestones in 2012/13 and 2013/14. As part of this evaluation the first two successful guided missile firings from a Gripen aircraft were successfully completed during February 2012. A-Darter is being developed jointly by South Africa and Brazil. “The success of this joint development is likely to lead to further alliances with other developing nations. There are discussions about follow-on collaborative projects and marketing strategies,” Denel said.
Denel Dynamics CEO, Jan Wessels earlier this year said that, “I believe the DoD will contribute to the funding of a follow-up development missile programme, but its exact nature and funding model are still under discussion.”
In May 2011, Denel Dynamics Missiles concluded a contract for the sale of the Umbani precision guided bomb kit to an export customer. “This contract is a prime example of how the substantial investment in intellectual property over a number of years has been afforded an opportunity to yield a return for SA,” Denel said.
Other notable achievements included the integration and flight-testing of the Ingwe missile on the Eurocopter EC635 helicopter and the first flight test with an alternative multipurpose warhead. In addition, Denel Dynamics Missiles introduced the fire-and-forget configuration of its Raptor stand-off weapon. The full autonomous flight was a first for the Raptor weapon system.
Denel Dynamics Missiles employs 732 people. Its current range of products and systems includes the A-Darter, the Umkhonto-IR air defence missile, the Ingwe and Mokopa anti-armour missiles, precision-guided munitions and the Raptor II stand-off weapon.