Denel Vehicle Systems profit up slightly


Denel Vehicle Systems (DVS) made a slightly better profit, of R110 million, for the 2016/17 financial year compared to the year before that, and signed a number of important contracts, including for armoured vehicles and turrets.

According to the 2016/17 Denel annual report, Denel Vehicle Systems made a profit of R110 million for the 2016/17 financial year on R1.171 billion in revenue of which R862 million was from export contracts. This compares to a R90 million profit for 2015/16 and R664 million in revenue.

The vehicle side of the business has been progressing well, with a number of N35 (RG35) armoured vehicles being delivered to the United Arab Emirates over the last financial year and deployed in theatre.

The N35 started life as the BAE Systems Land Systems South Africa (LSSA) RG35, before the company was taken over by Denel to become Denel Vehicle Systems (DVS). The design was subsequently sold to NIMR, which is manufacturing the vehicle as the N35 in the UAE. The company is producing both 4×4 and 6×6 versions. In November 2015 Denel announced a R900 million contract with NIMR over the development and supply of the N35. The contract covers initial production in South Africa and subsequent production in the UAE.

Denel Vehicle Systems also received a contract for 24 RG31 mobile mortar platforms from the UAE. The first of these was shipped in July 2016. Denel Vehicle Systems said the 24-vehicle order follows on the successful delivery of 73 vehicles that are already in service with the UAE Armed Forces (RG31 Nyala mortar carrier version with 120mm mortar from Singapore; UAE designation Agrab-2).

In the annual report, Denel stated that DVS had secured a follow-on order for the supply of nine RG31 vehicles to “a customer in the UAE”.

Other business from the UAE in 2016/17 saw Denel Vehicle systems receive an order “for the supply of the first prototype RG12 vehicle, with further opportunity to supply additional vehicles”.

Other milestones revealed in the latest Denel annual report include securing a first order for the new Self Defence Remotely Operated Weapon station (SDROW) designed and developed by the Mechatronics division, from Namibia. The country ordered eight RG32M armoured patrol vehicles and four SDROW turrets, for delivery in 2017.

Denel Vehicle Systems in the 2016/17 financial year also unveiled and launched the Africa Truck demonstrator vehicle at Africa Aerospace and Defence (AAD) 2016; delivered Bell transfer cases; and carried on with an equipment renewal process.