Reutech prospects good, but clouds loom


Reunert says the prospects for its defence unit, Reutech, are good, although results may not be as strong as 2009.

The group annual report, released today says Reutech “had a bumper year” for the period to September 30 with revenue growing by 40% to R874 million and operating profit increasing by 55%.

“Reutech contributed R212 million to group operating profit with higher exports being a notable contributor to its success,” the report states.

“The anticipated award of certain key long-term local orders will, over the next three to five years, lead to a more balanced distribution between its local and export business.

“Prospects for our defence division are good. All exports were repeat business and in many instances, we have supplied the same product to the same customer for more than five years; which is a good situation.

“However, predicting the timing of when orders will be placed is difficult. It is thus quite possible that the new year may not be as strong as 2009.”

Reunert Group CE Gerrit “Boel” Pretorius last month said Reutech’s “radios, radars and fuses are now supplied to many countries around the globe. The mining surveillance radar, a safety product that we have developed, is being sold or leased to most multinational mining companies in increasing numbers.”