Annual Report Home   Downloads
Decrease font size   Increase font size   E-mail page   Print page
DIRECTORS' report    
The authorised capital of the company remained unchanged. During the year 26 800 (2006: 160 800) ordinary shares were issued at R5,45 per share, 95 200 (2006: 741 100) at R14,10 per share, 110 400 (2006: 467 100) at R15,80 per share, 66 600 (2006: 66 600) at R17,30 per share, 502 200 (2006: 446 060) at R15,99 per share, 20 400 (2006: 33 300) at R17,70 per share and 30 000 (2006: 0) at R41,90 per share. Options exercised in terms of the Reunert 1985 Share Option Scheme accounted for this increase.

530 900 shares were issued at the nominal value of R0,10 per share in terms of the employee transaction whereby South African employees of Reunert, its subsidiaries, RCCF and RRS who do not otherwise benefit from any existing employee share incentive scheme acquired 100 shares each. 563 631 shares previously owned by Bargenel were bought back and cancelled. Both of these transactions were communicated to shareholders in the circular dated 13 December 2006 and were approved at the annual general meeting on 6 February 2007.
The attributable profit for the year in relation to the prior year was adversely affected by the abnormal items incurred in the current year, as detailed in note 5 to the annual financial statements.

The performance of the divisions and the group’s results are reviewed in the Group at a glance and the segmental analysis.
An interim ordinary dividend No 162 of 73 cents (2006: No 160 of 63 cents) per share was declared on 17 May 2007, and a final ordinary dividend No 163 of 241 cents (2006: No 161 of 210 cents) per share was declared on 20 November 2007.

A total distribution of 314 cents (2006: 473 cents) per ordinary share was declared relating to the 2007 financial year.

An interim 5,5% cumulative preference dividend No 44 was declared on 18 June 2007 and a final dividend No 45 will be declared on 31 December 2007.
During the year a major change took place in ATC which is more fully dealt with in note 35 to the annual financial statements.

Reunert sold its investment in the ordinary shares of Bargenel during the year (refer note 36).

Your directors are of the opinion that the publication of information on all the company’s subsidiaries in this report would entail expense out of proportion to the value to shareholders.

Annexure A to this report, however, sets out the principal subsidiaries of the company.
During this financial year the following special resolutions were passed by subsidiaries of Reunert: Bargenel Investments Ltd adopted new memorandum and articles of association and reorganised and increased its authorised share capital. CBI-electric Telecommunication Cables (Pty) Ltd changed its name to CBI-electric Aberdare ATC Telecom Cables (Pty) Ltd and adopted new articles of association. Interpine Properties (Pty) Ltd changed its name to Nashua Holdings (Pty) Ltd. Nashua Connect (Pty) Ltd changed its name to Nashua Holdings (Pty) Ltd and then back to Nashua Connect (Pty) Ltd. Nashua Mobile (Pty) Ltd changed its articles of association. RC&C Holdings Ltd changed its name to Nashua Electronics Ltd. Full details of these resolutions may be viewed at the company’s registered office.
Ms ND Orleyn, having been elected to the board of directors during the year, is required to retire at the next annual general meeting but, being eligible, offers herself for re-election. Ms KC Morolo and Messrs BP Connellan, BP Gallagher and G Pretorius retire by rotation at the forthcoming annual general meeting and all offer themselves for re-election.

The names of the directors in office at 30 September 2007 and to the date of this report, are set out in the Board of directors.

The name and address of the company secretaries are set out in the Corporate administration and information.
At the reporting date, fully paid ordinary Reunert shares were held directly and indirectly by the directors as indicated in the table below:
  Direct beneficial
  2007  2006 
BP Connellan 30 523  30 523 
KS Fuller —  — 
BP Gallagher 298 313  346 709 
SD Jagoe —  — 
KJ Makwetla —  — 
KC Morolo —  — 
GJ Oosthuizen 33 300  198 664 
ND Orleyn —  — 
G Pretorius 66 600  378 720 
DJ Rawlinson 325 120  395 820 
MJ Shaw —  — 
JC van der Horst —  — 
  753 856  1 350 436 
  Indirect beneficial
  2007  2006 
BP Connellan 9 000  9 000 
KS Fuller —  — 
BP Gallagher —  — 
SD Jagoe 18 000  18 000 
KJ Makwetla —  — 
KC Morolo —  — 
GJ Oosthuizen —  — 
ND Orleyn —  — 
G Pretorius —  — 
DJ Rawlinson —  — 
MJ Shaw —  — 
JC van der Horst —  — 
  27 000  27 000 

These holdings have remained unchanged up to 6 December 2007.

Executive directors of the company held unexercised options to subscribe for 447 000 (2006: 613 500) ordinary shares in terms of the Reunert 1985 Share Option Scheme. These options are due to expire as follows:
– 167 000 on 13 May 2013
– 280 000 on 29 August 2015

The directors have no financial interest in contracts entered into by the group during the year. For further information on directors’ share options, refer to note 29 to the annual financial statements.

The directors are not aware of any matters or circumstances arising between the end of the financial year and the date of these financial statements which materially affect the financial position or results of the company or the group.
The attributable interest of the company in the profits and losses of its consolidated subsidiaries for the year ended 30 September 2007 is:
In the aggregate net income 704,1  570,7 
In the aggregate net losses (18,3) (5,1)
  685,8  565,6 
The directors confirm that the group and company have adequate resources to operate for the foreseeable future and will remain a viable going concern in the year ahead.
  Back to top