Annual financial statements
 

Segmental analysis

 
 

Business segments

The segments identified are Electrical, operating as CBI-electric; Information, Communication and Technology (ICT) operating as Nashua; Defence operating as Reutech; and Other. The segments have been identified based on products, technology, services, markets and customer segmentation.

CBI-electric encompasses the design, manufacture, installation and maintenance of a complete range of power cables, the manufacture and supply of copper and optical fibre telecommunication cable, the manufacture and supply of low voltage distribution-, protection- and control equipment and the supply of high-and medium-voltage switchgear and transformers. The market here includes municipalities, parastatals, utilities, mining industry and the building industry.

Nashua is a provider of communication services and solutions; a provider of telecommunications solutions; a distributor of business systems products focusing mainly on office automation and telecommunications; a provider of voice communications and telecommunications and data networking solutions. In addition, the segment provides asset-based financial solutions to Reunert associated office automation suppliers. The market here is corporate and retail customers, government and parastatals.

Defence operates as Reutech and specialises in tactical VHF/UHF communication systems, designs and manufactures fuzes and related defence products for artillery, mortar, naval and aircraft weapon systems, develops and manufactures ground and naval search and tracking radar systems and designs and manufactures mining radar sensor systems used in open-cast mining. In addition, this segment manufactures and supplies remote controlled weapon platforms and supplies system engineering and logistic support services in telecommunications, radar, satellite, mining, fare management and transportation fields. Markets here are local and international defence forces and mining houses.

The Other segment is made up of the group administration function and the property portfolio in the group. Revenue is the external rentals received on property rentals.

The group’s operations are situated mostly in South Africa with operations in Australia, the United States of America, Lesotho and Zimbabwe. The revenue and profits for these various geographical regions are not material and it would not be meaningful to disclose this information.

Customers and grouping of customers are diverse and Reunert does not have a single customer or grouping of customers which meets the requirements to be separately disclosed in terms of IFRS 8 – Operating Segments.

Revenue     2011  
Rm  
  %     2010  
Rm  
  %     %  
change  
CBI-electric     3 336,0     30     2 961,3     28     13  
Nashua     6 927,5     64     6 867,2     65     1  
Reutech     639,3     6     791,0     7     (19) 
Other     3,0     –     2,7     –      
Total operations     10 905,8     100     10 622,2     100     3  
NSN     16,9         52,9         (68) 
Revenue as reported per the income statement     10 922,7         10 675,1         2  
Intersegment revenue is immaterial and has not been disclosed.  
 
Operating profit before interest, dividends and abnormal items     2011  
Rm  
  %     2010  
Rm  
  %     %  
change  
CBI-electric     592,1     43     521,1     43     14  
Nashua     794,2     58     653,7     54     21  
Reutech     48,7     3     60,6     5     (20) 
Other     (60,5)    (4)    (25,5)    (2)     
Total operations     1 374,5     100     1 209,9     100     14  
NSN     16,9         52,9         (68) 
Operating profit as reported in the
income statement  
  1 391,4         1 262,8         10  

Total assets     2011  
Rm  
  2010  
Rm  
CBI-electric     1 580,8     1 494,8  
Nashua     3 847,7     3 595,4  
Reutech     355,7     659,7  
Other1     322,1     2 202,9  
Total assets as reported per the balance sheet     6 106,3     7 952,8  
1 Other includes bank balances of R224,7 million (2010: R1 207,6 million) because it manages the group’s treasury function.  
         
Inventory and contracts in progress   2011  
Rm  
  2010  
Rm  
CBI-electric     455,3     424,1  
Nashua     275,6     305,5  
Reutech     154,6     133,7  
Other     –     –  
Total inventory and contracts in progress as reported per the balance sheet     885,5     863,3  
         
Accounts receivable     2011  
Rm  
  2010  
Rm  
CBI-electric     470,9     471,6  
Nashua     1 497,0     1 647,9  
Reutech     135,6     153,4  
Other     25,1     49,9  
Total accounts receivable as reported per the balance sheet     2 128,6     2 322,8  
         
Trade and other payables, derivative liabilities and provisions     2011  
Rm  
  2010  
Rm  
CBI-electric     548,0     422,4  
Nashua     1 161,3     1 228,8  
Reutech     136,1     151,5  
Other     109,2     134,0  
Trade and other payables, derivative liabilities and provisions as reported per the balance sheet     1 954,6     1 936,7  
         
Capital expenditure     2011  
Rm  
  2010  
Rm  
CBI-electric     30,3     23,1  
Nashua     20,4     44,3  
Reutech     35,7     31,6  
Other     13,0     49,9  
Capital expenditure as reported     99,4     148,9  
 
Depreciation and impairments of property, plant and equipment
and amortisation of intangible assets  
  2011  
Rm  
  2010  
Rm  
CBI-electric     53,4     52,4  
Nashua     47,4     49,9  
Reutech     18,3     15,3  
Other     2,7     0,7  
Depreciation and impairment of property, plant and equipment and amortisation of intangible assets as reported     121,8     118,3  
         
Number of employees     2011     2010  
CBI-electric     2 541     2 908  
Nashua     2 767     2 545  
Reutech     962     917  
Other     54     52  
Number of employees as reported     6 324     6 422