A N N U A L   R E P O R T   -   2 0 0 2 
Financial highlights Statutory information
Letter to the shareholders Accounting policies
Board of directors Income statements
Group operations Balance sheets
Developing people Cash flow statements
Corporate governance Notes to the cash flow statements
Value added statement Statements of changes in equity
Segmental analysis Principal subsidiaries
Five-year financial review Share ownership analysis
Summary of statistics Shareholders' diary
Definitions Administration
Directors' responsibility Notice of annual general meeting
Report of the independent auditors Currency conversion table
Secretaries' certification Board, Director and Committes
   

G R O U P   O P E R A T I O N S
  Reunert Limited is listed on the JSE Securities Exchange South Africa (JSE) under General Industrials in the electronic and electrical equipment sector. It manages a number of businesses focused on electronics and electrical engineering. Established in 1888 by pioneers Theodore Reunert and Otto Lenz, the group has played a major role in the South African economy for more than a century and its products are leaders in the various markets its serves.

Originally listed in the engineering sector of the JSE in 1948, the company was acquired by Barlow Rand in 1980 and listed on the electronics sector three years later. Reunert was unbundled from Barlow Rand in 1993. Today, Reunert is represented through its different operations in office automation solutions, consumer and commercial products and services, telecommunications, defence electronics, low-voltage electrical engineering and cables.

Reunert's turnover in 2002 exceeded R5 billion which was achieved by serving local and international markets. Reunert has approximately 4 300 employees, most of whom are qualified and experienced engineers, technicians, research and development professionals and field support staff.

   
  NASHUA
  The advancement of digital technology has enabled Nashua Limited to provide document storage, transmission and printing solutions in a networked environment. Products are value-added and include such respected international brands as Ricoh. Nashua is a leading supplier of office automation products, including digital and analogue photocopiers, facsimile machines, laser printers and consumables such as paper and toner. After acquiring Royce Imaging Nashua entered the refilled ink cartridge market.
Nashua has recently introduced new-generation software solutions designed to increase the productivity of managing document flow.
Nashua has a well-established network of 56 franchises in South Africa, Namibia, Swaziland, Lesotho, Botswana, Zimbabwe and Zambia. Major customers account for 96 of the Financial Mail's top 100 companies. Nashua employs 351 people at its Midrand head office in Gauteng.
Nashua Finance
RC&C Finance Company, trading as Nashua Finance, provides asset-based financial services to Nashua, Panasonic and Siemens Telecommunications customers. Based at Midrand in Gauteng, the company employs 40 people, and is managed by Mike Purnell (39), CA(SA).
Managing director: Nashua Limited
Chris Scoble (41)
BBusSci
With Nashua since 1985
www.nashua.co.za
   
  IQ WORKS
  IQ Works provides digital solutions arising from the convergence of technology. Established in July 2000 the company provides information technology (IT) solutions in specialist areas, including mobile services, technical services and enterprise content management services.
Reunert is to acquire the outstanding 50% stake held by the IQ Business Group.
IQ Works adds technology competence to Nashua and Nashua Mobile and offers IT services to other Reunert subsidiaries. Other key customers include some of the largest financial institutions in South Africa. The company is managed by Gustav Vermaas (36)
 BCom, ACMA (UK).
   
  REUNERT CONSUMER AND COMMERCIAL HOLDINGS
 



Reunert Consumer and Commercial Holdings is the exclusive importer and distributor of well-known brands such as National, Panasonic and Technics in southern Africa. Recent additions to the product offering are Futronic and Nintendo. Futronic is targeting the value-for-money, entry-level consumer electronics market, whereas Nintendo is the exclusive distributor of Nintendo Games hardware and software.
The consumer is thus offered a wide range of products such as television sets, hi-fi equipment, digital cameras, interactive entertainment products, home appliances and gaming products from the foremost international manufacturers.
A comprehensive range of business systems products such as office automation equipment, telecommunications products and systems, broadcasting and security systems and air-conditioning units are also available for a variety of commercial applications.
Most of the products used are leading-edge technology products from Matsushita Electric Industrial Corporation (MEI), supplemented, where required, by third-party products or technologies.
All products are distributed through major chain stores, discounters, franchises, independent buying groups and specialised dealers or directly through Panasonic Business Systems.
The head office operations are based at Midrand in Gauteng. The company employs 800 people.

Group managing director: Reunert Consumer and Commercial Holdings Limited
Martin Maddox (42)
BA Econ (Hons)
With the Reunert group since 1983
Websites:
www.panasonic.co.za
www.technics.co.za
www.sdlink.co.za
www.futronic.co.za
www.nintendo.co.za
   
  NASHUA MOBILE
  Nashua Mobile became a wholly owned subsidiary of Reunert during the financial year, following Reunert's purchase of the minority interests of Nedcor Bank Limited and Metropolitan Life Limited.
Nashua Mobile is an independent cellular service provider, marketing and selling the cellular offerings of the South African network operators Vodacom, MTN and Cell C. Nashua Mobile's main focus is on providing cellular services to business and high airtime users. In addition to selling the cellular services of the three network operators, Nashua Mobile continues to develop and market products and services designed both to improve the communications abilities of customers and to reduce their communications expenditure. With the advent of GPRS (general packet radio switching) and MMS (multimedia services) in the new financial year further opportunities exist at Nashua Mobile to enhance its service offering to customers.
Nashua Mobile's customers are serviced through an extensive network of regional offices, franchises and dealers throughout South Africa. Nashua Mobile has grown its base to just over 300 000 subscribers, of which 265 000 are contract subscribers. The company employs 509 people and its head office is based at Midrand in Gauteng.
Managing director: Nashua Mobile (Proprietary) Limited
Simon Herbert (44)
BCom, MBL
With the Reunert group since 2000
www.nashuamobile.co.za
   
  SACO SYSTEMS
  SACO Systems designs and supplies tag, track and trace solutions to a wide range of industries that need to track assets inside their companies or over a large geographical area. In addition, SACO combines access control, closed-circuit television (CCTV) technology and time-and-attendance systems in a single resource management solution. SACO is a dominant player in the southern African market and has made significant inroads into the British market for asset tracking and distribution management products.
During the year, SACO launched an advertising campaign aimed specifically at growing local business. This proved to be an effective move as local business grew by 74% across a broad range of industries.
Based at Midrand in Gauteng, the company employs 59 people.
www.saco.co.za
Managing director: SACO Systems (Proprietary) Limited
Bill Reeler (48)
BSc Eng (Hons) Elec
With the Reunert group since 1981
   
  SIEMENS TELECOMMUNICATIONS
  Reunert increased its shareholding in Siemens Telecommunications (Siemens) from 27,5% to 40% after acquiring the shares of Marconi plc early in the 2002 financial year. Siemens SA holds the remaining 60%.
Siemens is involved in information and communications technology (ICT). The company is a leading supplier of fixed and mobile communication systems and infrastructure for telecommunications operators. It is a major supplier to Telkom and the second fixed-line network operator participant, Easitel. It is the principal supplier to Vodacom and Cell C. Siemens has the integration skills and the ability to design, install and commission both GSM and fixed networks to world- class standards.
In addition Siemens is major supplier to several fixed-line and mobile operators in the rest of sub-Saharan Africa, as well as the leading provider of corporate and enterprise networks.
www.siemens.co.za
Chief executive officer: Siemens
Telecommunications (Proprietary) Limited
Pete da Silva (43)
Dip Computer Science, Dip Light Current
With Siemens since 1977
   
  ACUO TECHNOLOGIES
  Based at Stellenbosch in the Western Cape, with nine employees at present, Acuo Technologies was established in February 2002. Acuo is a specialist software engineering company providing turnkey software system solutions and software system integration services for telecommunications and other markets. Currently the company provides development services to Nashua Mobile and Reutech Radar Systems, involving real-time software and transaction management systems.
The company's areas of expertise include Microsoft.NET, Biztalk, Java, J2EE and Linux.
www.acuo.co.za
General manager: Acuo Technologies (Proprietary) Limited
Carl Kies (39)
MEng
Employed by the Reunert group from 1988 to 1993 and from 2002
   
  REUTECH DEFENCE INDUSTRIES
  Reutech Defence Industries, located at New Germany in KwaZulu-Natal, develops and manufactures state-of-the-art, very-high-frequency (VHF) and ultra-high-frequency (UHF) tactical airborne and ground-based radio communication systems and electronic air weapons systems, specialising in high-tech fusing. Exports account for about 70% of revenue. The company employs 152 people.
www.rdi.co.za
Managing director: Reutech Defence Industries (Proprietary) Limited
Martin de Beer (37)
BSc Eng (Elect)
With the Reunert group since 1989
www.fuchs.co.za
   
  FUCHS ELECTRONICS
  Fuchs Electronics develops and manufactures a wide range of electronic fuzing systems. It is a world leader in modern electronic fuzing for all tube-launched ammunition rounds. Products include naval, artillery, mortar and rocket applications.
More than 90% of the company's revenue is generated through exports to Asia, Europe, South America and the Middle East. Fuchs Electronics owns the intellectual property of all the products it manufactures and markets. Based at Alberton in Gauteng, the company employs 311 people.
Managing director: Fuchs Electronics (Proprietary) Limited
Andreas Theodorou (53)
Dip Elec, Dip Datametrics
With the Reunert group since 1975
   
  REUTECH RADAR SYSTEMS
  Reunert owns 57% of Reutech Radar Systems (RRS) while the European Aeronautic Defence and Space Company (EADS) has 33% and the remaining 10% is held by Kgorong Investment Holdings.
Based at Stellenbosch in the Western Cape, RRS specialises in ground-based and ship-borne radar systems and is active in the air defence, air space control and air traffic control markets. Through a technology partnership with EADS, RRS' products are incorporated into world-class systems. The company employs 105 people.
www.rrs.co.za
Chief executive officer: Reutech Radar Systems (Proprietary) Limited
Piet Smit (40)
MEng, MBA
With the Reunert group since 1987
   
  REUNERT DEFENCE LOGISTICS
  Reunert Defence Logistics (RDL) is a system engineering and support company. The company's services cover the entire spectrum of logistic support and management; the development and manufacture of gun and fire-control systems for armoured vehicles and naval guns; and the supply and support of Alcatel carrier internetworking equipment.
Reunert Limited holds 70% and Kgorong Investment Holdings (Proprietary) Limited 30%. RDL is based at Midrand and has support facilities throughout South Africa. The company employs 214 people.
www.rdlog.co.za
Managing director: Reunert Defence Logistics (Proprietary) Limited
Selwyn Newnes (45)
BCompt
With the Reunert group since 1984
   
  CIRCUIT BREAKER INDUSTRIES
  Circuit Breaker Industries (CBI) is the market leader in the manufacture and supply of low-voltage switchgear for electrical installation protection and earth leakage protection and a world leader in the field of hydraulic-magnetic circuit breaker and electronic earth leakage technology. CBI offers a wide range of metering solutions, including prepayment meters. The company entered the field of surge and lightning protection after acquiring L&T Surge in 2001. CBI has agency distribution rights for Mitsubishi motor control gear and factory automation equipment in sub-Saharan Africa.
Export sales account for 22% of the manufactured products. The target is to increase international sales to 25% of production in the 2003 financial year. CBI has registered its trademarks in several countries where business prospects are pursued. More than 90% of sales of manufactured products originate from technology developed and owned by CBI. Brand names include
Hy-Mag, Ecolec, Samite and Fuchs.
The head office and component manufacturing operations are based at Johannesburg. The company has three assembly plants at QwaQwa in the Free State and service branches in Cape Town, Durban, Bloemfontein and Port Elizabeth. CBI sales offices in Europe and the United States complement these operations. CBI employs 1 301 people
www.cbi.co.za or www.cbibreakers.com
 

Managing director: Circuit Breaker Industries Limited
Helmuth Fischer (55)
Dip Ing, Dip Wirtsch Ing
With CBI since 1984

   
  ATC
  Reunert recently announced that it is to acquire Marconi Communications' 50,9% shareholding in ATC. The transaction is still subject to certain suspensive conditions. The shareholding structure will change further with the introduction of a black economic empowerment group as a significant shareholder. Pirelli Cables and Systems holds 10,5%.
ATC was founded in 1955 by a group of British cable manufacturers as African Telephone Cables. Its factory and head office, based at Brits in the North West, north-west of Johannesburg, was established in 1972.
ATC specialises in the manufacture of copper and optical fibre telecommunication cable for public network operators. The company also manufactures an impressive range of measurement, instrumentation, control, data and security cables for use in commerce and industry.
www.atc.co.za
Managing director designate: ATC
(Proprietary) Limited
Koos Vorster (53)
BCom, CIS, MBL
First employed by ATC in 1971
www.africancables.co.za
   
  AFRICAN CABLES
  African Cables is one of the forerunners in the South African cable industry and is engaged in the design, development, manufacture and installation of insulated power cables. Pirelli Cables and Systems, holding a 50% share, is the company's international technology partner. The company is based at Vereeniging in Gauteng and employs 625 people.
African Cables holds a 73% share in Cafca, a Zimbabwean cable manufacturer.
Managing director: African Cables (Proprietary) Limited
Ernst Schutte (53)
BSc Eng Elec
With the Reunert group since 1999
   

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