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Highlights Accounting policies
Letter to shareholders Income statements
Board and governance structure Balance sheets
Group overview Cash flow statements
Building and developing people Notes to the cash flow statements
Corporate governance Statement of changes in equity
Value added statement Notes to the annual financial statements
Segmental analysis Principal subsidiaries
Five-year financial review Share ownership analysis
Summary of statistics Shareholders' diary
Definitions Corporate administration and information
Directors' responsibility Notice of annual general meeting
Report of the independent auditors Currency conversion table
Secretaries' certification Proxy form
Statutory information

Despite the highly technological emphasis of our various businesses, Reunert retains a notably strong focus on building and developing human capital, whether in partnership with our employees in the workplace, or in partnership with the communities in which we operate.

Reunert College

Established in 1993 as an academic advancement programme for matriculants from disadvantaged communities, Reunert College has become the jewel of the group’s social development activities. The college’s primary focus is to assist learners from historically disadvantaged communities to improve their matriculation grades for the academic subjects of mathematics, science and English. The college also provides an academic bridging year to assist those students who want to enroll for tertiary education in science and technology fields.

To date, more than 500 learners have participated directly in the college’s matriculation-orientated academic advancement courses at its Boksburg and Alrode campuses. In addition, learners from surrounding communities are also accommodated in the study-group system through which high school learners receive their course notes and study guides, and meet weekly on Saturday mornings for formal instruction and guidance. This latter initiative involves the college’s own teachers, acting as voluntary facilitators, and community teachers. Fifty-seven learners benefited from this Reunert commitment during 2003.

The participating learners’ average matriculation pass rate achieved to date exceeds 98%, which is substantially above the national average achieved for math's and science. In addition, Reunert College students regularly achieve distinctions in higher grade mathematics and science. As a result, several students have been able to enter the engineering field and a few others are currently studying at a university or technikon.

Other subjects offered by the college include accounting, business economics, computer skills, English and technical drawing, as well as communication and life skills. In addition, drama, art, debating, choir singing and soccer are among the extramural activities provided for college learners.

The Reunert College is accredited for experiential training by the technikons of the Witwatersrand, the Vaal Triangle and Pretoria. The college is also an examination centre registered with the Gauteng Department of Education (GDE) and its learnership in electronics is accredited with the City and Guilds in the United Kingdom. Most of the students qualify in the field of electrical engineering, followed by mechanical and industrial engineering.


The Reunert Bursary Fund is an essential part of the college and more than 360 bursaries have been awarded since its inception. The group has subsequently employed many of our bursary students, either as part of their practical or experiential training, or as permanent employees.

African Cables has granted 261 bursaries in the past eight years in a wide range of disciplines. ATC’s R300 000 annual bursary scheme currently supports about 50 beneficiaries.


During 2003 Reunert introduced a trendsetting employee mentorship programme, a developmental process aimed at guiding less experienced employees by other, more experienced employees, or mentors. The programme was implemented predominantly to retain and develop high-performing staff, especially people from previously disadvantaged communities. The programme assists with the effective integration of new employees, as well as those joining the group as a result of acquisitions and mergers.

The resulting increase and improvement in communication across different employee levels and disciplines throughout the group has helped to motivate employees and to entrench a much stronger corporate knowledge and culture. Other benefits of mentorship include the development of more effective career guidance and succession planning systems, as well as the provision of greater support for the essential competencies that are being built through our ongoing skills development programme.

Our highly successful employee mentorship programme was started in early-2003. It has become so effective that there is currently a waiting list in the group companies for employees at all levels to participate in this programme.

The mentorship programme is unique because most corporate mentorship programmes only aim at training mentors who eventually will interact with their protégés, but, in the case of Reunert, both the protégé and the mentor undergo an initial programme, which is one of the key reasons for our success thus far.

While mentorship programmes have been in place in many companies since the early-1990s (even before that in the United States of America), a common mistake has been to focus too much on trying to foster better understanding between different cultural groups. Our experience has shown that an understanding between people is important, but the most important goal is the need to create a common and sustainable companywide business culture.

This common culture should be built around productivity and value-adding with the understanding that employees will only stay and prosper in a particular organisation if they sincerely believe they are making a positive contribution. An employee who is able to add value in his or her job is respected by his or her colleagues and, accordingly, will seldom be tempted to leave his or her employer.

At Reunert, this innovative process starts with cultural interaction at the college where students, through life-skills training, develop an excellent perspective of such issues as the importance of developing a solid work ethic and shared values about contributing towards the sustainable wellbeing and growth of a company, as well as workplace satisfaction, being part of a successful team and what making a contribution means for developing and maintaining one’s self-esteem. We are currently evaluating the feasibility of implementing an adapted version of the mentorship programme into the college.

As a result of such positive interventions, it is our sincere belief that we shall be able to recruit, employ and develop employees from different backgrounds who will be happy to work for any Reunert company. With a solid grounding in the group’s core values, as well as the self-esteem derived from being empowered to add value, Reunert believes these employees will not be lured away by the prospects of short-term gains at the expense of longer-term personal growth and development.

Other training and development initiatives

In addition to the excellent work being undertaken by the college, several Reunert companies are actively involved in driving beneficial education and training programmes in their local communities.

In co-operation with Riverside High School near Vereeniging, which was chosen for its excellent academic record, as well as its teaching staff’s qualifications in remedial education, African Cables has been sponsoring a Saturday school in order to improve the competence in English, mathematics and science of children from designated groups in grades 8 to 12. With an improved grade in these three subjects, more children from designated groups will have access to a university or technikon education.

As a result of the supplementary and remedial education these children received, they showed a marked improvement in their results. Many of these children, after completing a year at the Saturday school, were accommodated in the traditional Model C schools, where they were able to adapt to the new academic environment and progress towards undertaking a university or technikon education.

Since 1994 African Cables has assisted 447 children from designated groups, an investment that will generate significant returns in the future.

ATC has embarked on a joint process with other companies in the cable industry to develop a dedicated curriculum for a cable-maker learnership. The exercise is undertaken under the auspices of Manufacturing and Engineering Sectoral Education and Training Authority (MERSETA). Technikon South Africa (Technisa) will develop the required course content. Learners embarking on this learnership will have to have a basic education equivalent to level two as defined by the National Qualifications Framework (NQF).

The group therefore plans to reintroduce compulsory adult basic education and training (ABET) for employees who have not yet achieved NQF level-two competency. Reunert’s ABET programme will be conducted through a computer-based electronic system.

Reunert’s commitment to training and development and the expertise available in the group are widely recognised in South Africa. Reunert’s training managers are represented on committees and subcommittees of both SETAs (sectoral education and training authorities) applicable to the group’s operations. The Reunert training and development manager serves as one of three industry appointed representatives of the National Skills Authority.


While Reunert’s principal social investment efforts are focused on supporting and advancing education and training programmes in under resourced communities, group companies are also encouraged, where feasible, to develop other community development and support initiatives. Nashua, for example, has selected the Aids challenge as the focus of its social investment programme because of the critical status of this epidemic in South Africa.

Nashua’s social investment efforts therefore continue to be concentrated on the supporting programmes and organisation that exist to counter and manage the HIV/Aids pandemic, a scourge that affects, and will continue to affect, every South African corporate entity. Recognising that it could play a more positive role, Nashua launched the Nashua versus Aids campaign in March 2001. Nkosi’s Haven was selected as the beneficiary of this initiative and Nashua continues to support this organisation.

The initial Nashua vs Aids campaign raised more than R500 000, including the purchase of an adjacent building for the much-needed expansion of the Aids sanctuary. These funds were released in a controlled manner to the haven in accordance with their renovations and financial requirements. The new Nashua Nkosi’s Haven was opened ceremonially in November 2002.

Nashua continues to support Nkosi’s Haven. Its most recent show of support was its donation to the haven of the financial proceeds from the recent fundraising event, the Nashua Corporate Soccer Festival. Nashua retains an active, hands-on approach to sponsorships and donations, and chooses to manage the resources itself. Rather than hand over money, Nashua uses funds to purchase those essential items most needed by the Aids haven.

As a continuation of its focus on the HIV/Aids pandemic, Nashua also launched its own internal Aids awareness campaign. Initially designed to educate its own employees, this effort has since been extended into the community. The most recent efforts have included a focus on senior primary schoolchildren. The slogan, Spread the word and not the disease, epitomises the fundamental message behind these efforts.

Nashua’s Aids awareness programme was extended to the Alexandra and Ivory Park regions of central Gauteng in July 2002. Similar efforts were introduced during 2003 and were focused on individual schools in other regions of central Gauteng. Where the Alex/Ivory Park effort combined schools in a mass gathering, current efforts saw the Nashua internal Aids committee targeting six schools in the greater Thembisa area over two days. Joined by the Hecate drama group performing their Secrets and Lies dramatic play, they educated and enlightened various grade-seven classes.

Reunert is fortunate not to have experienced any significant direct effect on its businesses from the Aids pandemic. The group enforces a non-discriminatory Aids policy and most group companies have established Aids education programmes to provide staff with up-to-date information on HIV and Aids prevention and suffering.

Other social involvement

Group companies are encouraged to become involved in their local communities. Companies are involved in fundraising, crime prevention and several other community support initiatives. African Cables is involved with the Anchor/Tshiya Savings and Credit Co-operative in the Vaal Triangle area. This community organisation has been developed with the threefold objective of helping the community to achieve economic empowerment, freeing workers from the burdens of debts, loan sharks and pyramid schemes, and of creating economic self-sufficiency.

Nashua has for many years supported the efforts of the Reach for a Dream Foundation. From office equipment to golf-day sponsorships to flights for families of terminally ill children, often in conjunction with other sponsors, Nashua has always extended a generous hand.

Black economic empowerment

Reunert has adopted a multi-level approach to developing and progressing programmes for the advancement of black economic empowerment (BEE). At the level of the listed company, Reunert continues to actively seek appropriate shareholder groups who can add value to the group’s business strategy and operations.

At the level of our operating companies, several companies have already secured the participation of strategic BEE shareholders. Kgorong Investment Holdings – currently holds 10% of Reutech Radar Systems (RRS), 25% in ATC and 30% of Reunert Defence Logistics (RDL). In addition, Kgorong holds two seats on each of the RDL, ATC and RRS boards of directors.

Wherever possible, group companies outsource to, or partner, with BEE companies. African Cables helped to establish Bogabane Engineering, which currently operates from the African Cables business premises. Other small, micro and medium enterprises (SMMEs) used by African Cables include Atlehang Ma Afrika, Doocks Construction and XYLO. These companies employ 64 people and African Cables’ business orders placed with these SMMEs during the 2003 financial year amounted to almost R4 million.

Other group companies, where possible, are also using local SMMEs owned and operated by BEE individuals and groups.

Employment equity

At a company level, all operating companies are committed to employment equity in terms of the Employment Equity Act of 1998 and continue to progress well in training and promoting staff within a framework of equity as defined by the Act. Within each group operating company, staff have been identified for, and provided with, further training at various levels. Promotion from within, and on merit, is the group’s primary means of job advancement, and is free from any form of discrimination.

Preferential recruitment is given to suitably qualified people from designated groups, which encompass Africans, Indians, Coloureds, women and people with disabilities.

The group, through selection, recruitment, training and internal promotions, is creating a pool of employees from designated groups with the requisite competence to perform at all levels within the organisation.

Human resources

The Reunert group integrates much of its philosophy and many of its practices in the fields of corporate social investment and human resources development with the conviction that we can unlock greater synergy when we focus on the greater need to develop and support people, thereby bringing them yet closer to fulfilling their dreams and their potential. Integral to our human resources development commitments, we maintain a successful training and development committee that serves the existing and projected future human capital interests of the entire group.

The primary aim of our group training and development committee is to first meet the statutory requirements of the Skills Development Act of 1998. We must, for example, design, implement and maintain dedicated training and development programmes for each employee. All group companies have established their mandatory training and development programmes for each of their employees.

In addition, our employees, including senior managers, are also assessed frequently with the overriding objective of enabling them to make a maximum contribution to the group’s development and to the development of their own successful careers. In some instances, we send employees to specialised training institutions both in South Africa and overseas to advance their education and training. Extensive programmes are also maintained internally to train and develop employees.

Sound structures and communication are maintained with the 24 trade unions recognised by the group. Consequently, Reunert has continued to enjoy a low incidence of industrial action during the last few years.

In addition, members of our group pension fund have individual choice in selecting their investment portfolios. Each quarter, the investment performance of each of the group’s benefit funds is communicated to staff in order to allow them to switch investment portfolios if required. This commitment enables all employees to maintain responsibility for their own retirement planning.

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© Copyright - Reunert - 2003