Segmental analysis

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BUSINESS SEGMENTS

The business segments identified are Electrical Engineering, operating as CBI-electric; Information and Communication Technologies (ICT) operating as Nashua; Defence and Allied Electronics 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.

Reutech specialises in tactical VHF/UHF/HF 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.

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.

The accounting policies of the reportable segments are the same as the group’s accounting policies described in these financial statements.
 
  2013
Rm
% 2012
Rm
% %
change

REVENUE

 
 
CBI-electric
3 505,7
31
3 634,3 31 (4)
Nashua
6 812,1
60
7 218,3 62 (6)
Reutech
1 019,9
9
805,7 7 27
Other
12,9
3,9 231
Revenue as reported per the income statement
11 350,6
100
11 662,2 100 (3)
Intersegment revenue is immaterial and has not been disclosed. The geographical analysis of export revenue is detailed in Note 1. The analysis of revenue concerning products and services is not provided as the cost to collate the information would be excessive.  
 
 
 
     

OPERATING PROFIT BEFORE INTEREST AND DIVIDENDS

 
 
CBI-electric
505,5
38
592,9 39 (15)
Nashua
636,1
48
838,6 55 (24)
Reutech
207,3
16
150,5 10 38
Other
(19,4)
(2)
(57,4) (4) 66
Operating profit as reported in the income statement
1 329,5
100
1 524,6 100 (13)
 
 
Rm 2013 2012

TOTAL ASSETS

 
CBI-electric
2 003,0
1 515,2
Nashua
4 468,9
4 101,6
Reutech
727,2
598,2
Other*
243,9
373,0
Total assets as reported per the balance sheet
7 443,0
6 588,0
* Other includes bank balances of R nil (2012: R206,4 million) because it manages the group’s treasury function.
 

INVENTORY AND CONTRACTS IN PROGRESS

 
CBI-electric
568,7
461,2
Nashua
428,5
296,1
Reutech
166,1
212,0
Other
Total inventory and contracts in progress as reported per the balance sheet
1 163,3
969,3

ACCOUNTS RECEIVABLE AND RENTAL AND FINANCE LEASE RECEIVABLES

 
CBI-electric
663,9
510,3
Nashua
1 518,7
1 602,5
Reutech
281,0
193,2
Other
26,2
19,3
Total accounts receivable and rental and finance lease receivables as reported per the balance sheet
2 489,8
2 325,3

TRADE AND OTHER PAYABLES, DERIVATIVE LIABILITIES AND PROVISIONS

 
CBI-electric
530,1
545,3
Nashua
1 048,9
972,7
Reutech
275,2
160,3
Other
86,8
153,7
Trade and other payables, derivative liabilities and provisions as reported per the balance sheet
1 941,0
1 832,0

CAPITAL EXPENDITURE

 
CBI-electric
109,2
20,5
Nashua
41,7
52,8
Reutech
23,2
30,9
Other
2,3
2,3
Capital expenditure as reported
176,4
106,5

DEPRECIATION AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND AMORTISATION OF INTANGIBLE ASSETS

 
CBI-electric
42,2
46,2
Nashua
64,9
65,4
Reutech
18,7
21,4
Other
6,2
5,0
Depreciation and impairment of property, plant and equipment and amortisation of intangible assets as reported
132,0
138,0
  2013 2012

NUMBER OF EMPLOYEES

 
CBI-electric
2 604
2 491
Nashua
3 032
2 812
Reutech
950
1 305
Other
59
46
Number of employees as reported
6 645
6 654