Shares in Reunert fell sharply on Wednesday, before regaining some ground, after a weaker-than-expected trading update unnerved investors.
The technology and engineering group’s interim results for the six months to end-March 2025 will show a decline of between 19% and 24% in headline earnings per share compared to the R2.89 reported in the same period in 2024. Earnings per share will decline by as much as 30%.
Reunert said its interim results have been impacted by several developments:
- A key contract in its defence cluster was deferred and resulted in the associated revenue and profit occurring in the second half of the 2025 financial year;
- Lower South African cable sales due to delays in the anticipated energy infrastructure investment programme; and
- The continued negative performance of the group’s battery storage business, Blue Nova Energy, which has resulted in the Reunert board electing to dispose of the business at a loss.
Excluding Blue Nova, which is now accounted for a discontinued operation held for sale, Reunert said its earnings from continuing operations will show EPS of between R2.35 and R2.50, a decrease of between 16% and 21%, and Heps will be down by between 17% and 22%.
“The group’s other businesses have generally delivered financial results broadly in line with those reported in the prior corresponding period,” it said.
Read: Reunert concludes IQbusiness, +OneX merger
Reunert shares were trading 5.1% lower as of 2.44pm on Wednesday. They had earlier fallen by as much as 9.7%, before they regained some of the losses by mid-afternoon. The group expects to publish its interim results on 28 May. – © 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.