Reunert saw group revenue increase by 15%, to R9.8 billion, for the year ended 30 September.
The electrical engineering, ICT and applied electronics group recorded 14% growth in operating profit from R1.3 billion to R1.5 billion and 19% growth in profit for the year, to R1.1 billion.
This improvement in profitability flowed through to headline earnings per share, which also grew by 19%, to 679cps.
"This was achieved, as highlighted in our previous prospects statements, through a strong second half performance across all segments, including the export businesses," Reunert said in its results statement.
The group declared a gross final cash dividend of 354cps, an 8.6% increase from a year ago.
Reunert says the execution of the group strategy led to three further acquisitions in the year. In October 2016, the group acquired 100% of the share capital of Nanoteq. With effect from 1 March 2017, the group owned 51% of the share capital of Terra Firma Solutions and a 74.9% stake in Ryonic Robotics.
Segmental growth
The electrical engineering segment's operating profit improved by 14%, from R610 million to R696 million, while revenue increased by 28% to R5.2 billion. The group says this was driven by strong performance in its cable businesses and the incorporation of Zamefa, its acquisition in Zambia. However, the stronger rand negatively impacted Low Voltage, its circuit breaker business, which experienced a challenging year.
"Telecom Cables continued to benefit from the local FTTX roll-out and enjoyed strong production volumes. The diverse market position of the South African power cable business allowed it to secure meaningful volumes, despite the weak general infrastructure demand."
The ICT segment delivered a strong performance underpinned by positive margin movement in both the office automation and voice business portfolios, despite segment revenue remaining flat at R3.3 billion. Operating profit increased by 16% from R549 million to R635 million.
The growth in operating profit was mainly due to the successful implementation of margin enhancement programmes, in both Nashua and ECN, and volume growth on higher-volume office automation equipment and voice minutes, the group said.
"Nashua progressed well in the execution of its strategy to change from an office automation hardware supplier to a total office services provider to its 28 000-strong customer base."
The group invested R12 million into the ECN network during the year. The voice business saw a 9% growth to 1.2 billion minutes carried on the network; however, the impact of lower business confidence reduced demand per customer. This was offset by substantial growth in the number of customers serviced.
The applied electronics segment's revenue increased by 14% to R1.7 billion but operating profit fell by 10% to R276 million, due to reduced export sales in the fuze business in the first six months of the year.
"Applied electronics only returned to full export production in the second half of the year, but still delivered a solid segmental performance. The positive contribution from our acquisitions assisted in the delivery of a strong overall operational result."
Reunert said its traditional businesses have continued to deliver real growth in tough local economic conditions.
"Applied electronics' export orders are at record high levels and should translate into a strong operating performance, with exchange rates providing some uncertainty in the financial results. Subject to no adverse changes in the local economic, social and political environment, we expect another year of real growth in 2018," the group concluded.
Reunert was listed on the JSE in 1948 and is included in the JSE's industrial goods and services (electronic and electrical equipment) sector. The group operates mainly in SA, with minor operations in Australia, Lesotho, Sweden, the US, Zambia and Zimbabwe.
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