Problems at prominent IT and engineering company in South Africa

Reunert has cautioned shareholders it expects to report significantly lower earnings per share (EPS) and headline earnings per share (HEPS) in its interim financial results for the period ending 31 March 2025.

In a trading statement on Wednesday, 21 May 2025, the company gave reasons for the expected declines, including the sale of Blue Nova Energy at a loss.

The company expects to report earnings per share between 201 and 217 cents, a 25% to 30% decrease from the 289 cents in the prior corresponding period.

It expects headline earnings per share to be between 219 and 235 cents, a decrease of 19% to 24% over the 289 cents reported last year.

It said several factors impacted its results, including lower cable sales due to delays in South Africa’s energy infrastructure investment programme.

Reunert highlighted the disposal of battery storage business Blue Nova Energy as having a significant adverse impact on its interim results.

Reunert explained that Blue Nova Energy’s board of directors decided to sell the company due to its continued negative performance.

“Blue Nova will be classified as an asset held for sale and consequently a discontinued operation for the current reporting period,” Reunert said.

Blue Nova’s disposal are estimated to shave 11 cents and 32 cents off the HEPS and EPS, respectively.

Excluding Blue Nova from the equation, Reunert expects to report EPS of between 235 and 250 cents, a decrease of between 16% and 21% compared to the 296 cents reported in the same period last year.

At the same time, it expects to report HEPS of between 230 and 246 cents, representing a decrease of between 17% and 22% compared to the HEPS of 296 reported for the six months ended 31 March 2024.

“The group’s other businesses have generally delivered financial results broadly in line with those reported in the prior corresponding period,” said Reunert.

The company expects to release its interim results for the six months ended 31 March 2025 on or around Wednesday, 28 May 2025.

The table below shows Reunert’s earnings guidance for the group, including and excluding discontinued operations.