/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

Denel continues to maintain a healthy financial position and is poised for a period of sustained growth in the defence and high-technology areas.

The state-owned technology company presented its annual report and financial results to the Portfolio Committee on Public Enterprises in Parliament today and emphasised the fact that it has posted profits for five consecutive years.

“The turnaround of Denel has been very successful,” says the Acting Group CEO, Zwelakhe Ntshepe. “We were able to demonstrate to Parliament how we have moved from a loss-making situation a mere six years ago to a position where we reported profits of almost R400-million in the past financial year.

“Denel was able to deliver these excellent results through restructuring and cost-cutting measures and by aggressively driving business growth, especially in export markets which now account for almost 60% of revenue,” says Ntshepe.

The presentation and Annual Report tabled in Parliament show how Denel has met –and exceeded – almost the targets and key performance indicators set by the stakeholder, the South African government. Revenue has grown by 41% to R8.2-billion and earnings before text and interest improved by 59%.

Ntshepe says Denel informed Parliament that the company’s long-term growth strategy is aligned with its intentions to increase sales and widen its product portfolios. Within South Africa the emphasis is on strong alignments with Government and Armscor and externally Denel aims for a “focused and sustained penetration of selected international markets.”

Denel’s sustained financial recovery is dependent on its ability to increase market share, manage costs and achieving its revenue target – but also on the continued support and guarantees that it receives from the government.

“We therefore welcomed the opportunity to report back to Parliament on our financial performance and the quality of corporate governance that is in place at Denel,” says Ntshepe. “We trust that our engagement with the Portfolio Committee strengthened its confidence in the ability of the Board and executive management to lead Denel to even greater heights.

Ntshepe says the presentation to the Portfolio Committee also contained details about the progress made at Denel to appoint women and younger leaders into executive positions and to increase the share of emerging enterprises in the company’s supply chains and enterprise development programmes.

Denel spends more than R550-million on research and development and intellectual property and invests more than R65-million annually in training and skills development through bursaries, learnerships and education enrichment programmes aimed at high school learners.

“The future of Denel looks positive,” says Ntshepe. “Denel has grown into the second largest defence company in the southern hemisphere and created a global awareness about the qualities and capabilities that exist within the South African defence and technology sectors.

Issued by Denel