Group CEO Alan Dickson says the company’s strong cash flow enables the payment of good dividends.
SIMON BROWN: I’m chatting with Alan Dickson, Group CEO of Reunert. Six months’ results ending March. Revenue up 7%, Heps up 8%, dividend up 8%. Alan, probably the only sort of bleak spot in the set of results was logistic challenges, mostly port. That hurt revenue from the Nashua brand. You simply couldn’t get the stock that you needed. Has that resolved itself?
SIMON BROWN: The rest of the business is doing well. Let’s touch on renewables. You mentioned some saturation in the battery-storage market, particularly in the consumer and smaller corporate . But otherwise it’s a space that’s doing very well and you are seeing good demand coming through. We’re increasingly seeing failures on the municipal grid, irrespective of the generation. So we are strategically seeing a trend whereby the CNI and business community are making a decision to have an alternative grid power to some extent, and therefore we are seeing lots of activity there. We have a large pipeline.
ALAN DICKSON: It definitely will. The largest demand we have at the moment is in our Fuse business. We did deploy capital last year – which was completed about five or six months ago – to increase their capacity quite significantly, and that’s already starting to play through.
SIMON BROWN: How much of the group? Obviously there’s stuff you’re importing, The Nashua brand is one of them and other bits, but how much of your revenue is export? You mentioned in the defence here of course there’s the circuit breakers. A lot of that goes into the US.
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