19 Aug 09. Group CEO of Denel, Talib Sadik, released the Group’s annual results for 2009 today. While the organisation posted a normalised loss of R242m (2008: R307m), when viewed in context, its restructuring strategy clearly indicates viability, progress and improvement for the benefit of the South African defence and aerospace industry, the South African National Defence Force (SANDF) and the local economy. Its turnaround achievements further strengthen Denel’s positioning as a leading technology company committed to developing South Africa’s industrial and advanced manufacturing skills base through the creation of proprietary intellectual property and technical skills and, importantly, enhancing the country’s defence capabilities, contributing towards the SANDF being equipped with world-class equipment and services. Denel achieved key milestones during 2009 despite global financial turmoil.
Strategic equity partnerships have enabled Denel to access global supply chains and become an internationally recognised, competitive defence supplier. At home, Denel continues to invest in skills development, and remains a key technology enabler as well as skills incubator in South Africa . Key achievements of the past financial year include:
Completion of the industrial recapitalisation programme at Denel’s Aerostructures business, in partnership with SAAB, totalling R400m; and the establishment of advanced large-structure composites manufacturing processes and certified support processes. The company gained accreditation as a supplier of key dynamic assemblies for helicopters and manufacturer of sub-assemblies;
Achievement of developmental milestones associated with Airbus’s A400m programme, the Badger infantry combat vehicle, and the fifth generation air-to-air A-Darter missile programme in partnership with the Brazilian Government. In total, the group spent R1.2bn in research and development, representing in excess of 20% of total revenue;
Turnaround of nine of its 11 entities, with total contracted orders amounting to R17.8bn including R3.4bn from the associates. Revenue per employee increased from R353 000 in 2006 to R774 000 in 2009;
Direct employment of approximately 3 500 technically skilled employees including in excess of 400 specialist engineers and scientists, sustaining over 30 000 technical jobs in South Africa . Denel also provided work packages to a number of specialised locally based SMME engineering companies, as well as technical exposure / training opportunities to over 5 500 South African school learners and university students;
Continued improvement in Denel’s programme management, governance, national and global legislative compliance, and risk management processes; and Visible improvement in Denel’s transformation goals with the organisation’s culture index now at 50%. In striving towards being recognised as a respected South African company, all Denel entities and associate companies are in the process of obtaining verified BBBEE ratings, with the group aiming to achieve a collective Level Five contributor rating. By year-end, Denel’s Aviation business achieved a verified rating of four. The group’s overall net loss of R544m (2008: R347m) is after accounting for certain once-off restructuring related items and an impairment charge of R172m in its Aerostructures business. The net loss of R347m in 2008 was positively impacted by the sale and leaseback of land to ACSA where a profit of R135m was generated. Prior to accounting for the losses in its Aerostructures and Missiles businesses, and the interest expense, Denel posted a profit of R33m which compares very favourably with the previous year’s comparable loss of R201m. This clearly demonstrates the viability of most entities and progress made in the execution of Denel’s restructuring strategy. (Source: Google)
17 Aug 09. GHL Acquisition Corp. (NYX: GHQ) and Iridium Holdings LLC today issued the following statement in regard to th