Pretoria - South Africa's largest arms manufacturer, Denel, has achieved a net profit of R111 million for the year ending March 2011 and generated cash of R178 million from its operations.
This, according to Denel's Group Executive Officer Talip Sadik, was the result of improved financial strategies.
Announcing the state-owned enterprise results, Sadik said this is the first time since 2001 Denel has achieved good results.
We are pleased with our results, in particular that the business generated cash from operations of R178 million The good results are an indication that Denel is on a path to self-sufficiency, prosperity and sustainability.
"Denel is actively looking at strengthening its presence in its existing, high growth markets and seeking new markets and new clients," Sadik said.
On Denel's high debt levels, the Group's Financial Director, Fikile Mhlontlo, said the funding balance had remained at R1.85 billion, resulting in an annual interest charge of R118 million.
We are engaging the shareholder with a view to restructuring the funding balance in order to reduce the interest burden.
"As a global trading company with nine entities and three associate companies, we are a key player in the development of South Africa's advanced manufacturing, industrial and technology base," he said.
Denel's products, developed through the application of innovative Denel technology, are used primarily to meet the requirements of the South African National Defence Force (SANDF).
Over the past years, Denel's products have been diversified into civilian applications such as civil security, crime prevention, protection of assets, improving workplace safety and productivity and rendering support to the mining and electronic sectors.
During the Soccer World Cup, the South African Police Service and South African Air Force used the Carl Zeiss Optronics observation systems for surveillance purposes.
According to the SANDF, the helicopters will contribute significantly to the ability of the SAAF to fulfil its mandate in peacekeeping operations and to support the future deployment of South African soldiers.
Public Enterprises Minister Malusi Gigaba commended Denel on the good results. "We are pleased to note that there are positive signs of improvement in the majority of Denel business operations," he said.