South Africa's largest arms manufacturer, Denel, has announced a net profit of R111 million for the year ending March 2011.
The state-owned enterprise generated R178 million in sales from its operations- marking the first time since 2001 that group has been in the black.
Denel, which produces defence, security and aero structure products, said the improved figures were a result of better financial strategies.
The good results are an indication that Denel is on a path to self-sufficiency, prosperity and sustainability,” stated Talip Sadik, Denel’s Group Executive Officer.
"Denel is actively looking at strengthening its presence in its existing, high growth markets and seeking new markets and new clients," Sadik said.
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The Group's Financial Director, Fikile Mhlontlo, commented on Denel’s high debt levels, and 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 are used primarily to meet the requirements of the South African National Defence Force (SANDF) and in recent years 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.