Arms manufacturer Denel on Tuesday reported a R377,5-million net loss for the year ended March 31 2004, from gross revenues of R4,442-billion.
The previous year the group’s net loss was R72,6-million.
Net cash outflow before financing amounted to R200,8-million, a slight improvement on the R229-million outflows for the previous year. This was achieved despite investments of R143,6-million in fixed assets and R240-million in research and development.
Minister of Public Enterprises Alec Erwin said on Tuesday that Denel will remain a state-owned enterprise.
Speaking at the release of Denel’s year-end results, Erwin said, however, that a sophisticated company such as Denel will need partnerships. The minister added that the government is working with management and the board to look into new partnerships.
“We will need to look at Denel’s balance sheet and develop cost-cutting measures. Government is considering talks with the Defence Department.”
The minister added that the Cabinet will make an announcement in two months’ time to bring new blood into the board of Denel. — I-Net Bridge