Denel reports delayed results showing R1.96 billion loss

Denel has faced a huge financial loss
Denel has faced a huge financial loss
Image: REUTERS/Siphiwe Sibeko/File Photo

South African state-owned defence company Denel made a 1.96 billion rand loss in the year to the end of March 2020, it said on Monday, releasing delayed financial results.

The Johannesburg bourse had threatened to suspend the listing of Denel's bonds if the arms manufacturer did not publish its results by the end of January.

The latest loss compares to a revised loss of 1.47 billion rand in the 2018/19 financial year, underlining its continued fragility.

Interim CEO Talib Sadik attributed the larger loss in 2019/20 to "a delay in sales, an inefficient cost structure and poor programme execution".

Denel makes military equipment including missiles, ammunition and armoured vehicles for South Africa's armed forces and export customers.

The pandemic has caused a liquidity crisis for the firm, which has struggled to pay salaries.

It said on Monday that it had an order book of 15 billion rand.

A number of offers from potential strategic equity partners are being explored, it said.

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