Denel AGMs reprieved by Tribunal

Denel, a prominent South African State-owned defence and technology conglomerate, has been granted a reprieve by the Companies Tribunal for failing to hold annual general meetings (AGMs) on time. As per the Companies Act, AGMs must be held annually, within 15 months of the previous AGM. However, Denel last held an AGM in January 2021 and had to request extensions for the 2021, 2022, and 2023 financial years as the Auditor General was unable to conclude audits within the stipulated time. This information was reported by Johannesburg-based financial daily Business Day.

The Companies Tribunal, established by the Department of Trade, Industry and Competition (DTIC), aims to provide the speedy resolution of company disputes. The reprieve comes as a relief for Denel, which recently appointed a permanent chief executive after three years.

In other news, it has been reported that Denel's turnaround plan will be implemented over three years. The plan's stabilise and sustain component has already been completed, and the company expects to fully implement the plan by the end of the 2024/25 financial year. This information was shared by Democratic Alliance (DA) shadow public enterprises minister Mimmy Gondwe, who heard about the plan from Denel's management.

Public Enterprises Minister Pravin Gordhan has revealed that Denel's order book stands at R4 406 million, with R16 580 million listed as "order pipeline/winnable projects" at the end of last year. This suggests that the company has a healthy pipeline of potential business, which may help to revive its financial performance. Moreover, in response to a parliamentary question, it was revealed that Denel has not paid out any bonuses to the Chief Executive Officer, Chief Operations Officer, and Chief Financial Officer since May 2019, indicating the company's current financial constraints.

These recent developments provide a more detailed understanding of Denel's current state of affairs, including its financial situation, management practices, and future outlook.