Denel suffers losses of over R1bn

JOHANNESBURG - Struggling state-owned arms firm, Denel will embark on a cost-cutting turnaround plan after posting more dismal results.

The company suffered a R1,7-billion loss in the 2017/18 financial year, following seven years of limited profits.

The delayed year-end report also identified R500-million in irregular expenditure.

READ: Denel fails to pay senior staff salaries in full

Denel blamed the loss on a steep fall in revenue, higher borrowing costs and foreign exchange losses.

A team of forensic investigators have been appointed by the new board of directors to probe procurement irregularities.

The state-owned entity is also exploring new joint venture partnerships.

Saudi Arabia is reportedly one of several bidders vying for a stake in the business.