Denel reports R1.7bn operating loss for 2017/18, turnaround progressing

State-owned defence industrial group Denel on Wednesday, with the release of its yearly results, stated that its operating loss of R1.7-billion for the 2017/18 financial year clearly shows a business that has had a difficult year, marked by lapses in governance, mismanagement and poor contract execution that resulted in severe liquidity challenges. The operating loss has been further compounded by R500-million in irregular expenditure and a disclaimer audit opinion by the Auditor-General which is of “grave concern” to Denel.