The Denel Group achieved revenue of R3.6 billion. If Denel's associates were included, revenue amounted to almost R5 billion. Spending on research and development amounted to R835 million while cash spending amounted to R416 million, largely in DSA. Denel had improved its loss position before interest and tax by R283 million. The net profit before DSA's loss amounted to R82 million. The net loss was improved from the previous year to R246 million. Overall, Denel's financial statements showed steady improvement. Despite inflation, Denel managed to decrease its operating expenditure by 18%. There was a significant improvement from Denel's financial position in 2005. Denel's debt was a concern, but it was backed by government guarantees. The total debt as at 31 March 2010 was R1.8 billion. Denel's equity position at the end of March 2010 was just over R600 million.