JASCO ELECTRONICS HOLDINGS LIMITED - Voluntary trading statement

Voluntary trading statement

JASCO ELECTRONICS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration Number 1987/003293/06
Share code: JSC     ISIN: ZAE000003794
(“Jasco” or “the company” or “the group”)



VOLUNTARY TRADING STATEMENT


Introduction
Shareholders are referred to the Board’s prospects statement in
the June 2016 results released on the Stock Exchange News Service
(“SENS”) on 26 September 2016, where our guidance was that the
challenging economic climate in 2016 was expected to prevail
throughout 2017, with the volatile exchange rate continuing to
impact the group negatively.

In spite of the difficult economic conditions in South Africa
and the negative impact of the rate of exchange during the
period, Jasco’s first half performance was pleasing, with the
benefit of focusing on improving margins rather than revenue
growth evident in the results.

Period under review
Jasco therefore advises that, for the six months ended 31
December 2016, the company expects:
   -   Revenue growth for the six months to 31 December 2016 to
       be between 5,5% and 7,5% lower than the previous
       corresponding period
   -   Earnings per share (“EPS”) to be between 4,5% and 14,5%
       higher (between 5,99 cents and 6,57 cents per share)
       compared to the 5,73 cents per share for the previous
       corresponding period,
   -   Headline earnings per share (“HEPS”) to be between 5,5%
       and 15,5% higher (between 6,05 cents and 6,63 cents per
       share) than the 5,74 cents per share for the previous
       corresponding period.


The weighted average number of shares in issue for the period
was up slightly from 224 190 191 to 224 615 505 and had no
material dilutionary impact. No shares have been issued since
the previous financial year ended 30 June 2016.

M-TEC sale
The group sold its 51% shareholding in its associate, M-TEC, as
disclosed to shareholders previously in 2016. The receipt of the
proceeds from the sale was accelerated as announced on SENS on
2 November 2016. These proceeds were utilised to repay long term
debt and consequently to reduce the group’s gearing ratio.

Conclusion
As committed, Jasco has shown an improvement in its profitability
compared to the previous corresponding period, and delivered a
much improved performance when compared to the immediately
preceding six-month period to June 2016.

Although the economic outlook for 2017 remains uncertain, Jasco
is well positioned to continue improving profitability. The
group now has lower levels of debt, all businesses are
contributing to profits and it has good cash generation.

The information in this voluntary trading statement has not been
reviewed or reported on by the company’s external auditors.

Jasco’s unaudited interim results for the six months ended 31
December 2016 will be announced on 14 February 2017.


Midrand
31 January 2017


Sponsor
Grindrod Bank Limited

Date: 31/01/2017 03:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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