JASCO ELECTRONICS HOLDINGS LIMITED - Trading Statement

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”)

TRADING STATEMENT

Jasco’s financial year to 30 June 2022 continued to be extremely
challenging, with a number of external factors impacting the
group’s turnaround efforts.

The group was faced with social unrest in mainly KwaZulu-Natal
in July 2021, the national NUMSA strikes in October 2021, a
three-month plant level strike in 2022 at its Manufacturing
business, ongoing international supply chain disruptions and
product shortages, as well as continued Eskom load shedding.

These factors substantially affected the current financial
year’s performance and resulted in a loss-making position
following pleasing operating profit and earnings improvements
for the comparative financial year and the 2022 interim results.

In addition to managing the effects of these external factors,
the team continued with corrective action to restore stability
to the organisation and ensure consistent profitability.

These actions included:
   •   Continued customer diversification and new product
       offerings across the businesses, whilst maintaining tight
       cost control;
   •   Optimising its portfolio with the disposal of Jasco
       Property Solutions in May 2022;
   •   A rights issue during the year and related debt reductions;
   •   The acquisition of the Midrand Head Office property by
       Jasco’s major shareholder, Community Investment Holdings
       Proprietary Limited, and the renegotiation of a new lease
       agreement (approved by shareholders on 15 September 2022);
       and
   •   Corrective action in the loss-making Security & Fire
       business which included extensive changes to the
       divisional management in July and August 2022.
For the year ended 30 June 2022, the group expects:
  •   An earnings per share (“EPS”) loss of -5.9 cents earnings
      per share compared to a 2.9 cents profit per share for the
      previous corresponding period (an expected decrease in
      excess of 100%).
  •   A headline earnings per share (“HEPS”) loss of -6.4 cents
      per share, compared to the -0.6 cents loss per share for
      the previous corresponding period (an expected decrease in
      excess of 100%).
The weighted average number of shares in issue for the period of
278 561 061 increased following the rights issue of 138 125 525
shares in February 2022.
The information in this trading statement has not been reviewed
or reported on by the company’s external auditors.

Jasco’s audited annual results for the year ended 30 June 2022
will be announced before the end of October.


Midrand
30 September 2022


Sponsor
Grindrod Bank Limited

Date: 30-09-2022 04:30:00
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