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JASCO ELECTRONICS HOLDINGS LIMITED - Trading Statement

Release Date: 05/02/2015 16:15
Code(s): JSC     PDF:  
Wrap Text
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


Introduction
In   Jasco’s  first   reporting   period  post   the   group’s
finalisation of its three-year restructure, the group was
unfortunately negatively impacted by the extensive strike
action during July 2014 in the Metals & Engineering Industries
sector.

The main focus during the first half was therefore on
recovering the lost sales volumes in the businesses worst
affected by the strike, as well as continued cost reductions.
As was the case in the preceding six months to June 2014,
market conditions continued to remain challenging; with some
key customer orders delayed and increased competition in the
market.

Six months to December 2014
Jasco therefore advises that, for the     six months ended 31
December 2014, the company expects:
-   Earnings per share (“EPS”) to be between 82% and 92% lower
    (between 0,4 cents and 0,9 cents per share) compared to the
    4,9 cents per share for the previous corresponding period;
    and
-   Headline earnings per share (“HEPS”) to be between 83% and
    93% lower (between 0,4 cents and 0,9 cents per share) than
    the 5,3 cents per share for the previous corresponding
    period.


The weighted average number of shares in issue for the period
increased from 141 272 436 to 214 269 855.   An additional 72
million shares were issued in the rights issue of 21 January
2014.


Corporate Bond Issue and Redemption of Preference Shares
Shareholders are referred to the SENS announcements made on 29
January 2015 relating to Jasco’s first issue of R100 million
in terms of its listed R750 million Domestic Medium Term Note
Programme. The capital raised was used to fully redeem the R90
million preference shares, issued to AfroCentric Investment
Corporation Limited, on 30 January 2015.


M-TEC
The group has a 51% shareholding in its associate, M-TEC, with
Taihan Electric Wire Co. Limited (“Taihan”) of Korea holding
the remaining 49% interest. As reported previously, the
investment was classified as “held-for-sale” on 1 February
2013 for IFRS reporting purposes. Accordingly, Jasco stopped
equity accounting for this investment in its consolidated
results for the June 2013 and June 2014 financial years.
However Jasco has not been able to conclude the disposal of
the asset within the timeframe required. In terms of IFRS 5,
the financial statements for the periods since classification
as “held for sale” will therefore be amended accordingly. This
therefore requires a restatement of the audited results
previously reported on, the full impact of which will be
included in the December 2014 interim results announcement.


Conclusion
Although the current period was impacted by strike action and
delayed orders in the Enterprise business, the focus will
continue on recovering the lost volumes due to the strike. The
group is on track in terms of its commitment that the full
impact of the restructure will start flowing through from
2015.
Management remains committed to completing its exit strategy
of its investment in M-TEC.
The information in this trading statement has not been
reviewed or reported on by the company’s external auditors.

Shareholders are further advised that Jasco’s unaudited
interim results for the six months ended 31 December 2014 will
be announced on 16 February 2015.


Midrand
5 February 2015


Sponsor
Grindrod Bank Limited

Date: 05/02/2015 04:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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