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


During the year ended 30 June 2017, the group operated in
continued adverse trading conditions in South Africa, with low
economic growth and a volatile Rand. These market conditions
particularly impacted the second half of the financial year.

Based on these conditions, revenue will be between 1% and 5%
lower and operating profit maintained at the same level as the
previous corresponding period.

A number of once-off items had a particularly negative impact on
earnings and headline earnings. These included:

  1. Exiting unprofitable Security customer contracts and the
     resultant retrenchments
  2. Investments in the group’s international operations in the
     newly-established   Middle   East  and   further   business
     development costs in East Africa
  3. Transaction costs on two acquisitions, with a particular
     impact from the unsuccessful Cross Fire acquisition
  4. A material tax impact due to unutilised foreign tax credits
     and non-deductible acquisition costs.

These costs, as well as the tough market conditions, therefore
resulted in:

Earnings per share (“EPS”) for the year ended 30 June 2017 to be
between 38% and 48% lower (between 3.3 cents and 3.9 cents per
share) compared to 6.3 cents per share for the previous
corresponding period.
Headline earnings per share (“HEPS”) to be between 56% and 66%
lower (between 2.1 cents and 2.8 cents per share) compared to
the 6.3 cents per share for the previous corresponding period.
The weighted average number of shares in issue for the period
increased from 224 615 586 to 226 911 957 due to the vesting of
shares issued by the Jasco Share Incentive Trust.
In line with commitments to the markets, the gearing level
improved to 47% on the further reduction of debt following the
accelerated receipt of the M-TEC sale proceeds.
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 audited annual
results for the year ended 30 June 2017 will be announced on 13
September 2017.


Midrand
1 September 2017


Sponsor
Grindrod Bank Limited

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