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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
Shareholders are referred to the Board’s prospects statement in
the June 2017 results released on the Stock Exchange News Service
(“SENS”) on 13 September 2017. This statement guided that the
challenging economic climate was expected to prevail, with the
volatile exchange rate continuing to impact the group
negatively.
Period under review
Although Jasco met its commitment to improve its profitability
compared to the immediately preceding six-month period to June
2017, results for the six months to 31 December 2017 continued
to be hampered by market conditions.
Jasco therefore advises that it expects:
- Revenue growth for the six months to 31 December 2017 to
be between 6,5% and 7,5% higher than the previous
corresponding period’s R521,1 million,
- Earnings per share (“EPS”) to be between 63% and 73% lower
(between 1,71 cents and 2,34 cents per share) compared to
the 6,28 cents per share for the previous corresponding
period,
- Headline earnings per share (“HEPS”) to be between 76%
and 86% lower (between 0,88 cents and 1,52 cents per
share) than the 6,34 cents per share for the previous
corresponding period.
The difference between earnings and headline earnings growth
relates to the change in control in the Kenya business from a
subsidiary to an associate, which gave rise to a net gain of
R1,7 million or 12% at an earnings level.
The weighted average number of shares in issue for the period
was up slightly from 224 615 505 to 226 777 629 due to a reduction
in the number of treasury shares. This did not have a material
impact on the results. No shares have been issued since the
previous financial year ended 30 June 2017.
The key features of the performance in the last six months
include:
- Carriers’ revenue and profit performance was flat due to
the subdued telecommunications sector;
- Enterprise’s revenue and profit performance improved on the
inclusion of Reflex Solutions;
- Intelligent Technologies’ revenue and profit performance
declined due to a disappointing performance in Power &
Renewables due to the continued slowdown in its markets;
- Electrical Manufacturers performed well on steady revenue
with improved profitability; and
- International’s progression has been slower than
anticipated due to depressed conditions in Kenya and the
Middle East, with higher start-up losses than expected.
Acquisition of Reflex Solutions
Reflex Solutions, in which Jasco acquired 51% on 1 May 2017,
contributed strongly to revenue and operating profit growth for
a full six-month period. However, this contribution did not fully
flow through to earnings due to the minority’s 49% share of
profits of R4,6 million.
Conclusion
Although the economic outlook for 2018 remains uncertain, Jasco
will continue its focus on improving profitability through its
strategy of reducing costs and targeting higher-margin revenue.
The information in this 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 2017 will be announced on or about 12 February 2018.
Midrand
1 February 2018
Sponsor
Grindrod Bank Limited
Date: 01/02/2018 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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