Wrap Text
Unaudited interim results for the six months ended 31 December 2017
JASCO ELECTRONICS HOLDINGS LIMITED
Registration number 1987/003293/06
JSE share code: JSC
ISIN: ZAE000003794
("Jasco" or "the company" or "the group")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2017
REVENUE UP 7% to R557,2m
OPERATING PROFIT DOWN 1% to R29,9m
EPS DOWN 68% to 2cps
GEARING improved to 30%
INTRODUCTION
OPERATIONAL PERFORMANCE
Although the results for the six months to December 2017 were weaker than the
comparative period to December 2016, the group met its market commitment of
improving its operational performance compared to the preceding six months ended
June 2017. This was due to a particular focus on maintaining margins and volumes
against continued tough market conditions.
The main contributors to the results were:
- The Carrier business – representing 32% of group revenue – was slightly down
at the revenue level as the major telecommunications operators continued to cut
costs. It remains the biggest profit contributor to the group, with operating profit
performance up marginally.
- Enterprise – representing 37% of group revenue – made good progress in
improving its profitability with Communications and Security reversing the
prior loss position to a breakeven for the first half, and the recently-acquired
Reflex Solutions making a strong top- and bottom-line contribution for a full
six-month period.
- Intelligent Technologies – representing 12% of group revenue – delivered a
disappointing performance, with a drop in revenue and operating profit. This
was mainly in the energy sector due to difficult market conditions.
- Electrical Manufacturers – representing 19% of group revenue – delivered steady
top-line growth mainly due to its diversification strategy. New customers added to
volumes and led to a pleasing operating profit growth.
- The start-up International businesses: The business in Kenya did not deliver on
volume expectations due to the socio-political situation, which resulted in curtailed
customer demand in 2017. These results continue to be included in Enterprise for
this reporting period and are comparable to the prior period. The business in the
Middle East did not gain the traction expected in the last six months due to the
group declining to accept three new projects due to commercial terms not being
acceptable. Due to the lack of business, substantial cost cutting was undertaken
late in the period. These results are equity-accounted.
Refer to the operational review for the detail.
FINANCIAL OVERVIEW
STATEMENT OF COMPREHENSIVE INCOME
Revenue of R557,2 million was 7% higher (Dec 2016: R521,1 million), mainly
due to a six-month revenue contribution of R84,0 million from Reflex Solutions. The
contributors to revenue were:
Dec 2017 Dec 2016
R'm % change R'm
Carrier R182,4 –4.7 R191,4
Enterprise R207,4 +40.3 R147,9
Intelligent Technologies R67,5 –19.4 R83,8
Electrical Manufacturers R104,8 +2.2 R102,5
Profit before interest and taxation (PBIT) was 1% down at R29,9 million
(Dec 2016 R30,1 million). This was mainly due to the R5,8 million drop in Intelligent
Technologies, R1,5 million higher than expected losses in Kenya, R3,6 million
unrealised foreign exchange loss in December and a R4,6 million cost increase
attributable to IT, training, acquisition-related consulting activities and non-deductible
VAT. This was offset somewhat by the first-time six-month profit contribution from
Reflex Solutions of R12,5 million, and a pleasing performance from Electrical
Manufacturers which was up R1,0 million on improved margins.
Although the foreign currency risk is prudently managed through a hedging
programme, the hedge book can be impacted by rand volatility when measuring
the value of the financial instruments at reporting dates. The sudden strengthening of
the Rand in late December resulted in unrealised forex losses of R3,6 million when
revaluing the hedge book at the cut-off date.
Net finance costs of R9,2 million increased from the corresponding period's
R5,6 million. The finance income earned from long-term receivables decreased from
R3,0 million to R1,1 million and mainly relates to the group's long-term co-location
contract with an African telecommunications operator. This contract is two months
from completion. The main contributor to finance costs was interest on the corporate
bond of R2,8 million (Dec 2016: R5,5 million) and interest on the working capital
facility of R5,2 million. The bank account interest swung from R1,5 million interest
paid on overdrafts for the six months to December 2016 to R1,0 million interest
received on favourable balances for the six months to December 2017.
The taxation expense of R6,1 million (Dec 2016: R9,3 million) was due to a number
of the subsidiary companies that returned to tax-paying positions on full utilisation
of historic assessed losses. The higher effective tax rate of 35,5% was mainly due
to the corporate bond interest, which is non-deductible, and the change to equity
accounting for the Kenya entity.
Profit attributable to ordinary shareholders decreased by 68% to R4,6 million
(Dec 2016: R14,1 million).
Headline earnings and headline earnings per share decreased by 81% to
R2,7 million (Dec 2016: R14,2 million) and 81% to 1,2 cents per share
(Dec 2016: 6,3 cents per share) respectively.
The main reasons for lower headline earnings are:
- Higher interest paid;
- Equity accounted losses from International start-ups;
- Ineffective tax rate due to non-deductibility of corporate bond interest; and
- Increase in minorities share of profits, mainly Reflex Solutions.
Earnings per share (EPS) was down by 68% to 2,0 cents per share (Dec 2016:
6,3 cents per share). The weighted average number of shares in issue increased
slightly from 224,6 million shares to 226,9 million shares due to a reduction in the
number of treasury shares. This did not have a material impact on the comparison to
the prior 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. This had a 12% positive impact at an earnings level.
STATEMENT OF FINANCIAL POSITION
Non-current assets and liabilities
Plant and equipment of R82,8 million (Dec 2016: R61,2 million) increased on
capital expenditure of R5,4 million in the period (Dec 2016: R7,0 million) and the
inclusion of Reflex Solutions in the asset base. The capital expenditure mainly related
to R3,8 million in IT network equipment in Reflex Solutions to meet growing customer
demand of the service offering. The remainder was spread across the rest of the businesses.
Intangible assets (including goodwill) of R144,0 million increased from R91,7 million
in December 2016 due to the goodwill arising from the acquisition of Reflex
Solutions in May 2017. This compares to R140,9 million at 30 June 2017. The
small increase was due to the additional development required in premises-based
voice transaction management applications.
The investment in associate increased from R0,3 million at 30 June 2017 to
R5,4 million at 31 December 2017 due to the change from a subsidiary to an
associate of the Kenya business of R3,1 million and the investment in Jasco Technical
Solutions of R2,3 million as part of Jasco's enterprise development programme.
The deferred tax asset increased from R27,5 million at 30 June to R30,0 million
at 31 December 2017 due to the increased operating losses in the Energy and
Channel businesses.
The increase in long-term interest-bearing liabilities of R177,1 million (Dec 2016:
R74,3 million) was mainly due to the new working capital from the Bank of China.
This facility replaced the group's previous bank overdrafts and increased from R100
million at 30 June 2017 to R120 million at 31 December 2017. The corporate
bond holders have agreed to an extension of the repayment date from 31 January
2019 to 31 January 2020 and the balance owing of R45 million at 31 December
2017 is unchanged from the last financial year end. The remaining R12,1 million
relates mainly to the group's asset financing. Including the cash on hand, the net
debt:equity ratio improved from 47% in June 2017 to 30% in December 2017 and
is well within the group's maximum range of 50%.
Working capital
Net working capital days of 32,6 days was pleasingly below the target of 35 days.
This was mainly due to the reduction of inventory levels and improvement in trade
receivables and trade payables. The following table compares the current period to
the June 2017 and December 2016 positions:
Dec 17 Jun 17 Dec 16
Inventory 32.9 33.6 39.7
Receivables 81.7 91.5 106.0
Payables (81.9) (91.2) (99.2)
NWC days 32.6 33.9 46.5
While net working capital days were a good improvement compared to December
2016, this further improved from 33,9 days in June 2017 and demonstrates
management's continuing effort in staying within the target set.
Inventories on hand were R89,2 million (Dec 2016: R105,4 million).
The inventory levels in Electrical Manufacturers decreased compared to last December,
but increased slightly from the June 2017 position due to the late December
holiday closure of its major large appliances customer. The inventories in Carrier
of R37,3 million decreased by R6 million and Communications and Security in
Enterprise reduced by R10,0 million to R7,3 million from the prior year due to
a combination of lower sales volumes and a deliberate reduction by divisional management.
Trade and other receivables decreased to R231,8 million (Dec 2016:
R251,7 million) from R274,7 million at the June 2017 year end. The net trade
receivables of R176,5 million increased from R172,7 million in December 2016
and R207,1 million in June 2017. The age profile of the debtors' book is good,
with isolated incidents of delayed payments from one or two larger customers across
the businesses. Other receivables and pre-payments decreased to R55,3 million
(Dec 2016: R79,0 million) from R68,4 million in June 2017 on a reduction in the
prepaid service level agreements with suppliers (mainly in Enterprise).
Non-interest-bearing liabilities of R185,8 million (Dec 2016: R163,4 million)
decreased from R204,5 million in June 2017 on a reduction in trade and other
payables. This was mainly due to an improved payment profile and the payment of
R30,0 million for the Reflex acquisition.
The deferred maintenance revenue of R57,5 million (Dec 2016: R67,7 million)
was similar to R55,3 million in June 2017 and relates to prepaid service level
agreements from blue-chip customers, predominantly in Enterprise.
STATEMENT OF CASH FLOWS
The statement of cash flows reflects cash generated from operations before working
capital changes of R42,8 million compared to R38,9 million in December 2016.
This was in line with the operating profit performance. Working capital changes
reflect an inflow of R24,3 million (Dec 2016: R24,7 million outflow). This inflow
mainly relates to the decrease in inventories and accounts receivable. Management
maintained its focus on reducing stock levels where appropriate, improving terms of
supply from major trade partners, and improving debtors' collections.
The net interest payment of R9,2 million (Dec 2016: R5,6 million) increased, while
income tax payments increased from R4,7 million to R5,7 million. The dividend
of 1 cent per share declared in September 2017 was paid and resulted in a
R3,6 million cash outflow.
Consequently, total cash inflows from operating activities of R48,6 million compares
to a R0,6 million outflow recorded in December 2016.
Investing activities saw an outflow of R8,0 million (Dec 2016: R33,8 million inflow)
due to the capital expenditure mentioned under the statement of financial position.
The financing activities outflow of R31,8 million (Dec 2016: R30,4 million outflow)
relates to the repayment of the project funding vendor loan and other asset
financing loans.
Accordingly, the closing cash balance of R104,0 million increased by R8,5 million
(net of cash acquired on acquisition of subsidiaries of R0,35 million) from
R95,5 million in June 2017 (Dec 2016: R2,8 million increase).
OPERATIONAL REVIEW
There were no changes to the group structure in this period.
Carrier – 32% of group revenue
Revenue decreased by 4,7% to R182,4 million (Dec 2016: R191,4 million), mainly
due to a continued slowdown in spend by the major telecommunications operators.
This business unit was also again affected by the volatility in the exchange rate.
This resulted in a loss of R2,0 million compared to a loss of R3,1 million in the
corresponding prior period. In spite of this, operating profit increased slightly to
R25,2 million (Dec 2016: R24,8 million), with an operating margin of 13,8%
(Dec 2016: 12,9%).
Enterprise – 37% of group revenue
Revenue for the year increased by 39,3% to R207,4 million (Dec 2016:
R147,9 million) due to the first-time six-month contribution of R84,0 million from
Reflex Solutions. The annuity service level agreement revenue base of 60% of
total revenue was maintained. The operating profit increased to R12,3 million
(Dec 2016: R3,9 million) and the operating margin improved from 2,7% to
5,9%, predominantly due to the R12,5 million operating profit from Reflex partly
offsetting the losses in Kenya and the Channel business. The overhead expenses of
R43,0 million (2016: R39,1 million) increased with Reflex's R11,2 million cost base.
Cost savings of R7,3 million were achieved in Communications & Security.
Intelligent Technologies – 12% of group revenue
Revenue decreased by 19,4% to R67,5 million (Dec 2016: R83,8 million) following
lower than expected volumes in the Energy business due to a continuing slowdown
in project spend from major customers. The operating profit of R3,8 million (Dec
2016: R9,6 million) was 60,9% down due to the lower volumes. The overhead
expenses increased by 5,4% from R17,2 million to R18,1 million in line with
inflation. Consequently, the operating margin of 5,6% declined from 11,4% last
year. Management is addressing the cost base in the Energy business.
Electrical Manufacturers – 19% of group revenue
In line with the strategy of increasing the customer base, Electrical Manufacturers
delivered steady revenue growth of 2,2% to R104,8 million (Dec 2016:
R102,5 million) on volumes from new customers and steady volumes from its major
customer. The continued focus on diversifying the revenue base is delivering good
results. The operating profit of R9,5 million increased from R8,5 million on higher
margins and good cost control. The operating margin of 9,1% improved from 8,3%
and cost control remains very tight.
KEY INTERNAL INITIATIVES
The following key internal initiatives are underway:
Create scale through bolt-on acquisitions
The group is reviewing all investments where minority shareholdings are present,
with the intention of buying out these shareholders at the optimal time. Furthermore,
selected acquisitions will be considered in key areas of the Jasco portfolio where
additional scale is required.
Raise capital in the equity market
The group plans to raise additional capital in the next six months through the issue
of approximately 67 million shares at a price to be determined in the form of an
underwritten rights offer to the existing shareholders. The intention is to use the capital
for bolt-on acquisitions to deliver on the group's strategy and growth, as well as to part-
pay the corporate bond by year-end. Further announcements will follow in this regard.
Reducing debt
The group plans to repay the corporate bond in increments over the next 12 months,
subject to the normal working capital demands of the business. This will remove the
tax inefficiencies and reduce the effective tax rate.
Improving operating margins and performance
The management team will remain focused on cost control in all areas of the
business, while remaining selective on the business the group takes on in favour of
higher-margin quality income. All businesses that are below target are currently
under review.
Working capital management
The focus on working capital management in recent years has delivered results,
as evidenced in the net working capital days. However, management continues to
focus on this on a permanent basis to maintain the improved position achieved in
the businesses.
Transformation
The transformation of Jasco is receiving ongoing attention to ensure it remains
competitive. Jasco achieved a Level 4 BBBEE rating in terms of the new ICT sector
codes. Jasco is currently 57,5% black-owned and 30% black female-owned.
The following areas will continue to receive focus in 2018:
- Skills development and training of employees
- Employment equity – achieving targets at all management levels
- Retention of key technically skilled and scarce resources
GROUP PROSPECTS
As outlined, the group continues to operate against difficult economic and market
conditions in all its markets. The extreme exchange rate volatility in South Africa also
made trading more difficult. The risk of a credit ratings downgrade of South Africa's
sovereign debt by the major credit ratings agencies is high and the International
Monetary Fund has reduced the forecast economic growth rates for the country to
less than one percent.
To counter this, Jasco will continue to execute its strategy and concentrate on the
following additional key areas:
- Maintain its focus on costs and ensure a continued improvement in sustainable
profitability levels in all business units, as well as review the head office cost base;
- Maintain the financial gearing at less than 50% from the cash generated by
Jasco's operations;
- Ongoing expansion into East Africa by leveraging off the base established in
Kenya. Reassess the viability of the base in the United Arab Emirates and the
markets in the Middle East and North Africa;
- Add new products and services to Jasco's portfolio, with an emphasis on
Managed Solutions as a fast-growing and higher-margin business area;
- Evaluate bolt-on acquisitions to ensure smaller businesses achieve the required
critical mass to remain competitive; and
- Continued increase in transformation.
Jasco's primary focus in the short-term will therefore remain on delivering sustained
profits through a combination of organic growth and carefully targeted acquisitions
in key growth areas.
Shareholders are advised that any forward-looking information or statements
contained in this announcement have not been reviewed or reported on by Jasco's
independent auditors.
SUBSEQUENT EVENTS
There were no material subsequent events.
CHANGES TO THE BOARD
There were no changes to the Board during the period.
For and on behalf of the board
Dr ATM Mokgokong AMF da Silva WA Prinsloo
(Non-executive chairman) (Chief executive officer) (Chief financial officer)
12 February 2018
BASIS OF PREPARATION OF INTERIM RESULTS
The unaudited results comply with IAS 34 – Interim Financial Reporting. The
accounting policies and methods of computation used in the preparation of this
report are consistent with those used in the preparation of the annual financial
statements for the year ended 30 June 2016, which comply with International
Financial Reporting Standard ("IFRS"), the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Pronouncements as
issued by the Financial Reporting Standards Council, the Listings Requirements of the
JSE Limited and the Companies Act (2008) of South Africa.
ASSESSMENT OF THE IMPACT OF NEW STANDARDS
IFRS 15 – Revenue from contracts with customers
Initial assessment has identified that revenue recognised from Service Level
Agreements (SLAs) will be impacted by this standard. A detailed review of significant
contracts across all business units is currently under way, this is expected to be
finalised by the next reporting period. The current revenue recognition principles
related to SLAs under IAS 18 are not significantly different from those set out under
the output method in IFRS 15.B.15.
IFRS 9 – Financial instruments
A low impact on adoption of the standard is expected as the Group's financial
assets and liabilities are non-complex financial instruments consisting primarily of
accounts receivable, accounts payable and interest-bearing borrowings, these are
recognised and carried at amortised cost.
The Group will adopt the modified retrospective model for IFRS 9 and IFRS 15.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair values of financial instruments are determined using appropriate valuation
techniques. These include recent market transaction and other valuation models.
Significant inputs include exchange rates. The group only has assets that are carried at
fair value in level 2. There is no difference between the fair value and carrying value
of financial instruments not presented below due to either the short-term nature of these
items, or the fact that they are priced at variable interest rates.
Fair value hierarchy
Financial instruments carried at fair value in the statement of
financial position (R'000):
– Financial assets at fair value through profit or loss –
– Financial liabilities at fair value through profit or loss 6 871
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
Dec 2017 Dec 2016 % change Jun 2017
(R'000) 6 months 6 months 12 months
Revenue 557 161 521 141 6,9% 1 044 301
Turnover 554 997 518 150 7,1% 1 037 315
Interest received 2 164 2 991 (27,6%) 6 986
Operating profit before interest
and taxation 29 906 30 106 (0,7%) 41 941
Interest received 2 164 2 991 (27,6%) 6 986
Interest paid (11 406) (8 603) 32,6% (18 521)
Equity accounted share of loss from
joint venture/associate (3 474) (1 823)
Profit before taxation 17 190 24 494 (29,8%) 28 583
Taxation (6 101) (9 266) (34,2%) (16 253)
Profit for the period/year 11 089 15 228 (27,2%) 12 330
Other comprehensive income (380) (209) 0,0% 319
Total comprehensive income for
the period/year 10 709 15 019 (28,7%) 12 649
Profit attributable to:
– minority shareholders 6 504 1 117 482,3% 4 202
– equityholders of the parent 4 585 14 111 (67,5%) 8 128
Profit for the period/year 11 089 15 228 (27,2%) 12 330
Total comprehensive income
attributable to:
– minority shareholders 6 504 1 117 482,3% 4 202
– equityholders of the parent 4 205 13 902 (69,8%) 8 447
Total comprehensive income for
the period/year 10 709 15 019 (28,7%) 12 649
Reconciliation of headline
earnings
Net earnings attributable to
equityholders of the parent 4 585 14 111 (67,5%) 8 128
Headline earnings adjustments (1 924) 135 1525,1% (2 562)
– profit on disposal of subsidiary/
business unit (10 914) – (2 641)
– loss on acquisition of associate 9 213 – –
– recycle FCTR on disposal of
subsidiary (380) – –
– net after-tax loss/(profit) on
disposal of fixed assets 157 135 79
Headline earnings 2 661 14 246 (81,3%) 5 566
Number of shares in issue ('000) 229 319 229 319 0,0% 229 319
Treasury shares ('000) 2 542 4 704 2 407
Weighted average
number of shares on which
earnings
per share is calculated ('000) 226 778 224 615 1,0% 226 912
Dilutive shares
– dilutive shares and
options ('000) 172 105 2 451
Weighted average number
of shares on which diluted
earnings per share is
calculated ('000) 226 949 224 720 1,0% 229 363
Ratio analysis
Attributable earnings (R'000) 4 585 14 111 (67,5%) 8 128
EBITDA (R'000) 42 781 39 040 9,6% 56 315
Earnings per share (cents) 2,0 6,3 (67,8%) 3,6
Diluted earnings per share (cents) 2,0 6,3 (67,8%) 3,5
Headline earnings per
share (cents) 1,2 6,3 (81,5%) 2,5
Diluted headline earnings
per share (cents) 1,2 6,3 (81,5%) 2,4
Dividend per share - final (cents) 1,0 2,0 (50,0%) –
Net asset value per share (cents) 102,6 104,3 (1,6%) 102,2
Net tangible asset value
per share (cents) 39,1 63,5 (38,4%) 40,1
Debt:Equity (%) 30,0 34,6 (13,4%) 47,1
Interest cover (times) 3,0 5,4 (43,6%) 3,4
EBITDA interest cover (times) 4,6 7,0 (33,5%) 4,9
SUMMARISED SEGMENTAL REPORTS
Income and expenses 31 Dec 2017 31 Dec 2016 30 June 2017
6 months 6 months 12 months
Operating Operating Operating
(R'000) Revenue profit/(loss) Revenue profit/(loss) Revenue profit/(loss)
Carrier 182 415 25 170 191 354 24 884 385 846 51 032
Enterprise 207 377 12 285 147 858 3 925 315 652 (3 446)
Intelligent Technologies 67 519 3 751 83 792 9 590 165 294 22 094
Electrical Manufacturers 104 793 9 533 102 494 8 482 190 795 13 275
Sub-total operating divisions 562 104 50 739 525 498 46 881 1 057 587 82 955
Other 1 574 (20 226) 1 658 (15 671) 4 770 (36 887)
Adjustments (6 517) (607) (6 015) (1 104) (18 056) (4 127)
Total 557 161 29 906 521 141 30 106 1 044 301 41 941
Financial position
(R'000) Assets Liabilities Assets Liabilities Assets Liabilities
Carrier 121 668 35 773 161 294 44 161 150 705 38 191
Enterprise 165 020 85 755 141 139 73 453 152 772 88 623
Intelligent Technologies 39 270 6 990 79 749 36 829 75 254 32 824
Electrical Manufacturers 85 335 11 811 78 528 10 610 89 445 19 776
Sub-total operating divisions 411 293 140 329 460 710 165 053 468 176 179 414
Other 71 008 187 871 62 846 156 319 170 685 302 827
Adjustments 220 162 116 903 51 560 11 318 92 400 (381)
Total 702 463 445 103 575 116 332 690 731 261 481 860
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
(R'000) Dec 2017 Dec 2016 Jun 2017
ASSETS
Non-current assets 262 889 182 428 251 663
Plant and equipment 82 791 61 186 78 936
Intangible assets 143 989 91 687 140 910
Investment in joint venture/associate 5 358 – 284
Deferred tax asset 30 001 28 640 27 526
Other non-current assets 750 915 4 007
Non-current assets held for sale – – –
Current assets 439 574 392 688 479 598
Inventories 89 214 105 379 86 334
Trade and other receivables 231 775 251 688 274 747
Foreign currency contracts – – 604
Short-term portion of other non-current assets 6 157 20 394 15 082
Taxation refundable 8 438 5 190 7 280
Cash and cash equivalents 103 990 10 037 95 551
Total assets 702 463 575 116 731 261
EQUITY AND LIABILITIES
Share capital and reserves 257 360 242 426 249 401
Non-current liabilities 184 241 79 523 168 504
Interest-bearing liabilities 177 134 74 333 162 598
Deferred maintenance revenue 1 440 997 331
Deferred tax liability 5 667 4 193 5 575
Current liabilities 260 862 253 167 313 356
Short-term portion of interest-bearing liabilities 4 043 19 649 50 373
Bank overdraft – – –
Non-interest bearing liabilities 185 828 163 424 204 548
Foreign currency contracts 6 871 1 139 476
Deferred maintenance revenue 57 530 67 676 55 333
Taxation liability 6 590 1 279 2 626
Total equity and liabilities 702 463 575 116 731 261
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
Dec 2017 Dec 2016 Jun 2017
(R'000) 6 months 6 months 12 months
Attributable to equity holders of the parent
Opening balance 231 956 224 749 224 749
Treasury shares - Share Incentive Trust – 127 3 597
Share-based payment reserve – (94) 3 162
Utilisation of equity settled share-based payment
reserve – – (3 521)
Transactions with non-controlling shareholder – – –
Total comprehensive income 4 205 13 902 8 447
– Profit for the period/year 4 585 14 111 8 128
– Other comprehensive income (380) (209) 319
Dividends declared (3 557) (4 475) (4 478)
Closing balance 232 604 234 209 231 956
Non-controlling interests
Opening balance 17 445 7 100 7 100
Transactions with non-controlling shareholder – – 3
Acquisition of companies 807 6 966
Total comprehensive income 6 504 1 117 4 202
– Profit for the period/year 6 504 1 117 4 202
– Other comprehensive income – – –
Dividend paid to non-controlling shareholder – – (826)
Closing balance 24 756 8 217 17 445
Total equity 257 360 242 426 249 401
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Dec 2017 Dec 2016 Jun 2017
(R'000) 6 months 6 months 12 months
Cash generated from operations before working
capital changes 42 781 38 946 58 790
Working capital changes 24 313 (24 730) 7 060
Cash generated from operations 67 094 14 216 65 850
Net financing costs (9 242) (5 612) (11 535)
Net taxation paid (5 678) (4 679) (16 943)
Dividends paid (3 557) (4 475) (5 304)
Cash flow from operating activities 48 617 (550) 32 068
Cash flow from investing activities (7 973) 33 757 14 544
Cash flow from financing activities (31 794) (30 426) 41 878
Increase in cash resources 8 850 2 781 88 490
Directors and Secretary: Dr ATM Mokgokong (Chairman), MJ Madungandaba (Deputy Chairman),
JC Farrant*, MSC Bawa, PF Radebe*, TP Zondi* (Non-executives), AMF da Silva (CEO),
WA Prinsloo (CFO), TS Petje, SM Samuels (Executives), N Modisakeng (Company Secretary) *Independent
Registered office: Jasco Park, c/o 2nd Street and Alexandra Avenue, Midrand, 1632
Transfer secretaries: Link Market Services SA (Pty) Limited, 13th Floor, Rennie House,
19 Ameshoff Street, Braamfontein, 2001
Sponsor: Grindrod Bank Limited, Fourth Floor, Grindrod Tower, 8A Protea Place, Sandton, 2146
More information is available at: www.jasco.co.za
Date: 12/02/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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