Jasco final results June 2018
Revenue for the year increased 10.2% to R1.150 billion (2017: R1.044 billion), gross profit climbed to R362 million (2017: R315.7 million), operating profit jumped 28.1% to R53.7 million (2017: R41.9 million), profit attributable to ordinary shareholders of the parent rose 8.9% to R8.8 million (2017: R8.1 million), while headline earnings per share grew by 8% to 2.7 cents per share (2017: 2.5 cents per share).
Jasco's board declared a dividend of 1 cent per share.
To counter South Africa's low growth environment, Jasco will continue to execute its strategy and focus on the following additional key areas:
- Reduce financial gearing over the next financial year through continued cash generation from operations;
- Continue with targeted opportunities in Africa by leveraging off the established base in Kenya and the new local partnership;
- Ensure a return to acceptable and sustainable profitability levels in the Power and Renewables and Datavoice businesses;
- Drive regional growth in the Western Cape, KwaZulu-Natal and the Eastern Cape;
- Add to Jasco's products and services portfolio, with an emphasis on services in the form of managed solutions;
- Target large corporate and public (SOE) entities with the full portfolio; and
- Continue the transformation of Jasco, with employment equity and skills development a priority.
Following Jasco's delivery of profitable results, enabled by the more efficient group structure, the group's focus will be on executing on its strategy and improving earnings in the short-term.
Changes to the board
There were a number of changes to the board during the year under review. Mr AMF da Silva retired as the CEO on 30 June 2018 and was appointed as a non-executive director on 1 July 2018. Mr MJ van Vuuren joined the board on 1 July 2018 as the chief executive officer. The board expresses its gratitude to Mr da Silva for the hard work in turning the group around and welcomes Mr van Vuuren in his new role. Mr JC Farrant, the lead independent non-executive director, will retire from the board on 31 October 2018 after 21 years of service.