Wrap Text
Unaudited Interim results for the six months ended 31 December 2018
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 2018
REVENUE
UP 3,8%
R576,7 million
EBITDA
UP 40%
R44,2 million
OPERATING PROFIT
UP 46%
R26,0 million
EARNINGS
UP 144%
R2,9 million
EPS
UP 143%
1,3 cents
INTRODUCTION
Group overview
Jasco is structured around autonomous business units with their own responsibility for financial performance. Shared functions are centralised.
The management team is conscious of having to be agile and ensuring the group is innovative and differentiated. Jasco has a clear strategy of becoming a partner of
choice for its target customer base through the provision of smart infrastructure solutions. Jasco has a relevant portfolio, broad industry experience and understanding of the
priorities of the different markets and stakeholders. With this in mind, the group re-organised its business units post the year end of 2018 into four key areas. This provides
more focus and enhances the group's alignment to key markets to assist customers to address their challenges.
The four key areas are:
1. Information and Communication Technology ICT (split into ICT-Carrier and ICT-Enterprise)
2. Security and Fire
3. Energy
4. Manufacturing
In addition, Jasco is shifting from a product development, distributor and reseller model to that of a systems integrator and service provider of choice. The restructured
business units to deliver this strategy are:
ICT Security and Fire Energy Manufacturing
ICT-Carrier ICT-Enterprise - Access control and people - Power assurance (including - Component manufacturers
- Radiation systems (cables - Contact centres, workforce flow UPS and generators) - Tooling manufacture
and connectors) optimisation and unified - Surveillance and CCTV - Photo-voltaic (solar) - Plastic and injection
- Kitting communications - Fire detection and solutions, grid-tie, hybrid moulding
- Distributed antenna systems - IT infrastructure and suppression and off-grid systems - Metal pressings
- Masts and towers services
- Hi-Sites - Broadcast solutions
- Transmission/access - Voice recording solutions
networks - Property technology
- Outside plant (passive management (Smart
products) buildings)
- Internet of Things analytics
- Data centres, IaaS, PaaS
and SaaS
- Open access - fibre to the
home and business
Operational performance
Jasco delivered a strong improvement in tough economic conditions, with operating profit increasing by 46% for the six months to December 2018 and revenue
increasing by 3,8% to R576,7 million. Refer to the Financial Overview for detailed analysis.
All non-performing areas of the group were placed under restructure notice on 1 February 2019. This process is currently under way and will be completed in the
second half of this financial year. The group is also reviewing its head office cost structure.
As indicated in the group's year-end results, Jasco, in conjunction with its new auditors in 2018, restated a number of aspects of the 2017 and 2018 results due
to different interpretations in terms of IFRS. Details can be found in the group's 2018 integrated annual report.
FINANCIAL OVERVIEW
Statement of comprehensive income
Revenue increased by 3,8% to R576,7 million (restated Dec 2017: R555,5 million), mainly due to a six-month revenue contribution of R18,3 million from RAMM
Technologies in ICT-Enterprise and good growth in volumes from ICT-Carrier. This was partly offset by lower volumes in Energy and Electrical Manufacturers.
Operating profit before interest and taxation improved by 46% to R26,0 million (restated Dec 2017: R17,8 million). This was mainly due to the increase in profit
in ICT-Carrier and ICT-Enterprise and ongoing cost containment. As the group continues to increasingly invest in technology, measuring earnings before, interest, taxation,
depreciation and amortisation (EBITDA) has become a more relevant management measure and allows for improved comparability to Jasco's peers. On this basis,
EBITDA increased by 40% to R44,2 million (Dec 2017: R31,6 million)
Net finance cost of R10,8 million increased from the R9,3 million for the six months to December 2017. The finance income earned from long-term receivables
decreased from R1,1 million to zero on conclusion of the group's long-term co-location contract with a regional telecommunications operator in F2018. The
main contributor to finance costs was interest on the group's corporate bond and working capital facility.
The taxation expense was R6,8 million (restated Dec 2017: R6,2 million). Although the effective tax rate of 47.3% improved significantly from the 79.0% for the period
ended 30 June 2018, it remains higher than the statutory rate. The key contributor to this is the corporate bond interest, which is non-deductible, as well as a number of
entities where deferred tax is not recognised on losses incurred.
The equity accounted loss of R0,8 million relates to the international operations. The loss decreased from a R2,5 million loss for the six months ended 31 December
2017 due to cost cutting undertaken in East Africa and the Middle East.
Profit attributable to ordinary shareholders increased by 144% to R2,9 million (restated Dec 2017: R6,6 million loss). Earnings per share (EPS) increased by 143%
to 1,3 cents per share (restated Dec 2017: 2,9 cents loss per share). The weighted average number of shares in issue increased from 226,8 million shares to
228,6 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.
Headline earnings increased by 250% to R3,0 million (restated Dec 2017: R2,0 million loss) and headline earnings per share increased by 248% to 1,3 cents
per share (restated Dec 2017: 0,9 cents loss per share).
The difference between earnings and headline earnings this year relates to a non-material loss on disposal of fixed assets.
Statement of financial position
Non-current assets and liabilities
Plant and equipment of R76,2 million (restated Dec 2017: R78,1 million) decreased on lower capital expenditure of R2,1 million (Dec 2017: R6,0 million).
The capital expenditure mainly relates to plant and machinery replaced in Electrical Manufacturers to improve production efficiency.
Intangible assets (including goodwill) of R150,8 million increased from R115,1 million in December 2017 and relates primarily to the goodwill and intangible
assets from the RAMM acquisition in March 2018. The carrying value reduced from R154,5 million at June 2018 due to the ongoing amortisation of intangibles relating
to customer contracts, mainly in ICT-Enterprise.
The investment in international associates decreased from R4,4 million at 30 June 2018 to R3,7 million at 31 December 2018 due to the equity accounted losses
in the international operations in difficult trading conditions in East Africa and the Middle East.
The net deferred tax asset increased from R9,4 million at 30 June 2018 to R14,1 million at 31 December 2018 due to the recognition of deferred tax assets
related to the operating losses in the Power entity. The assessed loss in the Enterprise Communications entity was unchanged at a 50% recognition level.
Other financial assets, including the short-term portion, of R15,8 million (Dec 2017: R6,9 million) mainly relates to the finance lease receivable from a long-standing
customer for a call centre upgrade delivered by the ICT-Enterprise business.
The interest-bearing liabilities of R201,5 million (Dec 2017: R185,6 million) include the short-term portion. The increase was primarily due to the additional R25,0 million
working capital loan from the Bank of China. Stakeholders are reminded that Jasco concluded its maiden R100 million issue in terms of a R750 million corporate bond
programme in January 2015. The bond attracts interest equivalent to the prime lending rate and the group's corporate bond holders agreed to an extension of the
repayment date from 31 January 2019 to 31 January 2020. The balance owing of R45 million at 31 December 2018 was unchanged from the 2018 financial
year-end, and remains classified as short term. The remaining R11,5 million relates to the group's asset financing. Including the cash on hand of R63,5 million, the group's
net debt:equity ratio deteriorated from 56,5% in June 2018 to 65,3% in December 2018 following additional working capital funding. This is in excess of the group's
internal maximum range of 50%. This is a key management focus area and a debt reduction programme is currently being implemented.
Working capital
Net working capital days of 22,5 days were pleasingly below the target of 35 days due to the improvement in trade receivables and trade payables. While this is a
good improvement compared to December 2017, the days deteriorated from 20.2 days in June 2018 due to the higher inventory levels. The net working capital days
demonstrate management's continuing effort to stay within the maximum range.
The following table compares the current period to the June 2018 and December 2017 positions:
Dec 18 Jun 18 Dec 17
Inventory 33.4 30.6 33.1
Receivables 72.4 89.7 82.5
Payables (83.4) (100.2) (84.8)
NWC days 22.5 20.2 30.8
Inventories on hand were R119,2 million (Dec 2017: R89,2 million) and increased by R16,6 million compared to 30 June 2018. The inventory levels increased at
ICT-Carrier on higher volumes, as well as in Electrical Manufacturers on a strong improvement in volumes during the second quarter.
Trade and other receivables of R219,6 million (Dec 2017: R233,2 million) decreased from R286,2 million at the June 2018 year-end. The age profile of the
debtors' book remained good, with only isolated incidents of delayed payments from two of the larger customers in the ICT-Carrier and ICT-Enterprise entities.
Non-interest-bearing liabilities of R213,1 million (Dec 2017: R207,9 million) decreased from R286,5 million in June 2018 on a reduction in trade and other
payables in line with the seasonality of the business.
The deferred maintenance revenue of R42,7 million (Dec 2017: R57,5 million) was similar to the R38,2 million in June 2018 and relates to prepaid service level
agreements from blue-chip customers, predominantly in ICT-Enterprise. An order of R14,2 million from a large contact centre customer was delayed until the
third quarter.
Statement of cash flows
The statement of cash flows reflects cash generated from operations before working capital changes of R37,8 million compared to R31,4 million in December
2017. This was due to the increase in the operating profit performance. Working capital changes reflect an outflow of R12,9 million (Dec 2017: R5,3 million
outflow). This outflow mainly relates to the increase in inventories, as outlined earlier. Management is focusing on reducing inventory levels in the second half,
where appropriate.
The net interest payment of R10,8 million (Dec 2017: R9,3 million) increased on the higher working capital loan, while income tax payments increased from R4,3 million
to R10,6 million on improved profitability levels in certain subsidiaries. There was no dividend declared in 2018 compared to 1 cent per share in 2017 (Dec 2017:
R2,2 million cash outflow).
Consequently, total cash inflows from operating activities of R3,5 million compares to a R10,3 million inflow recorded in December 2017.
Investing activities experienced an outflow of R25,6 million (Dec 2017: R3,6 million outflow) due to the capital expenditure mentioned under the statement of financial
position, the acquisition-related payments for Reflex of R9,8 million to a trust account held by Jasco's attorneys, and R15,3 million of the RAMM purchase consideration.
The financing activities inflow of R17,6 million (Dec 2017: R1,0 million outflow) relates mainly to the increase in the working capital loan offset by repayments of
asset finance.
The closing cash balance of R63,5 million decreased by R4,4 million from R67,9 million in June 2018 (Dec 2017: R101,0 million).
OPERATIONAL SEGMENTAL REVIEW
As indicated earlier, the group structure was amended to more closely align the businesses with their markets.
ICT-Carrier
ICT-Carrier includes the Webb Industries, Hi-Sites and Carrier Solutions businesses and contributed 35% of group revenue.
Revenue increased by 9,5% to R200,1 million (Dec 2017: R182,7 million), mainly due to an increase in spend in Webb Industries for a network infrastructure roll-out
by a major telecommunications operator. This was somewhat offset by a delay in orders from a large fibre to the home and business customer in Carrier Solutions.
This resulted in operating profit increasing by 29,6% to R32,8 million (Dec 2017: R25,3 million) due to higher revenue and more efficient cost control. Operating
margin improved to 16.4% (Dec 2017: 13.8%).
ICT-Enterprise
ICT-Enterprise includes Enterprise Communications, Reflex Solutions, RAMM Technologies, Broadcast Solutions, Property Technology Management, Networks
and Datavoice (Channel) and contributed 44% of group revenue.
Revenue for the year increased by 7,1% to R256,8 million (Dec 2017: R239,8 million), mainly due to the first six-month contribution of R18,3 million from
RAMM Technologies and a large international project in the Datavoice (Channel) business. However, Reflex experienced lower revenue due to a slowdown in
one-off project revenue from a fibre to the home customer compared to last year. The Broadcast Solutions business also experienced revenue delays, which only
materialised in the third quarter. The annuity service level agreement revenue base was maintained in Enterprise Communications.
This resulted in a 34,5% improvement in operating profit to R24,1 million (Dec 2017: R17,9 million) and a margin of 9.4% (Dec 2017: 7.5%). These increases were
predominantly due to the strong performance from the Channel business and a first-time profit contribution from RAMM Technologies. This was offset by an anticipated
slowdown in performance from Reflex, with its profit down 33% to R9,8 million.
Security and Fire
Security & Fire includes Security Solutions, Jasco Technical Services and Jasco Fire Solutions and contributed 5% of group revenue.
Revenue was flat at R31,2 million (Dec 2017: R32,1 million) following lower than expected volumes in Security due to a continuing slowdown in project spend from
a major banking customer on a reduction in branch footprint. In the third quarter, the Security business secured a significant project for an international data centre
customer for execution in the second half of the year. The Fire business secured a good order book in the first half, with a number of projects only forecast to be
completed in the second half.
Based on flat revenue at lower gross margins, the operating loss increased from R4,0 million in December 2017 to R6,1 million on a similar cost base. The overhead
expenses were reviewed in the third quarter and a restructure was undertaken. This will be concluded by the end of the second half, with benefits to flow through in
the next financial year. This business will be closely monitored for the remainder of F2019 to ensure a turnaround.
Energy
Energy includes Jasco Power and Jasco Renewables and contributed 1% of group revenue.
During the period, revenue declined by 28,4% to R4,7 million (Dec 2017: R6,6 million) following lower than expected volumes in Renewables. The Power
business had a slow start to the year, but experienced an improvement in volumes during the third quarter for uninterruptible power solutions following Eskom's
electricity crisis and regular load shedding.
These two businesses were merged in 2018 to reduce overhead costs, which led to the operating loss improving from a loss of R4,0 million in December 2017 to a loss
of R2,7 million.
During the third quarter, sales capability was strengthened, with a renewed focus on securing additional projects with the group's photo-voltaic solutions specifically
targeting the high electricity tariff market segment. The business will be closely monitored for the remainder of F2019 to ensure a turnaround, given the current
market environment.
Electrical Manufacturers
Electrical Manufacturers contributes 15% of group revenue.
Revenue in Electrical Manufacturers decreased by 14,3% to R89,8 million (Dec 2017: R104,8 million). The decline followed lower volumes from its key customers
due to the technical recession in the South Africa economy in the first quarter, which led to lower demand for white-goods appliances. Although the volumes returned in
the second and third quarters, the lost volumes will not be recouped for the full year.
The operating profit of R1,9 million decreased from R9,5 million on the lower volumes and resultant lower gross margins. Although cost control remains very tight,
the operating margin of 2.2% declined from 9.1% last year.
The continued focus on diversifying the revenue base is delivering good results, with reduced reliance on the group's main customer and an improved margin mix. This
focus will continue and should start improving margins in the second half of F2019.
KEY INTERNAL INITIATIVES
The following key internal initiatives are under way:
Improving operating margins and performance
The focus on higher-margin quality revenue is demonstrated by the pleasing improvement in gross margins in the first six months by 2.1% to 30.9%. The
management team will remain focused on cost control in all areas of the business. Businesses that are underperforming are under review and have been given until
June 2019 to deliver an improvement in performance.
Working capital management
The focus on working capital management in recent years has delivered results, as reflected in the net working capital days. Management continues to concentrate on
this to maintain the improved position achieved in the businesses, with a particular short-term emphasis on inventories.
Reducing debt
The group plans to reduce the corporate bond over the next 12 months from any excess cash generated from operations, subject to the normal working capital
demands of the business. This will ensure sustainability by returning to the internal maximum debt:equity target of 50%, as well as improve tax efficiencies.
Address minority shareholders
The group has reviewed all investments with minority shareholdings, with the intention of buying out these shareholders at the optimal time. At this point the
decision has been taken to purchase the minority stakes in NewTelco and Jasco Fire Solutions. The minority shareholding in Reflex Solutions may be affected by the
outcome of the current arbitration process.
Transformation
Jasco achieved a Level 4 broad-based black economic empowerment (B-BBEE) rating in February 2019 in terms of the new ICT sector codes. Jasco is 57% black
owned and 37% black female-owned.
The transformation of Jasco is receiving ongoing attention to ensure it remains competitive. The following areas will continue to receive focus in F2019/20:
- Skills development and training of employees to retain key technically skilled and scare resources, which is in line with succession planning initiatives
- Employment equity - achieving targets at all management levels
- Continue with Employer of Choice certification to differentiate the group
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 resulted in a more challenging trading environment. The risk of a credit ratings downgrade of South Africa's sovereign debt by the major credit ratings agencies is
high and the forthcoming general elections is contributing to market uncertainty.
Additionally, in a fast-changing technology environment, the business context is changing at an increasing pace. Customer requirements are becoming more difficult
to predict, with increased market uncertainty as customers face disruptive new business models due to rapid technology advancements in areas such as Internet of
Things (IoT), big data analytics, artificial intelligence (AI) and block chain.
To counter this uncertainty, 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;
- Reduce the financial gearing below the internal target of 50% from the cash generated by Jasco's operations;
- Review the capital structure in consultation with the major shareholders to unlock potential future growth opportunities; and
- Pursue revenue growth in the following areas: Smart Enterprises; Open access networks; Fifth-generation (5G) networks and IOT Analytic by adding new
products and services to Jasco's portfolio, with specific emphasis on Managed Solutions as a fast-growing and higher-margin business area.
LITIGATION, CLAIMS AND OTHER CONTINGENCIES
The dispute with the minority shareholders of Reflex Solutions Proprietary Limited is subject to an expedited arbitration process.
There are no other material matters to disclose.
SUBSEQUENT EVENTS
Other than the ongoing Reflex arbitration process, there were no material subsequent events.
CHANGES TO THE BOARD
The board welcomes Mr Danie du Plessis as the new Chairman of the Audit and Risk Committee.
For and on behalf of the board
Dr ATM Mokgokong M Janse van Vuuren WA Prinsloo
(Non-executive chairman) (Chief executive officer) (Chief financial officer)
12 April 2019
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 2018, 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.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair values of financial instruments are determined using appropriate valuation techniques, including recent market transaction and other valuation models, have
been applied and 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 25
- Financial liabilities at fair value through profit or loss 344
ANTICIPATED MAJOR ACCOUNTING DEVELOPMENTS
The following standards and interpretation or amendments became effective for the first time in the current period and had no impact on the group: Amendments to IFRS
2 Share-based payments and IFRIC 22 Foreign currency transactions and advance consideration.
IFRS 16 Leases is effective on or after 1 January 2019. The standard introduces a single lessee accounting model and requires a lessee to recognise assets and
liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value.
IFRS 9 Financial instrument and IFRS 15 Revenue from contracts with customers became effective on 1 January 2018. The effect of these are as follows:
IFRS 9 FINANCIAL INSTRUMENTS
The group has retrospectively implemented IFRS 9 as of 1 July 2018 without restating comparative figures.
IFRS 9 addresses the classification, measurements and derecognition of financial assets and financial liabilities and a new impairment model for financial assets.
Majority of financial instruments held by group includes trade and other receivables, trade and other payables and interest-bearing liabilities and are measured at
amortised cost. Under IFRS 9, trade and other receivables continue to be measured at amortised costs as they are held to collect contractual cash flows consisting of
principal and interest.
Jasco provides for doubtful debts on a limited basis. In the main debtors are mid to large size businesses (mostly blue chip corporates) and are lower risk in nature. In
almost all cases the risk is one of quantum and timing rather than default.
The group has assessed the impact of the adoption of IFRS 9 and concluded that there was no significant impact for the group.
IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS
The group has retrospectively implemented IFRS 15 as of 1 July 2018 without restating comparative figures.
IFRS 15 establishes a single, comprehensive framework detailing the principles to apply when accounting for revenue arising from contracts with customers and
replaces all existing revenue standards.
The standard establishes a five-step model that requires revenue to be recognised at an amount that reflects the consideration to which the company expects to be entitled
in exchange for transferring goods or services to customers.
The group has assessed the impact of the adoption of IFRS 15 and concluded that there was no significant impact for the group as the current revenue recognition
policy is based on stage of completion method which is consistent to the output method under IFRS 15.
SUMMARISED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited
Unaudited Restated Audited
December December June
2018 2017 2018
(R'000) 6 months 6 months % change 12 months
Revenue 576 735 555 540 3,8% 1 147 083
Operating profit before interest and taxation 25 961 17 834 45,6% 40 393
Interest received 656 2 155 (69,6%) 4 285
Interest paid (11 476) (11 449) 0,2% (24 451)
Equity accounted share of loss from associate (750) (2 525) (4 091)
Profit before taxation 14 391 6 015 139,2% 16 136
Taxation (6 812) (6 156) 10,7% (12 754)
Profit for the period/year 7 579 (141) 5475,2% 3 382
Other comprehensive income - (380) - (351)
Total comprehensive income for the period/
year 7 579 (521) 1554,7% 3 031
Tax rate 47,3% 102,3% 79,0%
Profit attributable to:
- minority shareholders 4 704 6 436 (26,9%) 11 047
- equityholders of the parent 2 875 (6 578) 143,7% (7 665)
Profit for the period/year 7 579 (142) 5437,3% 3 382
Total comprehensive income attributable to:
- minority shareholders 4 704 6 436 (26,9%) 11 047
- equityholders of the parent 2 875 (6 958) 141,3% (8 016)
Total comprehensive income for the period/
year 7 579 (522) 1551,9% 3 031
Reconciliation of headline earnings
Net earnings attributable to equityholders of
the parent 2 875 (6 578) 143,7% (7 665)
Headline earnings adjustments 136 4 566 97,0% 4 658
- profit on disposal of subsidiary/
business unit - 206 206
- Impairment of goodwill - 4 517 4 517
- net after-tax loss/(profit) on disposal of
fixed assets 136 (157) (65)
Headline earnings 3 011 (2 012) 249,7% (3 007)
Number of shares in issue ('000) 229 319 229 319 0,0% 229 319
Treasury shares ('000) 659 2 542 250
Weighted average number of shares on which
earnings per share is calculated ('000) 228 660 226 777 0,8% 229 069
Dilutive shares
- dilutive shares and options ('000) - 172 373
Weighted average number of shares on which
diluted earnings per share is calculated ('000) 228 660 226 949 0,8% 229 442
Ratio analysis
Attributable earnings (R'000) 2 875 (6 578) 143,7% (7 665)
EBITDA (R'000) 44 221 31 567 40,1% 75 652
Earnings per share (cents) 1,3 (2,9) 143,3% (3,4)
Diluted earnings per share (cents) 1,3 (2,9) 143,4% (3,3)
Headline earnings per share (cents) 1,3 (0,9) 248,4% (1,3)
Diluted headline earnings per share (cents) 1,3 (0,9) 248,5% (1,3)
Net asset value per share (cents) 78,6 77,3 1,6% 77,4
Net tangible asset value per share (cents) 12,6 26,6 (52,6%) 10,0
Debt:Equity (%) 95,4 94,6 0,8% 89,7
Debt:Equity (net of Bank balances) (%) 65,3 43,1 51,5% 56,5
Interest cover (times) 2,4 1,9 25,7% 2,2
EBITDA interest cover (times) 4,1 3,4 20,3% 3,8
PBIT % of Revenue (%) 4,5% 3,2% 3,5%
SUMMARISED SEGMENTAL REPORTS
31 December 2018 31 December 2017 30 June 2018
6 months 6 months 12 months
Unaudited Unaudited (restated) Audited
Income and expenses
Operating Operating Operating
(R'000) Revenue profit/(loss) Revenue profit/(loss) Revenue profit/(loss)
ICT - Carrier 200 073 32 813 182 712 25 302 349 114 53 094
ICT - Enterprise 256 793 24 111 239 821 17 924 541 364 47 127
Security and Fire 31 208 (6 055) 32 102 (3 975) 65 571 (11 522)
Energy 4 737 (2 669) 6 619 (3 950) 11 569 (10 290)
Electrical Manufacturers 89 774 1 959 104 793 9 533 203 530 13 158
Sub-total operating divisions 582 585 50 159 566 047 44 834 1 171 148 91 567
Other - (20 856) - (20 225) - (42 343)
Adjustments (5 850) (3 342) (10 507) (6 775) (24 065) (8 831)
Total 576 735 25 961 555 540 17 834 1 147 083 40 393
Financial position
(R'000) Assets Liabilities Assets Liabilities Assets Liabilities
ICT
ICT - Carrier 115 941 30 750 120 209 35 651 140 887 49 253
ICT
ICT - Enterprise 173 867 97 403 157 429 93 834 201 782 134 312
Security and Fire 35 941 16 567 21 624 11 325 31 700 27 430
Energy 4 888 358 9 530 1 309 6 587 1 856
Electrical Manufacturers 82 116 9 020 85 335 11 811 94 994 22 877
Sub-total operating divisions 412 753 154 098 394 127 153 930 475 950 235 728
Other 72 111 240 747 59 878 187 871 70 017 237 446
Adjustments 201 186 79 986 206 780 122 890 180 081 48 655
Total 686 050 474 831 660 785 464 691 726 048 521 829
SUMMARISED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited
Unaudited Restated Audited
December December June
(R'000) 2018 2017 2018
ASSETS
Non-current assets 265 744 222 734 258 819
Plant and equipment 76 247 78 050 79 596
Intangible assets 150 808 115 050 154 509
Investment in associates 3 662 10 075 4 412
Deferred tax asset 23 680 18 809 19 725
Other non-current assets 11 347 750 577
Current assets 420 306 438 051 467 229
Inventories 119 249 89 214 102 642
Trade and other receivables 219 574 233 181 286 197
Short-term portion of other non-current assets 4 474 6 157 995
Taxation refundable 13 552 8 500 9 506
Cash and cash equivalents 63 457 100 999 67 889
Total assets 686 050 660 785 726 048
EQUITY AND LIABILITIES
Share capital and reserves 211 219 196 094 204 219
Non-current liabilities 146 745 188 651 139 440
Interest-bearing liabilities 137 116 181 544 128 549
Deferred maintenance revenue - 1 440 518
Deferred tax liability 9 629 5 667 10 373
Current liabilities 328 086 276 040 382 389
Short-term portion of interest-bearing liabilities 64 334 4 043 54 701
Non-interest bearing liabilities 213 072 207 877 286 459
Deferred maintenance revenue 42 709 57 530 38 237
Taxation liability 7 971 6 590 2 992
Total equity and liabilities 686 050 660 785 726 048
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited
Unaudited Restated Audited
December December June
2018 2017 2018
(R'000) 6 months 6 months 12 months
Attributable to equity holders of the parent
Opening balance 177 382 184 580 184 580
Treasury shares - Share Incentive Trust (524) - 2 185
Share-based payment reserve (55) - 1 820
Utilisation of equity settled share-based payment reserve - - (955)
Total comprehensive income 2 875 (6 958) (8 016)
- Profit for the period/year 2 875 (6 578) (7 665)
- Other comprehensive income - (380) (351)
Dividends declared (2 234) (2 232)
Closing balance 179 678 175 388 177 382
Non-controlling interests
Opening balance 26 837 17 050 17 050
Transactions with non-controlling shareholder - - (758)
Acquisition of companies - (1 457) 8 496
Total comprehensive income 4 704 6 436 11 047
- Profit for the period/year 4 704 6 436 11 047
- Other comprehensive income - - -
Dividend paid to non-controlling shareholder - (1 323) (8 998)
Closing balance 31 541 20 706 26 837
Total equity 211 219 196 094 204 219
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
Unaudited Restated Audited
December December June
2018 2017 2018
(R'000) 6 months 6 months 12 months
Cash generated from operations before working capital
changes 37 797 31 427 94 375
Working capital changes (12 857) (5 258) (39 207)
Cash generated from operations 24 940 26 169 55 168
Net financing costs (10 820) (9 294) (13 925)
Net taxation paid (10 578) (4 326) (18 718)
Dividends paid - (2 234) (5 907)
Cash flow from operating activities 3 542 10 315 16 618
Cash flow from investing activities (25 595) (3 575) (43 971)
Cash flow from financing activities 17 621 (974) (932)
(Decrease)/increase in cash resources (4 432) 5 766 (28 285)
Directors and Secretary: Dr ATM Mokgokong (Chairman), MJ Madungandaba (Deputy Chairman), D du Plessis*, S Bawa*,
P Radebe*, T Zondi*, AMF da Silva (Non-executives), M Janse van Vuuren (CEO), WA Prinsloo (CFO), T Petje, S Samuels
(Executives), N Modisakeng (Company Secretary) *Independent
Registered office: Jasco Park, c/o 2nd Street and Alexandra Avenue, Midrand, 1685
Transfer secretaries: Link Market Services SA Proprietary 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
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