Jasco swings to full-year loss
Despite breaching the R1 billion revenue mark in 2013, listed ICT player, Jasco Electronics Holdings has on Wednesday (18 September) reported a pre-tax loss of R93.5 million for the year ended June 2013.
The group’s revenue increased by 16% to R1.15 billion (2012: R990 million), while operating profit before interest and taxation including these once-off impacts decreased significantly from a prior profit of R31.2 million in 2012.
Headline earnings per share was down 98% to 0.3 cents per share, from 16.8 cents per share in 2012.
Jasco pointed out that it is at the end of year two of its three-year restructuring programme.
“The group has made good progress, with the current year’s focus being on corrective action. This resulted in decisive action in the underperforming areas of the business, which impacted the results,” it said.
Jasco Profit-Loss
The corrective action taken resulted in the strategic exit from certain manufacturing businesses:
- Lighting Structures was sold to LeBlanc International in December 2012;
- Telecommunications Structures was sold to LeBlanc International in 2013;
- M-TEC is currently “held-for-sale”;
- Jasco’s 50.5% investment in Telecommunications Structures was also classified as an asset “held-for-sale” and was sold post year end.
In August, Jasco noted that it was in talks with Korean shareholder, Taihan Electric Wire Company, over the sale of its 51% share in M-TEC.
Looking ahead, Jasco said its board is considering various capital raising options which may include a rights issue ranging between R30 million to R60 million planned for the first half of F2014.
It added that in the first half of 2014, further restructuring costs will impact results, with the second half to show an improvement.
“The full benefits of the three-year restructuring programme will be seen from 2015,” Jasco said.
On the positive side, Jasco said that major milestones achieved during the first two years of the restructuring programme have included:
- The consolidation of five business units;
- The removal of several management positions and one management level;
- The de-registration or sale of 13 legal entities;
- Creating a single Jasco brand from numerous disjointed brands;
- Growing the order intake from R800 million in 2011 to R1.2 billion in 2013;
- Expanding into 11 new product and market segments;
- Reducing customer dependency, with no customer being more than 8% of group revenue (2011: 10%).
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