Preview: Jasco H1 HEPS seen 80% – 100% higher
Shares in listed technology group Jasco Electronics (JSC) have gained momentum following a recent contract award and acquisition activity ahead of its H1 earnings report, due Monday, February 6.
Jasco shares surged as much as 12% on the JSE after it advised in January that it expects headline earnings per share (HEPS) for the six months ended December 2011, to be between 80% and 100% higher than previously.
The group expects HEPS of between 6.3 cents and 7.0 cents per share.
The company reported revenue of R317.9 million for the six months ended December 2010, and a pre-tax profit of R15.9 million.
On Monday last week, the firm said it has entered into an agreement to acquire 100% of the ordinary shares in Ferro Resistant Technologies from the founding shareholders and senior management for R13 million.
FerroTech manufactures, supplies, designs, installs and maintains power and energy solutions. Its offering includes voltage stabilisers; uninterrupted power supplies (UPS); automatic voltage regulators; inverters; surge and lightning protection; and transformers.
Jasco said that the acquisition is in line with its stated strategy of expanding the group through acquisitions of companies that deliver specific solutions, skill-sets and expertise that complement its existing portfolio.
The group also recently announced that its subsidiary, NewTelco SA, signed a contract with Alink Telecom for the use of its carrier neutral co-location hub.
Alink is a large ISP based in Ivory Coast with operations spanning West Africa across countries including Cameroon, Ghana, Tanzania, Burkina Faso, Liberia, Togo and Niger.
“Alink is a significant entity in the West African market, one of the areas we have targeted for growth, and as such is a highly strategic customer for Jasco.
“The co-location centre itself is a fairly new offering, having been established in 2010, and this agreement with Alink will help us to grow traffic into South Africa from a variety of territories,” said Eckart Zollner, business development manager at Jasco ICT Solutions.
By close on Thursday, Jasco shares stood at R1.11 on the local exchange.
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