Jasco close to head-office disposal

JSE-listed technology group, Jasco Electronics Holdings says it is close to the disposal of its head-office property in Midrand, Gauteng.

‘Shareholders are advised that the company is in advanced stages of negotiations regarding the proposed disposal of the Midrand Property, which if successfully concluded may have a material effect on the price of the company’s securities,” it said in a statement on Friday (22 June).

In February, Jasco highlighted the benefits of a restructuring programme along with the integration of ICT group, Spescom for a 55% rise in H1 revenue.

CEO of Jasco, Pete da Silva told Moneyweb: “We’ve taken our layers of management. We’ve taken people out, like big time. … If a business is not sustainable at a certain level we’ve merged it into others, and we’ve taken out CEO levels, CFO levels, and just in this lot here I think it was about a R1.2 million cost. And that’s going to bear fruit going forward. When we bought Spescom we landed up with a building of 6,000 square metres in the heart of Midrand, which 30% utilised.

The group reported headline earnings per share of 6.9 cents for the six months ended December 2011, from 3.5 cents previously.

Revenue climbed to R493.9 million, while operating profit increased 30% to R20.6 million, on the back of an improvement in the group’s largest contributor, the ICT Solutions vertical.

“I am very pleased with these results. Its clearly down to the successful integration of Jasco and Spescom,” said CEO Pete da Silva at a presentation at the JSE in Sandton, before stressing the need to diversify.

“We are primarily an ICT group. We’ve got diversify in terms of our products and services,” he said alluding to opportunities in its energy solutions and power optimisation arms.”

Da Silva said Jasco would concentrate on its co-location and data centre operations within its carrier business, with an aim to attract new customers while the same focus would apply for M-TEC Telecommunications.

The CEO added that Jasco would also target growth for its VOIP business.

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Jasco close to head-office disposal