Jasco warns of lower revenue under current economic cycle in SA
Listed ICT group Jasco has advised that it expects revenue for the year ended June 2017 to decline by between 1% and 5%, with operating profit to remain flat.
“The group operated in continued adverse trading conditions in South Africa, with low economic growth and a volatile rand. These market conditions particularly impacted the second half of the financial year,” Jasco said.
It cited a number of once-off items as having a particularly negative impact on earnings and headline earnings.
These included:
1. Exiting unprofitable Security customer contracts and the resultant retrenchments
2. Investments in the group’s international operations in the newly-established Middle East and further business development costs in East Africa
3. Transaction costs on two acquisitions, with a particular impact from the unsuccessful Cross Fire acquisition
4. A material tax impact due to unutilised foreign tax credits and non-deductible acquisition costs.
These costs, as well as the tough market conditions, it said, resulted in earnings per share for the year ended June 2017 to be between 38% and 48% lower (between 3.3 cents and 3.9 cents per share) compared to 6.3 cents per share for the previous corresponding period.
It said that it expects headline earnings per share to be between 56% and 66% lower (between 2.1 cents and 2.8 cents per share) compared to the 6.3 cents per share for the previous corresponding period.
Jasco said it expects to publish its results on 13 September 2017.
Loading ...