Restructuring costs weigh on Jasco

·18 Feb 2014

Listed ICT firm Jasco Electronics Holdings on Tuesday (18 February), reported a 3.9% drop in revenue for the six months ended December 2013, to R530.4 million, citing restructuring costs.

Operating profit before interest and taxation was 32.8% lower at R12.8 million.

The once-off impacts on operating profit consisted of:

H1 2014: R8.4 million restructuring costs;
H1 2013: R1.8 million net write-offs consisting of:

R8.8 million profit from the disposal of group’s head office property;
R4.5 million loss on disposal of Lighting Structures;
R6.0 million restructuring costs.

“As a consequence of once-off impacts and restructuring costs in the prior year and this period, earnings per share (EPS) was down 51% to 4.9 cents per share,” Jasco said.

Headline earnings per share, however, increased by 6% to 5.3 cents per share, from 5 cents per share in 2012.

Jasco noted that it is in the final year of its three-year restructuring programm, with costs incurred to date set to continue until the end of H2 F2014.

The group underwent a rights offer, which was concluded on 21 January 2014 and raised a net R55 million in funding.

Looking ahead, Jasco said its joint ventures are planned to further assist with growth, particularly in the areas of international voice and data connectivity and IT solutions.

“ICT Solutions will also continue to build on its African presence by focusing on expanding the Enterprise footprint and building on its success achieved in Namibia and Zimbabwe.”

The group said it withdrew its cautionary announcement relating to the sale of M-TEC on 20 December 2013, due to protracted delays in the negotiations following unexpected shareholder and management changes at Taihan.

“Jasco’s strategy remains to exit this business,” it said.