Jasco H1 HEPS 6.9c vs 3.5c

Listed technology group Jasco Electronics (JSC) on Monday announced a 96% rise in headline earnings per share (HEPS) to 6.9 cents per share for the six months ended December 2011, from 3.5 cents previously.

Earnings per share (EPS) improved 130% to 6.4 cents per share, from 2.8 cents in 2010.

Group revenue increased by 55% to R493.9 million while group operating profit increased by 30% to R20.6 million. The increase in group operating profit was mainly due to the improvement in the group’s largest consolidated contributor, the ICT Solutions vertical, as well as lower once-off costs, down to R1.2 million from R4.2 million in the comparative period, Jasco said.

Looking ahead, Jasco said that further cost savings are set to be extracted from the business, such as the benefits from rightsizing and the impact of merged businesses and lower compliance and other costs.

The group said its bolt-on acquisition plan is on schedule, without sacrificing focus on organic growth and addressing problem areas in the business.

“In the ICT Solutions vertical, the group will continue to focus on growing market share in the mature Carrier space. The vertical has already experienced increased orders from current and new clients due to a more focused sales offering.

“In the Enterprise business, the benefits of a lower cost base due to rightsizing in a tough market will flow through in the second half, with the aim to extract value from those customers where spend is taking place.

“The high level of annuity income in Enterprise Communications through ongoing service level agreements will continue to provide some protection in the medium term,” Jasco said.

The group said that its second vertical, Industry Solutions, also has an established annuity income base to ensure stability. The focus in the near future will be on completing the group’s entry into the fire solutions market and to expand the Jasco offering nationally.

“The entry into the power optimisation market through the acquisition of FerroTech will complement Jasco’s offering, while Industry Solutions will continue to expand its offering in building management,” Jasco said.

In line with the group’s annual policy, the board did not declare an interim dividend.

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Jasco H1 HEPS 6.9c vs 3.5c