{"id":31303,"date":"2013-02-07T09:03:03","date_gmt":"2013-02-07T07:03:03","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=31303"},"modified":"2013-02-07T10:45:02","modified_gmt":"2013-02-07T08:45:02","slug":"jasco-sees-profit-fall-amid-restructure","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/31303\/jasco-sees-profit-fall-amid-restructure\/","title":{"rendered":"Jasco sees profits fall amid restructure"},"content":{"rendered":"

While Jasco Electronic Holdings<\/a> reported an 11.8% rise in revenue to R552.1 million for the six months ended December 2012\u201a its operating profit before interest and tax declined 7.6% to R19 million as the group proceeds with its re-positioning\u00a0programme.<\/p>\n

Jasco recorded a 27.1% decline in diluted headline earnrings per share to 5.0 cents, from 6.9 cents in 2011.<\/p>\n

The group said its core businesses improved their performance; however, adverse market conditions severely impacted the performance of Lighting Structures and Telecom Structures, as well as the groups associate, M-TEC<\/a>, which reduced overall group profitability.<\/p>\n

With effect from 1 December 2012, Lighting Structures was sold to Jasco’s international partner in this business for R2.1 million. Telecom Structures was restructured and the investment in M-TEC is under review, it said.<\/p>\n

The group’s operating profit decreased by 8% to R19 million, and was impacted by two once-off events, namely an R8.8 million profit on the disposal of its head office property, and a R4.4 million loss on the disposal of Lighting Structures.<\/p>\n

ICT<\/strong><\/p>\n

ICT Carrier Solutions, which represents 48% of group consolidated revenue\u00a0increased earnings by 25% to R292.4 million.<\/p>\n

Telecoms Structures experienced significant market changes which included site sharing by major mobile operators and a slowdown in infrastructure roll-out. The business model was changed to accommodate these impacts. The restructure was completed during the period, Jasco said.<\/p>\n

ICT Carrier won orders from five new blue-chip groups. Consolidated operating profit of R20.9 million was however, flat, largely due to investment in the voice and data annuity connectivity business.<\/p>\n

Restructure<\/strong><\/p>\n

The Jasco group is halfway through its three-year repositioning programme. Phase one\u201a the re-grouping of Jasco into three focused verticals\u201a is complete\u201a with the benefits of operating as an integrated group starting to flow through.<\/p>\n

Phase two\u201a which focuses on increasing customer centricity\u201a is currently rolling out. The group\u2019s sales initiatives have already improved through a focused performance and delivery culture and the cross-selling initiatives delivering early successes.<\/p>\n

Looking ahead\u201a the group said it continues to strive for increased market share in the ICT Solutions vertical\u201a with a focus on new customer acquisition and an increased share of wallet with existing customers.<\/p>\n

More on Jasco<\/h3>\n

Jasco expects earnings dip<\/strong><\/a><\/p>\n

Jasco to improve Cell C network?<\/strong><\/a><\/p>\n

Jasco eyes bigger play in SADC region<\/strong><\/a><\/p>\n

Jasco lifts full-year revenue by 28%<\/strong><\/a><\/p>\n

Jasco concludes Midrand HQ disposal<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Jasco has reported a 7.6% drop in operating profit before interest and tax to R19 million as the group proceeds with its re-positioning programme.<\/p>\n","protected":false},"author":10,"featured_media":31325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[26,5137,893,5136],"class_list":["post-31303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-headline","tag-ict-carrier-solutions","tag-jasco","tag-m-tec"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=31303"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31303\/revisions"}],"predecessor-version":[{"id":31326,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31303\/revisions\/31326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/31325"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=31303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=31303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=31303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}