Listed ICT group Jasco has reported an 8% increase in revenue for the year ended 30 June 2015, to R1.1 billion, but impairments eat away at operational profit.<\/p>\n
However, due to impairments from the disposal of its presence in M-TEC, the company posted an overall operational loss of R72.5 million, down from an operating profit of R17.6 million the year before.<\/p>\n
According to Jasco, however, the good news is that 2015 marks the end of the company’s three-year restructuring plan, which included the exit from M-TEC, which dragged on the group’s past results.<\/p>\n
“We look forward to a period post M-TEC where the management can give its undivided attention on Jasco’s core business,” it said.<\/p>\n
To indicate “pure” operating performance, the group outlined adjusted operating profit, which excludes impairments and adjustments.<\/p>\n
Adjusted operating profit improved by 9% from R26,3 million in 2014 to R28,6 million, mainly due to the higher sales volumes and increase in gross margins from 28.4% to 29.1%.<\/p>\n
Headline earnings of R5,1 million increased by 429% (2014: R1,0 million) and headline earnings per share (HEPS) was up 324% to 2,4 cents per share (2014: 0,6 cents per share).<\/p>\n
According to Jasco, the ICT industry is expected to continue to consolidate in both operator and supplier environments.<\/p>\n
Despite this, the group expects an increase in demand for services, which will counter any decreasing margins.<\/p>\n
The group also sees further growth in its intelligent technologies unit, its newest business – while its business enterprise unit is on “the watch list” to ensure a return to profitability.<\/p>\n
To counter the challenging economic and market conditions Jasco said it will continue to focus on its exit from M-TEC and keep with its expansion into Africa.<\/p>\n
Jasco returns to profitability<\/a><\/strong><\/p>\n Restructuring costs weigh on Jasco<\/strong><\/a><\/p>\n