Headline earnings per share at technology group Jasco slumped by 26,9% in the six months ended 31 December 2012 due to “adverse market conditions” that “severely impacted” some of its operating businesses.
Although group revenue rose by 11,8% to R552,1m, and the core businesses improved their performance, a tough environment hit the Lighting Structures and Telecoms Structures businesses, as well as group associate M-Tec, reducing overall profitability.
Jasco’s share of income from M-Tec was substantially lower than a year ago due to project delays from a major customer. Its 51% share of profit was down by 84% to R0,8m from R4,9m in the same six-month period in 2011.
Lighting Structures has since been sold for R2,1m. “Telecom Structures was restructured and the investment in M-Tec is under review,” Jasco says.
The poor performance by these businesses led to a 9% decline in group operating profit to R19m. Operating profit was also affected by two once-off events: an R8,8m profit on the disposal of the group’s head office property and a R4,4m loss on the disposal of Lighting Structures. Profit attributable to ordinary shareholders was up by 57% to R14,2m.
Jasco says it is halfway through a three-year reposition programme. Led by CEO Pete da Silva, phase one, now completed, involved regrouping into three areas of focus.
Phase two, improving the focus on customers, is now underway. “The group’s sales initiatives have already improved through a focused performance and delivery culture and the cross-selling initiatives delivering early successes,” it says.
“Superfluous legal entities will continue to be closed and deregistered to further simplify the group structure and to increase the planned statutory benefits.”
It says it continues to focus in improving its market share in the information and communications technology space and. Investment in the annuity voice and data connectivity business is also expected to continue, it adds.
No dividend was declared for the six-month period. — (c) 2013 NewsCentral Media