SA technology firm Jasco Electronics released its interim results for the six months to December 2011 on Monday, showing a structural shake-up, coupled with the acquisition of Spescom, are paying off for the company.
Last year, the JSE-listed company restructured, consolidating its divisions under three broad areas: information and communications technology (ICT) solutions; industry solutions; and energy solutions.
For the six-month period, group revenue increased by 55% to R493,9m due, in part, to the acquisition of telecommunications specialist Spescom. Operating profit increased by 30% from a year ago to R20,6m, while headline earnings per share increased by 96% to 6,9c.
Jasco’s net short-term borrowings increased from R16,9m at the start of the period to R38,4m at its end and cash generated from operations continued to be higher than operating profit.
The ICT solutions division, which includes the telecoms and IT businesses of Jasco and Spescom, along with the telecoms arm of associate M-Tec, saw revenue increase by 50% to R286,9m. The division accounted for two thirds of group revenue.
Aggregated operating profit, which includes M-Tec’s contribution, was R23,1m — an improvement of 80% on the R12,9m reported in 2010. The division’s operating margin improved from 6,8% to 8,1%.
Excluding M-Tec, operating profit was up by 49% to R21,8m, with the operating margin down to 9,6% from 10,4%.
Aside from ongoing work with SA mobile operators, Jasco has signed a deal with MultiChoice and intends to become more involved in the digital broadcast industry. It also wants to continue supplying security and access services, voice over Internet protocol services, and intends moving into building automation, or what it calls “building management”.
Jasco share price was trading up 3,6% in midmorning trade on Monday. The counter has fallen 15,2% in the past year. — Staff reporter, TechCentral
- Image: Iman Mosaad/Flickr
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