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Jasco predicts HEPS plunge

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 04 Sept 2017
Jasco CEO Pete da Silva.
Jasco CEO Pete da Silva.

Jasco Electronics has warned shareholders that headline earnings per share (HEPS) for the year ended 30 June are expect to drop significantly due to tough market conditions and a number of once-off costs.

The group says in a trading statement that it expects HEPS to be between 56% and 66% lower than a year ago, coming in between 2.1cps and 2.8cps compared to 6.3cps reported in the previous corresponding period.

Earnings per share (EPS) will also likely drop by between 38% and 48%, falling between 3.3cps and 3.9cps compared to 6.3cps the previous year.

The Jasco group is a smart technology and solutions partner which provides a range offerings for carriers and enterprises across the telecoms, communications, IT infrastructure, security and fire sectors.

"During the year ended 30 June, the group operated in continued adverse trading conditions in South Africa, with low economic growth and a volatile rand. These market conditions particularly impacted the second half of the financial year," the group says in the statement.

Based on these conditions, revenue is expected to be between 1% and 5% lower and operating profit maintained at the same level as the previous corresponding period.

A number of once-off items had a particularly negative impact on earnings and headline earnings. These included: exiting unprofitable security customer contracts and the resultant retrenchments; investments in the group's international operations in the newly-established Middle East and further business development costs in East Africa; transaction costs on two acquisitions, with a particular impact from the unsuccessful Cross Fire acquisition; and a material tax impact due to unutilised foreign tax credits and non-deductible acquisition costs.

The group will report its audited annual results for the year ended 30 June on 13 September.

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