Jasco Electronics Holdings CEO Stuart Robertson is to step down later this year to take up a post at the group`s empowerment partner, CIH Group.
Jasco says Robertson completed his mandate at Jasco, which was to transform the group into an empowered entity with a sustainable growth platform.
"In line with Jasco`s commitment to transformation, the group intends to appoint a suitably qualified CEO in due course," the group says. "Pending such an appointment and smooth handover, Dr Robertson will continue working with our MD, Joe Madungandaba, and the COO, Martin Lotz. A new financial director will be appointed shortly."
The announcement coincides with the release of Jasco`s results for the year to 28 February, which indicate that the group has sustained the turnaround in its profitability.
Net attributable income for the year rose to R6.24 million, from R1.22 million the previous year. Revenue was down from R258.54 million to R248.83 million, although earnings before interest, tax, depreciation and amortisation rose from R13.22 million to R24.27 million.
An R11.86 million operating profit compares with a previous R0.14 million.
Earnings per share rose from 1.8c to 9c while headline earnings per share fell from 33.6c to 16.3c. The company has in the past emphasised what it calls "comparative" headline earnings per share, as it excludes the effects of what it sees as an anomaly.
A net liability of R17.1 million to cover the Khululeka Telecommunications overdraft was reversed when Jasco took over the overdraft. At the same time, the closure of Khululeka`s Alro operation resulted in an impairment of goodwill, also R17.1 million. Khululeka was acquired with effect from 1 March 2003.
In terms of generally accepted accounting practice, the reversal of the net liability forms part of headline earnings, whereas the second transaction does not. Jasco believes the two are related.
In these terms, "comparative" headline earnings per share rose from 4.2c to 24c.
"Jasco`s consolidation phase and restructuring is now complete," says Robertson. "Loss-makers have been turned around, cash flow significantly improved, debt eradicated and the balance sheet strengthened."
The group, which says it is confident of improved results in the next year, has declared a dividend of 6c a share, to be paid on 30 May.
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