Jasco determined to keep JSE listing

Jasco Electronics is paying its shareholders a dividend and says it will retain its JSE listing despite the high costs involved.

The group declared a dividend of 5c a share after its results for the six months to end-August continued to show the benefits of a turnaround strategy implemented in the previous financial year.

"The turnaround strategy implemented in our telecoms and manufacturing divisions has been completed and these two divisions performed exceptionally well in both the local and export markets such as Nigeria, Mozambique, Botswana and Kenya," says CEO Stuart Robertson.

The divisions also export products to Europe and are exploring opportunities in the US.

"The turnaround strategy in the image division is still ongoing and performance in this division is expected to improve substantially over the next 12 months," Robertson says.

Jasco is still looking for ways to dispose of Technology Junction, the only distribution business earmarked for sale but not yet sold.

Robertson says the group wants to exit this business on the most beneficial basis possible, also having regard to the interests of employees.

He says all the operating divisions are correctly structured and poised to take full advantage of opportunities in their focus.

While Jasco expects earnings growth to continue, the rate of growth will slow as the base rises.

Robertson says the group has noted the spate of delistings from the JSE, particularly by small-cap companies, and the board considered whether the "considerable" costs justified a continued listing.

"It is our considered view that the long-term benefits far outweigh the costs and we thus confirm our intention to remain listed, which will also allow current shareholders to benefit from our anticipated return to sustainable growth and returns."