Jasco Electronics Holdings moved back into the black in the year to 28 February, with all its divisions performing in line with, or better than, forecasts.
CEO Stuart Robertson says the turnaround is thanks to the group`s strategy to exit business with high turnover and low margins, and deploy resources on developing higher margin core businesses.
<B>Salient figures</B>
Jasco Electronics Holdings results for the year to 28 February 2002
Previous year`s figures in parentheses:
Revenue: R276.15m (R417.38m)
Operating profit: R13.34m (-R19.35m)
Net profit after tax: R11.57m (-R117.47m)
Net attributable profit: R11.37m (-R118.49m)
HEPS: 27.6c (-43.2c)
NAV per share: 61.7c (49.6c)
NTAV per share: 35.9c (8.9c)
Current assets: R126.96m (R153.04m)
Cash on hand: R39.62m (R19.98m)
Current liabilities: R121.19m (R165.45m)
Cash generated from operations: R18.27m (-R20.85m)
The weaker rand also led to higher than expected export earnings.
Gearing fell to 51% from 225% the previous year. Robertson says that subsequent to the year-end, the earn-out conditions relating to the sale of On Line Distribution were "substantially" met.
Jasco received a further net cash payment of R7.8 million which has been used to reduce interest-bearing debt.
This would have reduced gearing to 25% had it been received before the year-end.
Robertson says while a further R2.9 million may still be due, the purchasers are disputing this and talks are underway.
Commenting on the group`s performance for the year, he says that although overall turnover fell 34% due to disposals, turnover from continuing operations rose 28%, reflecting the underlying strength of the core businesses.
"The turnaround strategy has been successfully completed. All divisions are correctly structured and poised to take advantage of opportunities in their focus," Robertson adds.
The manufacturing, telecoms and voice divisions are expected to continue to benefit from export opportunities established during the year, and the image division is touted to thrive as the public and private sectors spend more on security.
"Telecoms, telesciences and voice divisions are expected to benefit from the establishment of a second network operation and enhancements of the mobile networks as well as Telkom`s upgrading of its network."
The group expects to achieve operating growth in all its divisions, although it cautions that the extent of this may be influenced by currency fluctuations.
"We ended the year with full order books and with prospects for a number of tenders looking promising," Robertson says. "Africa remains the continent with the lowest tele-density, and we are well poised to assist telecom operators when they roll-out their networks to address this unacceptable disparity."
The Jasco share was trading at 105c on the JSE early this morning, up 5c from yesterday`s close.
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