JSE-listed electronics company Jasco is seeking niche acquisitions for its ICT unit and wants to expand its voice over IP (VOIP) offering.
The company this week published its results for the six months to December. It reported revenue 55% higher, at R493.9 million, which includes the contribution from Spescom, which Jasco bought towards the end of 2010, for R55.8 million.
Group operating profit increased 30%, to R20.6 million. CEO Pete da Silva says the company spent the last six months flattening the structure and removing R8 million a year in costs.
Getting there
While there is still much to be done, the signs are there, says Da Silva. “The bus has departed and the right team is on board.”
Jasco has three divisions - ICT Solutions, Industry Solutions and Energy Solutions - after the company was restructured about six months ago.
Jasco may make one or two acquisitions in its industry and energy units “as the months roll on”, says Da Silva.
Jasco has integrated Spescom into its ICT operations, which has created greater value than leaving it as a standalone entity, notes Da Silva. “One and one, in this case, really did equal three.”
The listed company trimmed 24 people from M-Tec and Spescom, adds Da Silva. He says both these investments are still being watched carefully to ensure they provide value.
The retrenchments cost the company R1.2 million, but Da Silva says he had to act immediately to get efficiencies from the unit. Jasco currently has about 1 000 staff members.
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