JSE-listed Jasco Electronics Holdings has posted a R2.5 million attributable loss on a turnover of R206 million for the six months to August, but expects a profit for the full year.
The company attributes the poor results to a sharp decline in operating margins in its data distribution businesses.
Added to this was the surplus of stock after the Y2K rollover, which the company says has affected its gearing ratio.
Operating margins were also impacted by what Jasco describes as the "need to maintain structures in anticipation of the award of the third cellular network, which was expected in August".
Pascom Electronics, the data cabling distribution division, was disposed to management for R6.75 million. The parent company will use the cash to offset interest-bearing debt.
The balance sheet for the six months reflects interest-bearing liabilities at R60.6 million.
A headline loss of 5.4c was reported as opposed to the headline profit of 1.2c per share reported for the comparable period in 1999.
Management says stock levels have been reduced and "strong measures" have been employed to improve operating margins. The company is confident of a recovery and is predicting a profit for the full year.
The Jasco board says the awarding of the third cellular licence or the granting of the GSM 1800 spectrum to Vodacom or MTN would dramatically enhance its growth prospects.
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