JSE-listed Jasco`s share surged 15% yesterday after the telecommunications and electronics group reported an increase in full-year attributable earnings of 80%.
<B>Salient figures</B>
Jasco Electronics Holdings results for the year to 28 February 2003.
Previous year`s figures in parentheses:
Revenue: R284.4m (R190.7m)
Operating profit: RR21m (R14.6m)
Attributable profit: R20.48m (R11.37m)
HEPS: 41.7c (27.6c)
NAV per share: 95.3c (61.7c)
NTAV per share: 73.2c (35.9c)
Current assets: R97.69m (R126.96m)
Cash on hand: R2.73m (R39.62m)
Current liabilities: R90.98m (R121.19m)
Cash generated from operations: R22.74m (R18.27m)
Cash flow from operating activities: R15.71m (R13.22m)
Note: The figures are provided on a continuing operations basis and exclude the benefits of recognising a deferred tax asset.
The increase in attributable earnings to R20.48 million in the year to end-February from R11.37 million the previous year excludes the benefit from recognising a deferred tax asset. With that included, attributable earnings soared to R28.43 million.
Excluding the deferred tax asset, headline earnings per share rose 51.1% from 27.6c to 41.7c.
CEO Stuart Robertson attributes the performance to a turnaround strategy completed in the previous financial year. The positive effects of that strategy continued to gather momentum in the latest year to end-February, he says.
All the group`s divisions ended the year profitably, although the security division turned in poor results, reporting a 22.1% drop in revenue to R22 million, contributing 7.2% of group revenue.
Robertson says a recovery strategy was implemented but completed only in the final quarter of the year. "However, the business is gathering momentum and is expected to be a significant contributor during the next 12 months."
The telecommunications division, which accounted for 65.4% of group revenue, continued to produce strong growth in the local market and also exported products and services to Africa and the European Union.
Revenue in that division increased by 80.4% to R201 million.
The manufacturing division`s revenue rose by 32.3% to R60.6 million, contributing 19.7% of group revenue.
Robertson says the recently announced acquisition of Tasslelane Investments, a subsidiary of black economic empowerment (BEE) company Community Investment Holdings, is a further step in Jasco`s turnaround strategy it set out to achieve three years ago.
"Having restructured management and eliminated the low-margin, non-performing businesses, Jasco is now set to grow.
"The BEE transaction has strengthened the group`s long-term sustainability as Jasco has an established blue-chip client base that includes several government/public sector and parastatal companies that require suppliers to have meaningful black empowerment credentials."
The results pleased the market, with the Jasco share rising 22c to 170c on the JSE yesterday. The price was unchanged at midmorning today.
Share
