Jasco Electronics Holdings has warned that the strengthening of the rand has affected the performance of its telecommunications division, which traditionally accounts for 60% of operating profit.
More than 30% of Jasco`s revenue comes from exports.
"As indicated in the annual report, a strong rand impacts the international competitiveness of the group and results in lower turnover and margins," it says in a trading update issued this morning.
The group says that in the first four months of this financial year the manufacturing division performed in line with expectations while the security division achieved growth.
However, the telecommunications division was hit by the rand`s strength.
"Furthermore, the take-up of products by two major customers of the telecommunications division has been slower than expected.
"While the order inflow in the telecommunications division improved in June, and is expected to continue improving, the directors consider it unlikely that this shortfall will be fully recovered during the second quarter."
As a result, it says, the results for the first six months, expected to be released in October, are likely to be lower than those of the same period last year.
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