Listed electronics company Jasco's earnings will be lower for the first half of the year, because of once-off costs relating to its purchase of Spescom.
The merged entity will combine Jasco's telecommunications experience and Spescom's ICT expertise, to allow the companies to take part in the growing move towards converged telecommunications.
However, Jasco yesterday said both headline and earnings per share would drop, because of once-off costs incurred as a result of the merger. Jasco spent about R4 million on the buyout.
Headline earnings per share will be between 60% and 70% lower, while earnings per share will drop between 65% and 75%. A year ago, headline earnings per share were 10c and earnings per share were 9.9c.
Jasco explains underlying earnings were also negatively affected. The decrease, which it did not detail, is due to “the continued impact of poor economic conditions, particularly in the telecommunications sector”.
However, the company says, when compared to the second half of last year, there has been a “pleasing improvement in the telecommunications earnings”.
Jasco's interim results will be released on 23 March. Its shares closed unchanged at 124c yesterday.
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