Jasco Electronics has warned shareholders that its revenue growth for the six months ended 31 December 2016 will likely be between 5.5% and 7.5% lower than the previous corresponding period. This is according to a trading statement released on the Stock Exchange News Service.
However, the group predicts headline earnings per share will be between 5.5% and 15.5% higher than the previous interim results, coming in between 6.05c and 6.63c per share ? compared to 5.74c per share a year ago.
Earnings per share (EPS) will be between 5.99c and 6.57c per share - an increase of between 4.5% and 14.5% compared to EPS of 5.73c per share for the previous corresponding period.
This after Jasco warned shareholders in September 2016 that it expected the challenging economic climate in 2016 to prevail throughout 2017, with the volatile exchange rate continuing to impact the group negatively.
"In spite of the difficult economic conditions in SA and the negative impact of the rate of exchange during the period, Jasco's first half performance was pleasing, with the benefit of focusing on improving margins rather than revenue growth evident in the results," the group says now.
The group sold its 51% shareholding in its associate, M-TEC, as previously disclosed to shareholders in 2016. The receipt of the proceeds from the sale was accelerated as announced in November 2016. Jasco says the proceeds were utilised to repay long-term debt and consequently to reduce the group's gearing ratio.
"Although the economic outlook for 2017 remains uncertain, Jasco is well positioned to continue improving profitability. The group now has lower levels of debt, all businesses are contributing to profits and it has good cash generation," it says.
Jasco's unaudited interim results for the six months ended 31 December 2016 will be announced on 14 February 2017.
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