Jasco Electronics achieved net income of R2.62 million in the six months to August, compared with a R4.8 million loss for the same period a year earlier.
CEO Stuart Robertson says the latest results reflect the ongoing turnaround from the small operating profit achieved at the February 2004 year-end.
"Last year we were faced with a raft of challenges," he says, adding that the group faced them by remaining focused on a diversified portfolio of core businesses, discontinuing loss-making operations, improving sales and manufacturing efficiencies, maximising working capital to maximise cash generation, and building on its empowerment strengths.
"The benefits of our BEE credentials have started to flow through to our results, and we have been winning tenders we would not have been able to in the past," Robertson says.
The deals include one of R5 million in its security division, as well as a number of other deals in the telecoms business.
The telecommunications division remains the biggest contributor to revenue (60%), and stands to benefit from local deregulation and from projects to address low teledensity throughout Africa. "The telecoms industry is really happening now," Robertson comments.
The division achieved a 70% increase in operating profit.
The manufacturing division, which contributed 28% to revenue, achieved a 35% increase in operating profit. Ongoing consumer demand and electrification augurs well for future growth, says Robertson.
The security division, however, reported a 23% decrease in revenue and a small operating profit. While orders were muted in the first half, Robertson says there are now pleasing orders on hand and the management team is focusing on completing this work and reducing expenses.
The division is expected to show improved results by the year-end.
Robertson says the group`s second half is generally better than the first.
"Now that our turnaround is gathering momentum, although off a low base, management can focus on delivering the growth we have planned all along," he says.
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