JSE-listed Jasco Electronics Holdings is planning to make some acquisitions in the ICT and electronics (ICTE) sector to complement its organic growth.
Chief operating officer Martin Lotz said at the presentation of a strong set of interim results yesterday that the group was looking to use its black economic empowerment status and its partners to expand its portfolio of businesses in the ICTE sector.
Jasco, which operates in telecoms, manufacturing and security, would consider companies held by parent CIH to exploit synergies in the technology sector, he added.
Lotz said he could not say at this stage what the size of the potential acquisitions would be.
"There are a number of opportunities we are looking at," he said. "I can`t say anything about the size, but if they fit the Jasco profile, we will look at them."
The group would use cash, shares, or a combination of both to pay for any acquisitions.
Jasco ended the six months to 31 August with no cash on its balance sheet and a R412 000 bank overdraft.
However, Lotz said this position was temporary - the result of rapid growth in turnover in the second quarter of the financial year. Revenue for the six months grew 22.7% to R149.72 million from R122.01 million for the same period the previous year.
Headline earnings per share rose 43.2% from 7.4c to 10.6c, while attributable earnings per share increased 32.4% from 7.4c to 9.8c.
The August 2004 results were restated to reflect the adoption of International Financial Reporting Standards (IFRS). The group has also restated, for IFRS purposes, the results for the year to February 2005.
Lotz said the second half of Jasco`s year was traditionally better than the first half. Cash generation was expected to improve and the overdraft, as well as the 3% gearing, would be reversed.
In addition to acquisitions, the group is focusing on achieving sustainable organic growth, funded by cash from operations. It also plans to identify synergies with external parties to increase market share or capacity.
Related stories:
Good six months for Jasco
Big plans for Jasco
Share
