JSE-listed Jasco Electronics Holdings has reported a 61% increase in net profit for the year to 28 February.
The group has several companies in three divisions: telecommunications, manufacturing and security.
A profit of R18.14 million compares with a prior-year profit of R11.29 million. Revenue grew 31% from R254.78 million to R334.4 million.
CEO Joe Madungandaba says 2.5% of the revenue growth came from "improvements in selling prices", while the rest was the result of an increase in volumes. A higher operating margin of 9.1% (2005: 8.8%) before interest paid and taxation is due to improved efficiencies, he adds.
Earnings per share rose from 16.3c to 26.2c while headline earnings per share increased from 16.3c to 27.7c.
The 2005 results have been restated to reflect the adoption of international financial reporting standards.
The balance sheet shows current assets of R111.25 million (R74.54 million), of which R14.68 million (R5.29 million) is cash. This compares with current liabilities of R65.72 million (R41.98 million).
A dividend of 9c has been declared, payable on 15 May.
"All our key financial and operational indicators are strong, with our divisions continuing on a solid growth path," Madungandaba says.
"We have no gearing, which places us in a position to capitalise on relevant market opportunities as they arise."
He adds that the company examined acquisition opportunities during the year, and while a few minor acquisitions were made, Jasco did not make any major purchases.
"The group is currently under cautionary as it is investigating certain meaningful acquisition opportunities," he says.
Jasco`s share was trading 13c or 4.5% up at 300c this morning after 1.49 million shares were traded in 16 deals.
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