The impact of the economic slowdown can be seen in its results for the year to June, as spending declined, says Jasco Electronics Holdings.
The company reported comparative revenue up 10.4%, to R599.8 million, but operating profit before interest and tax was 7.8% lower, at R51 million.
It points out that the company has changed its year-end, so the interim period was for the 12 months to February. Its historic businesses continued to show solid growth at both revenue and operating profit level, with four-year compounded revenue growth of 25%. However, the trading environment deteriorated dramatically from March.
Revenue for the 16 months to June increased to R773 million and operating profit for the period increased to R72 million.
However, earnings per share (EPS) and headline earnings per share (HEPS) decreased to 36.2c and 36.7c. This was mostly due to poor economic and market conditions, as well as the dilution effect of Jasco's empowerment deal on the number of shares in issue.
The electronics company says the market downturn was first felt within the durable goods industry, a trend which continued to impact on its Domestic Products division in the second half of the year.
However, the security division had a strong period to February, which mostly compensated for Domestic Products' performance on turnover and profit. The telecommunications division increased its market share, despite a very challenging environment, says Jasco.
Its associate, M-TEC, showed an improvement in contribution during the last four months. Jasco bought 51% of M-TEC for R214 million during the year.
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