Jasco benefits from acquisition, ICT contracts

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Jasco benefits from acquisition, ICT contracts

Published Date: 2019-04-15 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Jasco benefits from acquisition, ICT contracts

The group has swung back to a profit and plans to review its capital structure to unlock potential future growth opportunities.

Jasco has bounced back from last year's interim loss thanks to the acquisition of internet of things business RAMM Technologies and a couple of big contracts at its Information and Communication Technology (ICT) division. So, while market conditions remained tough for the group, it benefited from a large international project at its Datavoice business and a network infrastructure roll-out by Webb Industries for a major telecommunications operator.

The group is busy repositioning itself as a systems integrator and service provider, moving away from its traditional product development, distributor and reseller model. Its subsidiaries are grouped into four areas including ICT, Security and Fire, Energy, and Manufacturing.

Revenue rose 3.8% to R577 million in the six months to end-December, mainly due to a contribution from RAMM Technologies and good volume growth at its ICT-Carrier business. It said this was offset by lower volumes in Energy and Electrical Manufacturers. Operating profit jumped 46% to R26 million as it kept a lid on costs and due to increased profit in ICT-Carrier and ICT-Enterprise. Net profit increased by 144% to R2.9 million and it reported a 143% rise in earnings per share (EPS) to 1.3c. Headline EPS rose 250% to 1.3c from last year's 0.9c loss.

Jasco said it planned to focus on reducing its gearing to below its internal target of 50% using cash generated by its operations. It also plans to review its capital structure to unlock potential future growth opportunities, with specific emphasis on Managed Solutions as a fast-growing and higher-margin business area.

Its shares didn't trade on Friday, ending the week at 25c.





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