Jasco returns to a profit

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Jasco returns to a profit

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Published Date: 2021-03-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

Jasco returns to a profit

Despite reduced revenue, the technology group benefitted from cost-cutting following a restructuring of its operations.

Jasco Electronics has posted an interim profit after a stringent focus on cost-cutting and efficiencies paid off.

The technology group said the first half of its financial year continued to be affected by the impact of Covid-19 on its customers and the economy. But while revenue was down from the same period a year earlier, it was an improvement on the previous six months - which included the hard lockdown. It also benefited from a restructuring to ensure ongoing improvement in uncertain markets, resulting in a new group structure last November.

Revenue from continuing operations for the six months to end-December declined by 16% to R351-million, mainly due to the ongoing effect of the Covid-19-related lockdown. Profit before interest and tax from continuing operations improved to R1.9-million from a R6.2-million loss a year earlier. It attributed this to significant cost savings across the group, which were offset by a R14-million decrease in profit by Datavoice in its Communications Solutions business.

Earnings per share increased to 4.1c from a 6c loss, boosted by a R14.7-million profit after it relinquished control of its Reflex Solutions business. The investment was equity-accounted from 20 September. Its headline loss narrowed to 1.5c from 5.2c.The group's closing cash balance increased to R31.7-million, up from R21.3-million in June.

Earlier this month the group appointed Warren Prinsloo as CEO, replacing interim CEO Pete da Silva who returned to his duties as an alternative non-executive director to the deputy chairman. Lisa Prigge was appointed as chief financial officer.

The company's shares closed unchanged at 20c yesterday.





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