Jasco CEO Pete da Silva. Picture: FINANCIAL MAIL
Jasco CEO Pete da Silva. Picture: FINANCIAL MAIL

Jasco managed to improve profitability by sacrificing unprofitable sales, the electronics firm said in its interim results statement on Tuesday.

Revenue for the six months to end-December declined 7% to R521.1m while aftertax profit grew 5% to R15m.

Headline earnings per share (HEPS) grew 10% to 6.28c.

Jasco’s operational performance improved over the period despite a tough economic conditions, CEO Pete da Silva said.

The company said electrical manufacturing, a big part of its revenue, contributed to the improved performance as it moved against negative market trends due to a diversification strategy that expanded the client base and increased sales volume.

Another division of Jasco that performed well was intelligent technologies, despite lower revenue reported in renewable and other power generation. Jasco’s enterprise division traded-off sales volume for the period for an improvement in profitability by reducing the cost base through the planned exit of an unprofitable security contract. This improvement in profitability added to Jasco’s marginal gains.

Jasco’s carrier business did not perform well as a result of telecommunications operators spending less due to market consolidation, which resulted in lower revenue for the period. This area was the worst affected by the volatile rand.

Jasco received R40m in the second quarter through the sale of its investment in cable company Malesela Taihan Electric Cable (M-Tec). The company redeemed R20m of its domestic medium-term note programme corporate bond, which reduced the amount owing to R70m. This reduced Jasco’s available cash but improved its capital balance position. A further R10m was redeemed on January 31 this year, which further improved Jasco’s capital balance position.

Jasco was founded in 1976 and listed on the JSE in 1987.

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