Jasco reports lower revenue than in prior financial year
The listed tech firm says management instituted a number of corrective measures during the year, which affected the business’s profitability
Listed technology firm Jasco says revenue for the year to end-June marginally declined to R1.14bn, compared to R1.15bn made in the previous year.
Earnings before interest, tax, depreciation and amortisation (ebitda) were up 4% to R118.9m but group earnings per share (EPS) were 12.9c, with headline earnings per share (HEPS) at 10.7c an increase in losses from the previous year.
The company said management implemented a number of corrective measures during the year, which affected the business's profitability.
Jasco said it was working hard to reduce the amount of debt. It said the current gearing percentage of 81.4% was well above its 50% benchmark. The working capital requirement has resulted in Jasco increasing its debt obligations by R20m, including loans from the Bank of China.
It also expressed disappointment in the results of the disposal of its East Africa business and closure of the Middle East operation, adding that the impairment of goodwill in its power unit and ongoing losses in the security unit all contributed to the poor results.
The group said it hopes to accelerate growth in its business through “investment into key growth markets [and to] launch new smart solutions offerings of open access networks, digital billboards, solar power purchase agreements or lease-to-own and cloud workforce management”.
Jasco also said it had sold its entire stake in its Electrical Manufacturers Division to African Zaibatsu Corporation for R65m. The division had contributed R6.5m profit after tax to Jasco's bottom line, from R76.9m in revenues for the year.
Shares in Jasco were trading 26.67% down at 22c per share at 3pm on Friday.