JSE censures Jasco over release of unaudited results
Apart from creating wrong impression over results, the technology firm also failed to issue a trading statement, bourse says
The JSE has censured Jasco Electronics for releasing unaudited results that the technology group said were audited.
Jasco also failed to release results containing details of modifications, and failed to issue a trading statement to alert the market about the extent in movement of its profits, the JSE said on Monday.
Jasco had released results in 2018 for its year to end-June that had stated they were audited but the group had then retracted it and requested its suspension until audited results were released.
In a separate statement on Monday, Jasco said it had taken the steps with full appreciation of the importance of accurate and reliable financial information.
The company said it self-corrected when the issues were raised and these corrections were disclosed to all shareholders. “All steps taken by the company in the circumstances were taken with full appreciation of the critical importance of accurate and reliable financial information being published.”
“The company and the board of directors also took immediate steps at the time to implement additional measures and processes to prevent any similar recurrences in the future,” the statement reads.
“The company and the board of directors accept the decision of the JSE,” it reads.
On Monday, Jasco shares were 25% higher at the close of trade on Monday at 15c, giving it a market value of R34m. The company has lost 68% of its value since January.
Operationally, Jasco has said it anticipates growth in three main areas: information and communication technology (ICT), power and renewable energy, and security and fire solutions.
The ICT business remains Jasco’s biggest unit, accounting for about 75% of turnover. The introduction of the high-speed 5G network and continued increasing demand of data centres is likely to drive growth in this segment, due to fibre requirements for connectivity, a business that Jasco is already in.
Revenue for the year to end-June 2019 marginally declined to R1.14bn, compared to R1.15bn in the previous year.
With Karl Gernetzky
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