Jasco warns of loss as clients spend less on infrastructure
The group provides critical installation, support and maintenance for telecommunications operators, which have cut back on spending
Technology group Jasco Electronics warned it had swung to a loss in its six months to end-December as SA's telecommunications operators cut back on their infrastructure spending
The group, which provides transmission and operational support systems for telecommunications networks across Southern Africa, said in a trading update it expected a headline loss per share of between 5.1c and 5.3c, from headline earnings of 1.3c previously.
Headline earnings per share (HEPS) is a key profit measure in SA, stripping out one-off items to give a better indication of underlying performance.
“Despite the uncertain economic outlook for 2020, now compounded by the extraordinary circumstances arising from the Covid-19 pandemic, Jasco will continue its focus on improving profitability through its strategy of targeting higher-margin revenue, from a much lower overhead cost base,” the statement read.
The group said it had recently completed a restructure of its head office, which was expected to result in annual cost savings of between R10m and R12m
In morning trade on Tuesday Jasco’s share price was unchanged at 8c, having lost about three-quarters of its value over the past 12 months. The group has a market capitalisation of R18m.