Jasco Electronics to narrow interim loss
The company took a R163m revenue hit during the pandemic, having breached its loan covenants
Technology group Jasco Electronics expects to have narrowed its losses in the six months to end-December 2020.
Jasco, now worth R41.3m, provides transmission and operational support systems for telecom networks across Southern Africa.
On Tuesday, the company said it expects to report a headline loss per share of between 1.3c and 1.8c compared to 5.2c loss for the previous corresponding period. This would mark an improvement in the loss-making position of 65% to 75%.
Jasco, which recently named Warren Prinsloo as its new CEO, is focused on managing its debt and containing losses.
The company took a R163m revenue hit during the pandemic towards the end of its financial year to end-June 2020, having breached its loan covenants.
The group suffered an annual loss of R102.6m for the period, saying it would look at selling off assets and cutting more costs after telecom firms cut back on their infrastructure spending due to Covid-19. Jasco is aiming to cut its debt in half by June 2021.
Jasco had swung into to a loss in 2019 when SA’s telecom operators cut back on their infrastructure spending.
Shares in Jasco, a little traded stock, fell 10% on Tuesday to close at 18c. The stock is 20% stronger since the start of the year.
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