JASCO ELECTRONICS HOLDINGS LIMITED - Trading Statement

Trading Statement

JASCO ELECTRONICS HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration Number 1987/003293/06
Share code: JSC     ISIN: ZAE000003794
(“Jasco” or “the company” or “the group”)



TRADING STATEMENT

Period under review
Against   continued   challenging  market   conditions,   Jasco
pleasingly met its commitment to improve its profitability
compared to the immediately preceding six-month period to June
2018 and to the comparative six-month period to December 2017.
Jasco therefore advises that it expects:
    •   Revenue growth for the six months to 31 December 2018 to
        be between 3,0% and 4,0% higher than the R555,5 million
        (between R574.9 million and R577.7 million)for the six
        months to 31 December 2017;
    •   Earnings per share (“EPS”) to be between 138% and 148%
        higher (between 1,12 cents and 1,41 cents per share)
        compared to the 2,90 cents loss per share for the six
        months to 31 December 2017; and
    •   Headline earnings per share (“HEPS”) to be between 243%
        and 253% higher (between 1,28 cents and 1,36 cents per
        share) than the 0,89 cents loss per share for the six
        months to 31 December 2017.
The difference between earnings and headline earnings growth
relates to the disposal of fixed assets and is not material.
The weighted average number of shares in issue for the period
was slightly up from 226 777 629 to 228 659 782 due to a
reduction in the number of treasury shares. This did not have a
meaningful impact on the results. No shares have been issued
since the previous financial year ended 30 June 2018.
The key features of the performance in the last six months are
outlined below:
  •   ICT revenue and profit performance increased due to higher
      spend in the telecommunications sector, a good performance
      from the Channel business and the first six-month
      contribution to revenue and operating profit from RAMM
      Technologies;
  •   Security & Fire’s revenue was flat and the profit
      performance declined due to a lack of projects from its
      major customers;
  •   Power & Renewables’ revenue declined following delays in
      securing new projects in the group’s renewed focus on photo-
      voltaic solutions targeted at the high electricity tariff
      user market. However, the profit performance improved due
      to a cost restructure undertaken in 2018; and
  •   Electrical Manufacturers’ revenue and profit decreased due
      to a lack of volumes from its major customer during the
      first quarter.

Conclusion
Despite the uncertain economic outlook for 2019, Jasco will
continue its focus on improving profitability through its
strategy of targeting higher-margin revenue, as well as reducing
costs.
The information in this trading statement has not been reviewed
or reported on by the company’s external auditors.

Jasco’s unaudited interim results for the six months ended 31
December 2018 will be announced on or about 12 April 2019.


Midrand
9 April 2019


Sponsor
Grindrod Bank Limited

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