The global financial crisis has impacted negatively on Jasco Electronics’ financial year ended 30 June 2011.
This year’s results were also influenced by a number of non-operating items, as well as the first-time earnings contribution from Spescom, which was acquired with effect from 15 December 2010.
Reported headline earnings per share (HEPS) was 16% down to 14 cents per share. Excluding the non-operating impacts of R10,4 million, as well as Spescom’s first-time six month earnings contribution of R4,6-million, like-for-like HEPS was 24% higher at 20,5 cents per share. Reported earnings per share (EPS) was 59% down to 7,8 cents per share, with like-for-like EPS up 21% to 20,3 cents per share from 16,8 cents per share in June 2010.
During the last six months, the Spescom businesses have been fully integrated. The group has already removed R9,7-million from its future cost base by flattening the organisational structure and restructuring the business. These savings include the elimination of duplicated senior executive positions, direct listing costs such as non-executive directors, annual reports and professional services fees. Savings also include rental savings in consolidating the head offices and combining certain ICT business units which did not meet the group’s minimum size criteria.
In addition, although Jasco has always had a clear focus around electronic and electrical products and solutions, the group currently has numerous smaller businesses and brands. To ensure a more integrated business development focus, it has been restructured into three verticals: ICT Solutions, Industry Solutions and Energy Solutions.
Group revenue increased by 38% to R773-million, due to R21-million in Snapper product sales, R6,9-million from Maringo, now consolidated, and R173,6-million from Spescom during the second half.
Excluding the impact of these acquisitions, organic growth was flat.
Reported group operating profit declined by 11% to R28,8-million, with like-for-like operating profit increasing by 42% to R42,3-million.