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Jasco Electronics has issued a trading update, indicating positive impacts from its restructuring.
The company states that, in spite of difficult economic conditions in South Africa and severe volatility in the rate of exchange during the period, its first half performance was pleasing.
For the six months ended 31 December 2015, the company expects revenue growth to be between 8% and 13% higher than the previous corresponding period. Operating profit will be between 265% and 285% higher than the previous period, earnings per share (EPS) will be between 760% and 780% higher, and headline earnings per share (HEPS) will be between 730% and 750% higher.
The weighted average number of shares in issue for the period increased from 214 269 855 to 223 997 016 due to a full weighting of past share issues in the current period. There have been no shares issued since the previous financial year ended 30 June 2015.
During the period, the group sold its 51% shareholding in its associate, M-TEC, as disclosed to shareholders previously in 2015. The final suspensive condition, being approval from the Competition Authorities, is the only outstanding item. This is expected in the near future.
The company states that Jasco has returned to profitability and is well positioned to negotiate the challenging economic conditions expected to continue during 2016.