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Media Release

26 Sept 2018

Third year of being profitable in volatile conditions

Jasco Electronics Holdings Limited (Jasco) today announced results for the year to 30 June 2018.

Commenting on the results, Jasco’s new CEO, Mark van Vuuren, who took over from the previous CEO on 1 July 2018 said:

“Tough economic conditions continued to impact our performance during F2018. Even against this, we managed to deliver improved results. Although these improvements were off a low base, I am encouraged that the group has stabilised and reached a more solid foundation from which we can now execute on our strategy to build a sustainable and profitable business.

“As the new CEO, I have reviewed our strategy and way of operating. I found it to be in-principle sound, although I believe some adjustments needed to be made. Following a detailed review, a common set of strategic goals underpinning our strategy was created, which gives a clear direction to our employees on what is required to deliver on our strategy. The three strategic goals underpinning our strategy are to improve earnings, develop our people and accelerate transformation, with a focus on broad-based black economic empowerment, as well as the digitisation of our business and the evolution of our portfolio into a smart solutions provider of choice.”

Commenting on the outlook, Van Vuuren said:

“Against markets that will remain tough, it is imperative that we now shift from planning into execution mode to deliver against our strategic goals. This will be our key focus over the next 12 months. As the new CEO, I am very clear on what we need to deliver. We need to focus on the basics of improving our earnings, addressing under-performing businesses and reducing costs before we can grow. Also, to ensure we remain competitive in South Africa, we need to focus on attracting the best talent in an environment where skills loss to other countries are real and we need to ensure we continue with our transformation journey in the context of requirements in South Africa.”


  • Revenue increased by 10% to R1,150 billion (F2017: R1,044 billion)

    • This was on small increases in all business units outside of Carriers, as well as a 12-month contribution from Reflex Solutions of R157,0 million (F2017: R28,3 million for two months). The other acquisition, RAMM Technologies, contributed revenue of R13,3 million for four months

  • As the group continues to increasingly invest in technology, measuring earnings before interest tax, depreciation and amortisation (EBITDA) has become a more relevant management measure and allows for improved comparability to Jasco’s peers. On this basis, EBITDA increased by 45% to R81,9 million (F2017: R56,3 million)

  • The operating profit before net interest was up 28% to R53,7 million from R41,9 million in F2017

    • This was mainly due to the contributions from Reflex Solutions and RAMM Technologies. Although the organic profit declined, significant cost reductions partly off-set the lower volumes

  • Net operating margin of 4.7% was up on 4.0% last year

  • Earnings per share (EPS) was up 8% to 3,9 cents per share (F2017: 3,6 cents per share)

  • Headline earnings per share (HEPS) was up 10% to 2,7 cents per share (F2017: 2,5 cents per share)

    • The weighted average number of shares in issue increased from 226,9 million to 229,1 million shares

  • The statement of cash flows reflects an inflow in cash generated from operations before working capital changes of R82,8 million compared to R58,8 million in F2017

    • This was mainly due to the contributions from the new acquisitions and the higher level of depreciation and amortisation in the current financial year

    • Jasco’s net cash in the bank position of R67,9 million decreased from R95,6 million in F2017, mainly due to the working capital demands


All business units comply with the minimum revenue threshold of R150 million per annum in line with our strategy.

CARRIERS – 30% of group revenue

  • Revenue declined by 10% to R348,7 million from R385,8 million

    • This was due to lower orders in tough market conditions

  • Operating profit was up by 4% from R51,0 million to R53,1 million

    • This was due to a focus on overhead costs and efficiencies and a particularly pleasing results from Webb Industries

    • Carriers remains Jasco’s largest profit contributor.

  • The operating margin remained healthy at 15.1% (F2017: 13.2%)

ENTERPRISE – 34% of group revenue

  • Revenue increased by 27% to R400,7 million from R315,7 million

    • This was due to the first full year of contribution from our IT services business, Reflex Solutions, compared to two months last year and the start of corrective actions

  • Operating profit turned around from a loss of R3,4 million to a profit of R14,9 million

  • Whilst the operating margin is still not achieving the group’s profit target levels, it was pleasing that an operating margin of 3.7% was achieved compared to an operating loss of 1.1% last year

INTELLIGENT TECHNOLOGIES – 18% of group revenue

  • Revenue increased by 25% from R165,3 million to R207,2 million

    • The growth in revenue was due to several long-term projects that create annuity revenue and the inclusion of R13,3 million of RAMM Technologies for four months

  • Operating profit declined by 17% from R22,1 million to R18,2 million

    • Although revenue growth was strong, the losses incurred in the Power business due to its lack of sales in poor market conditions impacted profit

  • Operating margin was down to 8.8% from 13.4%.

ELECTRICAL MANUFACTURERS – 18% of group revenue

  • Revenue increased by 7% from R190,8 million to R203,5 million despite a tough year, with the South African economy showing almost no growth

    • The majority of the increase was due to higher volumes from our major appliance customers, specifically from the refrigeration plants. For the first time in the business unit’s history, it exceeded the R200 million revenue level

  • Operating profit remained R13,2 million, with a decline in operating margin from 7.0% to 6.5%

    • While business volumes increased, gross margins continued to come under pressure from this business unit’s largest customer in the appliance white goods market. The more profitable product lines in the wiring harness space were also lost to competitors due to unsustainably low pricing levels. This had a further negative impact on the gross margin product mix. To address this, Electrical Manufacturers continued to focus on its customer diversification strategy, which resulted in increased sales from new customers

Issued by:

HG Strategic Communications

Heidi Geldenhuys: 083 325 8924


Jasco: 011 266 1500

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