Jasco Electronics Holdings Limited (Jasco) has announced results for the six months ended 31 December 2015. The operational performance of the group improved significantly against difficult market conditions, with all businesses contributing to profits. Strong order book and prudent cost management delivered operating profit growth of 290%. The Carrier and Intelligent Technologies businesses – representing 58% of the group’s revenue – delivered strong results and management’s focus on the Enterprise business resulted in its return to profitability. The investment in M-TEC remains classified as “held-for-sale’, with the 51% investment therefore not equity accounted. The final suspensive condition of formal approval from the Competition Commission is expected during the next few months.
Commenting on the results, Jasco’s CEO, Pete da Silva, said, “We are extremely pleased with the improvement in results, especially against the tough market conditions. We have focused on driving sales, with our order book up 24% from December 2014 and a focus on cost cutting resulting in 6% cost savings. The majority of our businesses delivered strong results, with all businesses now profitable, including the previously under-performing Enterprise.
“We continue to focus on a number of key initiatives to ensure continued improvement. Although the gearing ratio improved from 73.3% at June 2015 to 64.8% at December 2015, we want to see a further improvement, which is expected after receipt of the M-TEC sale proceeds. Enterprise is now profitable after strong action taken, but we will focus on the execution of large projects to achieve the required revenue. We remain focused on improving working capital. During the first six months, the main drive was on volume and profitability in the Carrier business, which necessitated a greater investment in working capital. This investment will translate into cash inflows in the second half. A close watch will remain on the inventory and accounts receivable levels in the group.’
