| Mon 7 Mar 2011, 16:55 | | JSC - Jasco Electronics Holdings Limited - Trading Statement |
|
JSC
JSC
JSC - Jasco Electronics Holdings Limited - 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")
Trading statement
Jasco wishes to advise shareholders that earnings per share ("EPS") for the
six months to 31 December 2010 is expected to be between 65% and 75% lower
than the 10,0 cents EPS reported for the six month period ended 31 December
2009. Headline earnings per share ("HEPS") for the six months to 31 December
2010 is expected to be between 60% and 70% lower than the 9,9 cents HEPS
reported for the six month period ended 31 December 2009. HEPS and EPS for the
six months to December 2010 were impacted by once-off costs relating to the
Company`s acquisition of Spescom towards the end of 2010.
As outlined in the Company`s circular to shareholders issued in November 2010,
the Company expected to incur R4,5 million once-off costs relating to the
Spescom transaction. A total of R4 million actual cost (after tax) was
incurred, which negatively affected this period`s results.
The decrease in underlying earnings was primarily due to the continued impact
of poor economic conditions, particularly in the telecommunications sector.
However, when compared to the six months to June 2010, there has been a
pleasing improvement in the telecommunications earnings during the last six
months. The performances in the Security, Domestic Products and Electrical
divisions remained stable.
However, as the performance of M-TEC has not met the Company`s expectations
set at the time of the acquisition at the top of the economic cycle in 2008,
management has decided to take a more prudent view in terms of the level of
the future profits in this business. A further impairment of R31,9 million in
the carrying value of the investment will therefore be made in this period`s
results.
It is worth noting that the negative impact of the impairment on this period`s
results will be off-set by a fair value gain of R31,7 million arising from the
acquisition of Spescom.
The information in this trading statement has not been reviewed or reported on
by the Company`s external auditors.
Jasco`s interim results will be released on 23 March 2011.
Midrand
7 March 2011
Sponsor
Grindrod Bank Limited
Date: 07/03/2011 16:55:00 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
