| Thu 9 May 2002, 0:00 | | Jasco - Audited Results For The Year Ended 28 |
|
Jasco Electronics Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/003293/06)
JSE Share code: JSC ISIN: ZAE000003794
("Jasco")
Audited results for the year ended 28 February 2002
HIGHLIGHTS
* Turnaround strategy successfully implemented
* HEPS 27,6 cents (compared to a loss of 43,2 cents last year)
* EBITDA 46 cents per share (compared to a loss of 58 cents last year)
* Net cash generated of R35,6 million
* Substantially improved balance sheet
Summarised Income Statements
for the year ended 28 February
Audited Audited
2002 2001 %
R'000 R'000 change
Revenue 276 153 417 380 (33,8)
- from continuing operations 190 736 148 812 28,2
- from discontinued operations 85 417 268 568 (68,2)
Operating profit/(loss) before
interest and foreign exchange profits 13 007 (12 344)
Foreign exchange profits 5 379 534
Net interest paid (5 050) (7 544) (33,1)
Operating profit/(loss) 13 336 (19 354)
- from continuing operations 14 641 (11 186)
- from discontinued operations (1 305) (8 168)
Exceptional items (1 769) (98 114)
Net profit/(loss) before taxation 11 567 (117 468)
Taxation - -
Net profit/(loss) after taxation 11 567 (117 468)
Outside shareholders' interest 201 1 017
Net profit/(loss) attributable
to ordinary shareholders 11 366 (118 485)
Exceptional items 1 769 98 114
Headline earnings/(loss) 13 135 (20 371)
Exceptional items (1 769) (98 114)
- impairment of investment (3 279) -
- profit on disposal of subsidiary 9 216 -
- amortisation and impairment
of intangibles (2 000) (22 047)
- loss on disposal of
business operations (1 782) (268)
- discontinuing operations (3 924) (10 818)
- trademark written-off - (56 481)
- loan to Share Incentive Trust
written-off - (8 500)
Number of shares in issue ('000) 48 812 47 177
Number of shares on which earnings
per share is calculated ('000) 47 566 47 177
Profit/(loss) per share (cents) 23,9 (251.1)
Headline earnings/(loss)
per share (cents) 27,6 (43.2)
EBITDA 21 950 (27 674)
Net asset value per share (cents) 61,7 49,6 24,3
Net tangible asset value
per share (cents) 35,9 8,9 304,3
Debt:Equity (%) 51 225 (77,3)
Abridged Consolidated Balance Sheets
as at 28 February
Audited Audited
2002 2001
R'000 R'000
ASSETS
Non-current assets 24 415 37 272
Plant and equipment 7 437 10 947
Intangibles 12 591 19 215
Loans 4 387 7 110
Current assets 126 958 153 037
Inventories 28 305 50 646
Accounts receivable 50 790 81 923
Short-term loan 7 754 -
Pre-payments 489 489
Cash on hand 39 620 19 979
Total assets 151 373 190 309
EQUITY AND LIABILITIES
Equity and minority interest 30 098 23 400
Ordinary share capital and reserves 30 098 20 455
Outside shareholders' interest - 2 945
Non-current liabilities 84 1 463
Interest bearing liabilities 84 1 463
Current liabilities 121 191 165 446
Interest bearing liabilities 54 936 71 169
Non-interest bearing liabilities 66 255 94 277
Total equity and liabilities 151 373 190 309
Statements of changes in equity
for the year ended 28 February
Audited Audited
2002 2001
Note R'000 R'000
Opening balance 20 455 137 591
Attributable profit/(loss) 11 366 (118 485)
Net shares issued 601 -
(Decrease)/increase in
non-distributable reserves (2 324) 2 006
Balance before prior year
adjustment 30 098 21 112
Prior year adjustment 1 - (657)
Closing balance 30 098 20 455
Note
1. Prior year adjustment
In line with AC116, which became effective for year-ends commencing on
or after 1 January 2002, a provision for leave pay was raised.
In terms of AC103 - change in accounting policies - a prior year
adjustment was made to the 2001 financial results. The effect on the
2001 results is an increase in the net loss of R657 000 and a
corresponding increase in provisions in the balance sheet.
Abridged Consolidated Cash flow statements
for the year ended 28 February
Audited Audited
2002 2001
R'000 R'000
Cash generated from/ (utilised in)
operations 18 273 (20 850)
Net financing costs (5 050) (7 544)
Net dividends received - 4 634
Taxation recouped - 105
Cash flow from operating activities 13 223 (23 655)
Cash flow from investing activities 21 063 (959)
Cash flow from financing activities 1 371 1 507
Increase/(decrease) in cash resources 35 657 (23 107)
COMMENTS
Jasco has been restored to profitability. The turnaround evidenced in our
interim results gathered momentum as our strategy to exit high-turnover-
low-margin business and deploy our resources on developing higher margin
core businesses, paid off. Jasco also benefited from higher than expected
export earnings flowing from the weakened Rand.
The combined effects of good trading, cash generation and disposals,
have resulted in a substantially improved balance sheet. Gearing reduced
from 225% last year to 51% this year, with a further reduction after
year-end as detailed below.
POST YEAR-END
The "earn-out" conditions applicable to the sale of On Line Distribution
Limited, reported on in last year's annual report, were substantially
achieved. After year-end Jasco received a further cash payment of
R7,8 million net, which has been used to reduce interest bearing debt.
Had this payment been received before year end, the effect would have
been to reduce Jasco's gearing to 25%. In terms of the sale agreement
a further net amount of up to R2,9 million may still be due, but the
purchasers are disputing this. However, discussions are currently under
way with the purchasers to settle the dispute.
RESULTS
Overall group turnover declined 34% to R276,2 million due to disposals.
However, turnover from continuing operations rose 28% to R190,8 million,
reflecting the underlying strength of our core businesses.
Operating profit from continuing operations turned around from a loss of
R11,2 million to a profit of R14,6 million which includes a foreign
exchange gain of approximately R5,4 million. Headline earnings per share
also turned around from a loss of 43,2 cents to a profit of 27,6 cents.
Earnings before interest, tax, depreciation and amortisation (EBITDA)
amounted to R22 million or 46 cents per share. No tax has been provided
for due to substantial losses in prior years.
OPERATIONS
All divisions performed in line with, or better than, forecast.
Star performers were the Voice and the Manufacturing divisions,
with the Voice division particularly gaining from currency weakness on
its substantial export orders. The Image division staged an impressive
turnaround, making strong inroads into the inner city surveillance and
financial institutions security markets. The Telecoms division
successfully completed contracts in Rwanda and Botswana and is poised
to take advantage of further telecoms network rollout in other African
states. The only division which has not yet achieved profitability is
the new Telesciences division, which incurred a loss as the group
invested for the expected growth opportunities in this business.
With R7 million orders on hand at year end, management expects
this division to become a significant contributor to profit during
the current year.
DISCONTINUED OPERATIONS
The turnover attributable to discontinued operations relates to
R54,6 million from On Line Distribution Limited, prior to the sale
thereof in June 2001 and R27 million attributable to Technology Junction.
Technology Junction is the only distribution business originally
earmarked for disposal, which has not yet been sold. It has, however,
been significantly scaled down to the extent that it is now profitable.
Jasco continues to examine ways to exit this business on the most
beneficial basis possible whilst having regard to the interests of
the employees in that business.
PROSPECTS
The turnaround strategy has been successfully completed. All divisions
are correctly structured and poised to take advantage of opportunities
in their focus.
The Manufacturing and Telecoms divisions are expected to continue to
benefit, directly and indirectly, from the export opportunities which
were established during the past year, particularly in Africa. The Voice
division will also continue to benefit from those export opportunities
in Africa as well as in the European economic community, where they are
currently supplying locally produced products.
The Image division should thrive as both the public and private
sectors spend more funds on security. Telecoms, Telesciences and Voice
divisions are expected to benefit from the establishment of a second
network operator and enhancements of the mobile networks as well as
Telkom's upgrading of its network. Finance costs will also reduce
in line with the ongoing reduction in interest-bearing debt,
notwithstanding a possible increase in the rate of interest.
Based on current circumstances, management expects to achieve operating
growth in all divisions, the extent of which might be influenced by
fluctuations in the exchange rate of the Rand.
ACCOUNTING POLICIES
The results were prepared in accordance with Statements of Generally
Accepted Accounting Practices and are consistent with the previous years
accounting policies save as disclosed in Note 1 to the statements of
changes in equity
DIVIDEND
Although the trading results and cash generation for the year were
satisfactory, the Directors decided that it would be prudent,
at this stage, to continue conserving cash. Accordingly, no dividend
has been declared for the year under review. The dividend policy
will however be reviewed with the interim results to be published in
or around October 2002.
T B Rutstein S H Robertson
(Non-Executive Chairman) (Chief Executive Officer)
M H Lotz
(Financial Director)
8 May 2002
Directors:
T B Rutstein (Chairman), F E Emary (deputy Chairman),
Dr S H Robertson (Chief Executive Officer), J C Farrant,
M H Lotz (Financial Director), Dr J M Matsipa and J A Sherry.
Registered office: Transfer secretaries:
Woodmead Park Ultra Registrars (Pty) Limited
8 Saddle Drive 11 Diagonal Street
Woodmead 2128 Johannesburg 2001
