http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.63Change: -0.14
R/$ = 10.60Change: -0.09
Au 1284.05 $/ozChange: 2.43
Pt 1404.50 $/ozChange: 4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 06, 2012

Jasco says Spescom integration, restructuring starting to bear fruit

Back
Jasco CEO Pete da Silva discusses the company's future focus points and concerns. Camera work: Nicholas Boyd, Editing: Darlene Creamer
SECURITY|Cable|Energy|Energy Solutions|Enterprise Applications|Ferro Resistant Technologies|Flow|ICT SOLUTIONS|Industry Solutions|Power|Road|Security|Spescom|Security|Cable Manufacturer|Capital Management|Communication Technology|Communications Technology|Energy|Flow|Mining|Security|Pete Da Silva|Power|Security|Communications Technology|Information Technology
security|cable|energy-company|energy-solutions-company|enterprise-applications|ferro-resistant-technologies|flow-company|ict-solutions|industry-solutions-company|power-company|road|security-company|spescom|security-facility|cable-manufacturer|capital-management|communication-technology-industry-term|communications-technology-industry-term|energy|flow-industry-term|mining|security-industry-term|pete-da-silva|power|security-person|communications-technology|information-technology
© Reuse this



The benefits of JSE-listed Jasco’s successful integration with information and communication technology (ICT) firm Spescom, its restructuring and the improved contribution from the group’s investment in cable manufacturer M-Tec have started to flow through, CEO Pete da Silva said Monday.

The company reported 75% profit growth in the six months ended December 31, rising to R11.88-million, from R6.79-million a year earlier.

Following the combination of Jasco and Spescom, group revenue increased by 55% to R493.9-million, compared with R313.4-million in 2010, while operating profit increased by 30% to R20.6-million, from R15.9-million in the previous year.

Da Silva stated that this was mainly owing to the improvement in the group’s largest consolidated contributor, the ICT solutions vertical, as well as once off costs falling to R1.2-million from R4.2-million in the previous comparative period.

Meanwhile, headline earnings a share were up 96% to 6.9c a share, compared with 3.5c a share in the 2010 period, with earnings a share rising by 130% to 6.4c a share from 2.8c a share in 2010. The weighted average number of shares in issue increased from 116.5-million to 140.8-million shares.

“We are satisfied with the results, which indicate the benefits of our restructuring and a renewed focus on driving performance,” Da Silva noted.

The company had reinvigorated the organisation by creating a unified brand with a dedicated customer focus, flattening the organisational structure and reducing its cost base by R8-million a year.

“Although it is not the end of the road, we have delivered on our objectives so far, with positive feedback from customers, a stronger brand recognition and cross-selling across the group gaining traction,” he said.

Da Silva added that the company’s focus over the next six months would continue to be on ensuring sustainable performance at M-Tec and addressing underperformance at its product development house Enterprise Applications, while extracting further cost savings and improving working capital management.

“The benefits of operating as an integrated group, with clear verticals focused on targeted customer segments, have only started to kick in, with the medium- and longer-term outlook positive and several strategic opportunities in the short term. Further cost savings are set to be extracted from the business, such as the benefits from rightsizing and the impact of merged businesses and lower compliance and other costs,” he noted.

Further, the group’s bolt-on acquisition plan was reported to be on schedule, without sacrificing focus on organic growth and addressing problem areas in the business.

“We remain committed to ensuring earnings enhancement through both organic and acquisitive growth, while improving the return on equity on a sustainable basis,” Da Silva added.

To ensure a more integrated business development focus, the group was restructured last year under one Jasco brand into three verticals, namely, ICT Solutions, Industry Solutions and Energy Solutions.

ICT Solutions contains the telecommunications and information technology businesses of Jasco and Spescom, as well as the telecommunications arm of associate M-Tec. Industry Solutions contains Jasco’s previous security business and the recently acquired power and energy solutions company Ferro Resistant Technologies, while Energy Solutions contains Jasco’s previous domestic products division, Lighting Structures and M-Tec’s electrical arm.

Da Silva said the group would continue growing its market share in the mature carrier space, a vertical from which it has already experienced increased orders from current and new clients owing to a more focused sales offering.

On the enterprise side, the benefits of a lower cost base owing to rightsizing in a tough market would flow through in the second half of the financial year, with the aim to extract value from those customers where spend is taking place.

The high level of annuity income in the company’s ICT solution Enterprise Communication through ongoing service level agreements was expected to continue to provide some protection in the medium term.

Further, the Energy Solutions vertical would continue to drive its strategy of bolt-on acquisitions to position Jasco as a tier-two solutions provider in transmission, distribution and balance of plant business.

Looking at new horizons, Da Silva said the company was also turning its focus to the mining sector.

“We have completed Jasco’s entry into the fire solution market and want to diversify into the mining sector. We will use our fire detection and power solutions as a way into the mining sector and have started marketing in this regard,” he enthused.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
 
Latest News
Updated 6 hours ago As industry prepares for the launch of South Africa’s digital terrestrial migration, the South African Communications Forum (SACF) hosted a workshop to determine the country’s readiness in terms of compliance of set-top boxes [STBs] and access to funding. The...
Higher Education and Training Minister Blade Nzimande
Updated 6 hours ago Higher Education and Training Minister Blade Nzimande has outlined plans for the development of a new health and allied sciences university into which the Medical University of Southern Africa (Medunsa) campus of the University of Limpopo, located in Ga-Rankuwa, will...
Communications Minister Yunus Carrim
Updated 6 hours ago The costs of communicating have to drop, Communications Minister Yunus Carrim said on Wednesday. "Clearly, the costs have to come down. It's not just in the interests of the poor and disadvantaged but the economy as a whole," Carrim said in a statement following a...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks