http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.57Change: -0.05
R/$ = 12.17Change: 0.15
Au 1171.95 $/ozChange: -6.60
Pt 1078.00 $/ozChange: -0.50
 
 
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
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters 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
 
 
 
Cable|Fire|Flow|Lighting|Mining|Road|SECURITY|Sustainable|Energy|Flow|Product|Products|Service|Solutions|Power|Cable
Cable|Fire|Flow|Lighting|Mining|Road|SECURITY|Sustainable|Energy|Flow|Products|Service|Solutions|Power|Cable
cable|fire|flow-company|lighting|mining|road|security|sustainable|energy|flow-industry-term|product|products|service|solutions|power|cable-product
© 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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
Updated 7 hours ago Strike action against South Africa’s second-biggest mobile network MTN has not ended yet, the company confirmed on Tuesday. Reports in weekend newspapers indicated that MTN and the Communication Workers Union (CWU) both compromised on demands to end a strike among...
The Competition Tribunal hearings into telecommunications giant Telkom’s buy-out of information and communication technology (ICT) firm Business Connexion (BCX) would convene from July 30 to August 7. This followed the Competition Commission’s approval of the...
As the Department of Telecommunications and Postal Services (DTPS) outlined its efforts to rationalise the State-owned companies (SOCs) that report to it, confusion had shrouded the deliberations of the governing parliamentary portfolio committee as there were more...
Article contains comments
More
 
 
Latest News
Updated 39 minutes ago Gauteng Premier David Makhura recommitted the provincial government’s support to the revival of Gauteng’s manufacturing base, telling the second yearly Manufacturing Indaba on Tuesday that policymakers would drive legislation that created an environment in which the...
Updated 4 hours ago The Competition Commission has reached a settlement agreement with Japanese shipping liner Nippon Yusen Kabushiki Kaisha (NYK) for contravening the Competition Act in the transportation of motor vehicles to and from South Africa by sea. This settlement followed the...
Updated 4 hours ago State-owned aerospace and defence technology conglomerate Denel on Tuesday launched a book to demystify defence technology to South African learners and attract them to the defence industry’s career opportunities, while creating greater awareness about innovation and...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96