http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.28Change: -0.07
R/$ = 10.66Change: -0.09
Au 1296.29 $/ozChange: -1.27
Pt 1479.50 $/ozChange: 0.00
 
 
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 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|Fire|Flow|ICT SOLUTIONS|Industry Solutions|Lighting|Road|Security|Spescom|Security|Cable Manufacturer|Capital Management|Communication Technology|Communications Technology|Energy|Flow|Mining|Product|Products|Security|Pete Da Silva|Power|Security|Cable|Communications Technology|Information Technology
SECURITY|Cable|Fire|Flow|Lighting|Road|Security||Security|Energy|Flow|Mining|Products|Security|Power|Security|Cable|
security|cable|energy-company|energy-solutions-company|enterprise-applications|ferro-resistant-technologies|fire|flow-company|ict-solutions|industry-solutions-company|lighting|road|security-company|spescom|security-facility|cable-manufacturer|capital-management|communication-technology-industry-term|communications-technology-industry-term|energy|flow-industry-term|mining|product|products|security-industry-term|pete-da-silva|power|security-person|cable-product|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 (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 5 hours ago Nigeria-focused oil and gas explorer Oando Energy Resources (OER) on Wednesday announced that it had completed the acquisition of the Nigerian upstream oil and gas business of New York-listed ConocoPhillips for a total cash consideration of $1.5-billion as well as a...
Updated 5 hours ago The disciplinary hearing of telecommunications giant Telkom’s suspended CFO Jacques Schindehütte was set to resume next Wednesday. Telkom said it hoped the hearing would result in a definitive resolution on the matter of Schindehütte’s personal conduct after a...
Updated 6 hours ago While unauthorised expenditure by South Africa’s municipalities has declined year-on-year, irregular expenditure has recorded a R2-billion increase as municipalities failed to follow legislated procurement procedures, the latest Auditor-General South Africa audit...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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