JSE-listed Jasco Electronics on Wednesday reported a plunge in earnings for the 2013 financial year as it entered the final year of its three-year restructuring programme.

The company posted a 98% fall in headline earnings a share to 0.3c apiece for the year ended June 30, compared with the 16.8c a share posted in the 2012 financial year.

The effect of one-off impacts, restructuring costs and the exit of several businesses during the year, with impairments and losses on the sale of assets amounting to R123-million, had resulted in basic earnings moving into the red at a loss of 77.9c a share, down from the 15.6c profit a share reported the year before.

Jasco posted a R107-million loss for the year under review, compared with the R20-million profit recorded in 2012.

Overall operating profit had been impacted by the group’s “corrective action” in exiting the Lighting Structures, Telecommunications Structures and the M-Tec units, Jasco CEO Pete da Silva explained.

“The decisive action taken during the year on nonperforming areas has positioned the new core business base for growth. In the first half of the 2014 [financial year], further restructuring costs will impact results, with the second half to show an improvement. The full benefits of the three-year restructuring programme will be seen from 2015.”

However, Jasco’s core operational businesses had improved and group revenue had increased by 16.3% to pass the R1-billion critical mass level for the first time during the year under review. Turnover reached R1.1-billion, up 16.5% from the R983-million the year before.

Jasco had also reported an expanded order intake, from R800-million two years ago, to R1.2-billion in 2013.

“The group has made good progress over the last two years, with the current year’s focus being on corrective action,” he said.

During the first two years of restructuring, Jasco had consolidated five business units, removed several management positions and one management level, deregistered or disposed of 13 legal entities, created a single Jasco brand from several disjointed brands, expanded into 11 new product and market segments and reduced customer dependency.