Jasco, which is in the final year of its restructuring, says headline earnings per share will be higher for the first half of the year, while earnings per share will drop by as much as 57%.
The news did not affect its share price, which closed unchanged at 79c, giving the company a market capitalisation of R115.7 million.
The group explains the lower earnings per share are mostly due to its disposal in the prior period of its Midrand property and the loss on the sale of Lighting Structures. Headline earnings, seen as a core indicator of performance, will gain between 0% and 10% when it reports results on 18 February, it says.
The group has been selling out of non-core businesses and is monitoring others that are not performing well. "Although the current period was still impacted by restructuring costs, the improvement in the group's earnings quality in the last year of restructuring is gratifying."
Jasco says it continues to execute its growth strategy. It adds its three-year turnaround programme is drawing to a close and associated costs will only continue until the next quarter. CEO Pete Da Silva has said the group is looking for niche agencies and will mostly acquire in its energy and industry portfolios, although it will be cautious.
The group had previously been restructured into three verticals from four: information and communication technology (ICT) solutions, industry solutions, and energy solutions.
For the half-year to December, earnings per share are expected to be between 47% and 57% lower, coming in at between 4.3c and 5.4c a share. Headline earnings per share should come in at between 5c and 5.5c, it notes.
A year ago, the group reported revenue 12% higher, at R552.1 million, while profit after tax increased 21%, to R13.6 million. Profit attributable to ordinary shareholders was 57% up, to R14.2 million.
Earnings per share were up 56%, to 10.1c, but a net negative headline earnings adjustment of R7.2 million decreased headline earnings by 27%, to R7.1 million.
Jasco explains, in the six months to December, most of its operating entities - apart from the security business - performed "solidly". Its ICT carrier unit "delivered a strong profit performance" thanks to improved efficiencies and the sale of Telecom Structures, which took place in the second half of the 2013 financial year.
The group adds its ICT networks and enterprise businesses are focusing on growing the top line and containing costs. It has already taken corrective action in the energy and industrial unit in its security unit, which has aligned its cost base with revenue.
Jasco adds the electrical manufacturing business unit, also part of the energy and industry vertical, grew profits "strongly" in the first half of the year.
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