Feb 2013 Financial News

Hardware & Lumber Posts Pre-Tax Profits over 300% For Year Ending 2012

Feb 28, 2013

The Board of Directors of Hardware & Lumber Limited has approved a dividend of 12.5 cents per stock unit for the year ended December 31, 2012, being the first declaration in five years. This comes against the background of improved performance, as outlined in its Shareholders’ report for 2012, during which the company realized profit before tax of 100.5 million.

Of note, the reduction in the corporate income tax rate for unregulated entities, from 33 1/3% to 25% which became effective 1 January 2013 triggered a one-off, non- cash, tax expense of $39.2 million to reduce the previously recorded deferred tax asset to reflect the new tax rate. Notwithstanding the unusual tax charge, net profit for the year was $27.2 million, representing a 325% increase in earnings per share to $0.34 compared to $0.08 in the previous year.

Total revenue was $6,284.1 million representing a 3.8% increase over the previous year. Gross margins improved from 25.8% to 25.9% despite increased cost brought on by the ongoing devaluation of the Jamaica Dollar. All three reporting segments – Wholesale, retail and Agriculture recorded improved results. Retail and Agriculture delivered a 142.1% and 28.0% improvement in pre-tax profits respectively while the losses in Wholesale segment reduced by 2.9%.


Source:
Jamaica Stock Exchange
Thursday Februry 28, 2013

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