Mar 2012 Financial News

Pan Jam profits up for FY2011

Mar 15, 2012

Pan-Jamaican Investment Trust has reported net profits of J$1.9 billion for financial year ended December 2011, an 18.75 per cent increase on the J$1.6 billion it recorded the previous year.

While operating expenses increased during the period, growth in revenues lines more than offset those increases, the company said in a market filing.

Last year Pan Jam merged operations with First Jamaica Investments Limited in an effort to eliminate market confusion and eradicate the duplication of expenses such as audit and stock exchange listing fees.

Investment income grew by 66 per cent to J$246 million from J$148 million the previous year, according to the report to shareholders filed with the Jamaica Stock Exchange (JSE).

For the 2010 financial year, the company reported that it recorded foreign exchange translation losses of J$62 million. However, during 2011 there was a turnaround with gains of J$8 million.

Pan Jam, which is engaged in, among other services, property development and management, said income from property increased by J$121 million or 16 per cent to J$1.4 billion.

That figure, it said, includes a 13 per cent increase in rental income to J$1 billion and a J$300 million property revaluation gain.

During the review period there were also upward movements in operating costs, the result of added energy costs combined with inflationary increases in other expense categories. However, Pan Jam said the increase in property income was more than enough to compensate for those movements.

It also reported that the property segment enjoyed overall occupancy levels exceeding 98 per cent for the 2011 financial year.

Total operating expenses for the year amounted to J$935 million compared to J$780 million, an increase of 20 per cent on the previous year’s.

Contribution from shares in Pan Jam’s associated companies was also positive, increasing by J$199 million to $1.37 billion from the J$1.2 billion recorded in 2010.

With a 20 per cent investment in the GraceKennedy-owned Hardware & Lumber, Pan Jam said that some progress has been made at that outfit, but more focus needs to be given to the profits drivers of the business, and eliminate unprofitable locations and business lines.

The Walkerswood Group also contributed J$12 million to the company's bottom-line during the year.

"The group continues to build new and existing markets while attempting to satisfy customer demand," said Pan Jamaica in its report to shareholders on its investment in Walkerswood.

"We are pleased with the progress of this investment and delighted to see our Walkerswood Busha Browne and Jamaica Joe products gaining increased traction in the export market," said the report signed by chairman Maurice Facey and president and chief executive officer Stephen Facey.

The Mavis Bank Coffee Factory, Pan Jam’s most recent acquisition, contributed J$18 million to group profits.

The company's total assets as at December 31, 2011 amounted to J$15.9 billion, compared to $15.2 billion at December 31, 2010.

Pan Jam is a multi-faceted holding corporation that owns and operates businesses across a range of industries. Through its subsidiaries and associated companies, it engage in property development and management, banking, manufacturing, retail , trade, financial services and investment.

The company, which last traded at J$57.20 on the JSE, is expected to start the construction of a Marriott Hotel in New Kingston this year.


Source:
sabrina.gordon@gleanerjm.com
Jamaica Gleaner
Thursday March 15, 2012

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