May 2014 Financial News

Jamaican profit props up Trinidad-based Neal and Massy despite devaluation

May 14, 2014

NEAL and Massy saw its pre-tax profit from its Jamaican operations jumped 65 per cent in the first three months of 2014.

What’s more, the Trinidadbased conglomerate would have seen its profit fall by some TT$4 million ($68 million), or two per cent, rather than inching up by one per cent ot TT$197 million.

The group operates IT firm, Illuminat, and shopping discount card service, Magna Rewards, along with its cooking gas business under the Gas Pro brand and its distribution company NMH Trading.

Its Jamaican operations saw TT$13.3 million ($226.4 million) in profit before tax posted for the three months to March 31 reflected an 82 per cent rise in earnings, in Jamaican dollar terms, when accounting for devaluation.

Revenue in Jamaica climbed 21 per cent from TT$163 million in the three months to March 31, 2012, to TT$197 million during the review quarter.

The conglomerate’s revenue climbed 14 per cent to TT$2.6 billion for the quarter under review, while its share of profit of associates and joint ventures fell from TT$15 million during the three months to March 31, 2013, to TT$13.1 million during the quarter under review.

“Insurance, logistics and investment properties were the only units for which profit before tax declined in the first half of the financial year (which runs to the end of September 2014),” wrote Arthur Lok Jack in his chairman’s statement accompanying the financial statements.

“Our Barbados operations continue to be adversely affected by the challenging economic conditions in that country. Revenues from our subsidiaries in Barbados declined by four per cent, while profits from subsidiaries and associate investments declined by 15 per cent.”


Source:
Jamaica Observer
Wednesday May 14, 2014

http://www.jamaicaobserver.com/business/Jamaican-profit-props-up-Trinidad-based-Neal-and-Massy-despite-devaluation