Jetcon Corporation Limited (Jetcon) Annual General Meeting held June 14, 2017 at the Knutsford Court Hotel.
The forum began with a brief introduction from Mr. John Jackson, Chairman who also welcomed the audience to this the first Annual General Meeting for the company since listing. He stated that Jetcon had a great year in 2016 since listing on the stock market in March 2016 and the performance has reflected in the movement of the stock from the initial listing price of $2.25 to $14.84 today. Mr. Jackson stated that the advent of the Junior Market will revolutionize Jamaica and increase growth across the country with about four or five companies seeking to currently list on the exchange. He stated that, “Jetcon’s success was due to the implementation of capital from one end and the expertise of the various private entities.” The Chairman highlighted that the fluctuations in the exchange rate of the Japanese Yen and the US dollar meant that the company may face some foreign currency risk as the Yen fluctuates regularly and may affect margins. He however noted that, “the company will grow to become a major enterprise as the company is only a small part of the overall imported used vehicles market.” He closed the introduction by saying, “May God bless Jamaica and may God bless all associated with Jetcon.”
Mr Andrew Jackson, Chief Executive Officer (CEO) then took the floor and stated that he was approached by a customer who expressed her appreciation of the service that was delivered to her when she bought her first car 13 years ago. He further noted that these stories are what have made Jetcon a very strong performer in the used car space as the company puts together the best sales, administrative and customer service team. He stated the company will continue to pride itself on customer service and it brings the company satisfaction to see its customers happy. He further stated that, “Jetcon has only 5%-7 % of the imported used car market and there is room for growth is very much present. He maintained that they are in a competitive market but is confident that with the current values and the hard work of directors and staff, the company will continue to work twice as hard to maintain its profitability and increase investor value.
Mr Andrew Jackson indicated that the company is currently seeking space to expand its inventory and increase profits. The Chairman also interjected to state that he believes that all things being equal the increase in inventory should see similar increases in sales. The Chairman highlighted that this has been the current trend with the company and it should continue as the company expands. Both the Chairman and the CEO stated that they prefer a steady predictable growth, Mergers or Acquisitions is not being thought about for the near future.
Key Financial Performance For FY2016:
- Revenues for the financial year end increased by 64% to $857.04 million compared to $523.25 million for the last financial year. Cost of Sales increased by 62% to $703.86 million from $435.65 million for the 2015 financial year end. As a result, Gross Profit increased by 75% to $153.19 million (2015: $87.60 million).
- Other Income increased by 21% and amounted to $1.23 million for the 2016 financial year. As a result, Total Operating Income increased by 74% to $154.42 million (2015: $88.61 million).
- Total Expenses has increased by 35% to $51.25 million (2015: $38 million). This was as a result of a 117% increase in Selling and Marketing Expenses from $6.03 million in 2015 to $13.08 million in 2016. Administrative and Other Expenses for the financial year has increased by $9.05 million or 33% to $36.32 million while Finance Costs has declined by 61% to $1.85 million. For the quarter, Total Expenses has increased by 73% and amounted to $13.80 million.
- Consequently, Profit before Tax increased by 104% from $50.61 million to $103.17 million. There was a tax charge of $4.18 million in 2016 relative to $10.26 million recorded for the prior year.
- As a result, Net Profit for the year was reported at $98.99 million, an increase of 145% on the previous year’s total of $40.35 million.
- EPS for the year totaled $0.51 relative to $0.21 for the 2015 financial year. The number of shares used in our calculations is 194,500,000 units.
- Resolution to remove the maximum age for director appointment from 75 years to 70 years.
- That each of the authorised ordinary shares in the capital of the Company be subdivided into 4 units each for every 1 that currently exists, resulting in the authorised capital being increased to 1,200,000,000 ordinary shares of no par value.
- That the issued capital be subdivided into 3 shares for every one currently issued, effective for shareholders on record at the close of business on June 26, 2017.
- The re-appoinment of all Directors.
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