JETCON reports 34% decrease in year end net profits

March 02, 2020

Jetcon Corporation Limited (JETCON), for the twelve months ended December 31, 2019, reported a 12% decline in turnover for the twelve months to $1.03 billion (2018: $1.16 billion), while for the fourth quarter revenues rose by 4% to $278.68 million in 2019 from $269.18 million in 2018.

Cost of sales also decreased by 11% to $890.25 million (2018: $999.17 million) and as a result gross profit  decreased by 16% to $135.67 million compared to $162.30 million in 2018. Gross profit for the fourth quarter ended December 31, 2019 amounted to $10.90 million (2018: $10.46 million).

Other operating income for the year ended December 31, 2019 amounted to $1.14 million (2018: $935,257). As such, Total Operating Income totalled $136.82 million (2018: $163.24 million).

Total Expenses increased by 7% to $76.51 million (2018: $71.29 million). Selling and marketing expenses decreased to $22.71 million (2018: $23.57 million), while administrative and other expenses recorded an increase of 12%, closing at $50.15 million (2018: $44.95 million). Finance costs closed the period at $3.65 million, a 32% increase when compared to $2.78 million  the prior year.

Consequently, profit before taxation amounted to $60.30 million relative to $91.94 million in 2018 representing a 34% decrease year-on-year for the period.

There was no tax charge for the year ended December 31, 2019 relative to a tax charge of $60,000 for 2018.

As a result, net profit for the period amounted to $60.30 million relative to $91.88 million. For the fourth quarter a net profit of $13.98 million was recorded versus a loss of $1.64 million in last year.

Total comprehensive income amounted to $60.29 million (2018: $91.94 million).

As such, the earnings-per-share for the year amounted to $0.10 relative to $0.16 last year. Earnings per share for the quarter totalled $0.024 (2018 loss per share: $0.003). The number of shares used in our calculation is 583,500,000. JETCON’s last traded price as at March 02, 2020, was $1.40.

Balance Sheet Highlights:

The company, as at December 31, 2019, recorded total assets of $679.68 million, an increase of 21% when compared to $562.86 million recorded last year. This increase was mainly attributable to a 166% increase in ‘Receivables’ to $87.156 million ($32.81 million), as well as a 66%  increase in ‘Property, Plant and Equipment’ to $135.73 million (2018: $81.90 million).

Total Stockholders’ Equity as at December 31, 2019, closed at $547.34 million (2018: $504.55 million) resulting in a book value per share of $0.94 per share compared to $0.86.

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