PULS guest suites and guest rooms 50% completed

February 20, 2018

Pulse Investments Ltd Annual General Meet (AGM) was held today, February 20, 2018, at the company’s head office at 38a Trafalgar Rd. After the usual salutations, Kingsley Cooper, Chairman, went straight ahead into the financial highlights of the recent year ended June 30, 2017.  According to Chairman Cooper: ‘Pulse Investments Ltd continued to record steady gains, reflecting a trend that has held for the past five to six years. Gross Income before taxation was up 9.7% to $488.6 million. Profit before taxation was up 12.3% to $268.4 million, an increase of $29.33 million over last year’s figure. However, profit after tax was down by $100.7 million or 26.7%.’

He attributed the reduction in profit after taxation to a considerable fall in Pulse tax asset from 2016. Tax gain in 2016 was $138.5 million, resulting from a Recognized Motion Picture/Television Producer Incentive. Tax gain in 2017 was down 93.9% to a mere $8.44 million. As a result, EPS declined from $0.23 (2016) to $0.17 (2017).

Kingsley Cooper reported that the Pulse guest suites and guest rooms at the Stony Hill and New Kingston locations were more than 50% completed. He pointed out that by financial year-end June 2018, forty-nine units are expected to be completed with the other nineteen scheduled to completed the following year.

Recently PULSE with-drew a rights issue, choosing instead to finance its expansion by debt financing. Kingsley claimed the decision was influenced by shareholder concern about dilution and the cost of funding. He was keen to point out that the chief liability of $149.7 million due to related party has a due date of five years.

In response to the flat revenue emanating from the model agency line of business, the chairman told shareholders that a new strategy is currently being put in place to increase revenue from that line of business. He also hinted at a nation-wide talent search throughout high schools.

Advertising entitlements, which represent over 22% of total assets, or $567.24 million as reported in the financial statements is believed to be worth approximately $911.32 million by the company’s directors. The chairman explained that the discrepancy between what is reported as advertising entitlement and what it is believed to be worth is due to IFRS accounting standards. Mr. Cooper explained that the entitlements can be sold-off/monetized if warranted.

 

2018-02-20T20:29:13+00:00