August 12, 2022
For the six months ended June 30, 2022:-
Figures are quoted in United States dollars (except where it is indicated otherwise):
Transjamaican Highway Limited (TJH), for the six months ended June 30, 2022, reported a 24% increase in revenue which totalled US$30.29 million, relative to US$24.38 million in the corresponding quarter last year. TJH noted that the increase was “attributable to the significant improvement in traffic following the lifting of the measures implemented to combat the spread of the COVID-19.”
Other gains amounted to US$54,000 for the period (2021: US$1.53 million). The Company noted, “comprised primarily of the gains produced by financial market operations and resulting financial income on investment instruments and the change in value of equity investments. Under the Concession Agreement, the Company also has the right to collect revenues generated from commercial exploitation of the areas surrounding the Toll Road, including gas stations and related ancillary services, electricity and telecommunication cables and fiber optics.”
The decrease in other gains was due to, “foreign exchange losses emanating from the revaluation of the 8.0% (JMD) Cumulative Redeemable Preference Shares for the quarter and was offset by slightly higher interest earned from the investment of the Restricted Cash.”
For the six months ended June 30, 2022, operating expenses totalled US$19.24 million versus the US$16.44 million in the comparable quarter last year, a 17% increase year over year. “the increase was primarily due to higher amortization of intangibles associated with the traffic recovery for the quarter and higher Operator’s fee associated with the movement of the exchange rate and CPI. Other increases included costs relating our new My t-Tag app and associated marketing campaign.” as per TJH.
Administrative expense rose 21% to US$662,000 (2021: US$549,000).
Finance cost for the six-month period was US$7.43 million when compared to US$7.66 million for the corresponding quarter last year. According to management, the decrease was due to “keeping with lower interest payments for the secured notes since principal is being repaid on a quarterly basis. ”
Profit before taxation closed at US$3.02 million versus a profit before taxation of US$1.26 million as at June 2021.
The Company report taxation of $986,000 for the six months ended June 30, 2022 (2021: nil). This resulted in a net profit of US$2.03 million a 62% growth on the US$1.26 million for the corresponding period last year. Net profit for the quarter closed at US$1.36 million (2021: US$681,000).
Consequently, earnings per share (EPS) amounted to US0.0002 cents for the quarter ended June 30, 2022 relative to US0.0001 cents last year. For the quarter, EPS amounted to US0.0001 cents (2021: $0.00005 cents). The twelve months trailing amounted to US0.00038 cents. The number of shares used in this calculation was 12,501,000,000 shares. TJH traded on August 11, 2022 at J$1.33 while TJHUSD closed at US$0.0089 with a corresponding P/E of 23.01 times.
Balance Sheet at a Glance:
As at June 30, 2022, total assets closed at US$308.89 million relative to US$316.99 million the prior year. This decline was attributed to the 6% decrease in ‘Intangible asset’ which ended at US$218.77 million (2021: US$232 million), “This decrease resulted primarily from further amortization of the Intangible asset, a reduction of the deferred tax asset and was offset by an increase in restricted cash.” as per TJH . The movement was offset by a 106% increase in ‘Cash and bank balances’ amounting to US$8.36 million (2021: US$4.07 million).
Shareholders’ equity totalled US$56.16 million (2021: US$58.30) resulting in a book value of US$0.0045 (2021: US$0.0047).
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