Associates provide rich returns for Pan-Jam
Published:Friday | March 8, 2013 | 12:00 AM
Real-estate conglomerate Pan-Jamaican Investment Trust Limited increased its annual net profit 10 per cent to J$2.2 billion due to the performance of its associated businesses led by Sagicor Life Jamaica and Chukka Adventures.
Pan-Jam's core revenues at J$1.68 billion dipped 3.7 per cent year-on-year, but its bottom line benefited from the 17 per cent rise in its profit share from associated companies.
Pan-Jam owns and operates businesses across a range of industries. Through its subsidiaries and associated companies, the conglomerate engages in property development and management, banking, manufacturing, retail, trade, financial services and investment.
Sagicor Life's annual results have not been released to the market because of additional information requested by the Jamaica Stock Exchange.
However, Pan-Jam, whose December yearend coincides with the insurance company's, disclosed that it earned 32.7 per cent share of Sagicor's J$5.7 billion profit; 20 per cent share of the J$36 million earned from privately held Chukka which generated J$1.3 billion in revenue up to December; 20 per cent share of Hardware & Lumber's J$27 million profit, and a 50 per cent share of Mavis Bank Coffee Factory's $30.6 million profit. The Mavis Bank operation is held under parent company New Castle.
Pan-Jam's total assets amounted to J$21.4 billion with relatively few liabilities up to December 31, 2012, while total equity stood at J$16.6 billion. The company is expected to start the construction of its Courtyard/Marriott Hotel project in New Kingston this year.
During the year, the group increased its shareholding in Sagicor Life, acquired the 20 per cent holding in Chukka Caribbean Adventures Limited, a company within the tourism sector, as well as a 35 per cent stake in Caribe Hospitality Jamaica Limited, a property development company.
Through its subsidiary, Scotts Preserves Limited, the company acquired a 50 per cent holding in Mavis Bank Coffee Factory Limited (formerly Orchard Plantation Coffee Factory Limited), a company that processes and sells Jamaican Blue Mountain coffee. The effective date of this transaction was October 1, 2011.
Last year, Scotts Preserves Limited issued ordinary shares to New Castle Limited thereby diluting the group's shareholding from 100 per cent to 50 per cent, Pan-Jam's financials indicate. The coffee factory is co-owned by Jamaica Producers Group.