Sanya Goffe addressing the audience at the listing of Jetcon’s shares in March.
The company accounted $4.7 million in tax, in the first quarter but none in the second quarter, with the shares listing on the junior market in March, this year. Earnings per share ended at 12 cents versus 8 cents for the June quarter and 21 cents for the six months to June compared with 12 cents for 2015.
Having been listed on the junior market our profit will be tax free for 5 years. With just half the year completed, profit is 9 percent off from the after-tax profit of $40.3 million reported for the full 2015 financial year and the company seems poised to surpass the 2015 earnings in the September quarter, if recent trend for 2016 to date continues.
Revenues climbed 39 percent for the quarter to $194.9 million and 45 percent for the six months to $342.9 million. Gross profit margin declined to 18.54 percent from 19.24 percent in the quarter and 19 percent for the six months versus 18.38 percent in 2015. Sales are usually greater in the second half of the year than in the first half.
In a release by directors accompanying the financials, the company stated that “Administrative and other costs rose by approximately $5.2 million due to listing on the market which accounted for $2.5 million while salaries adjustments accounted for $2.7 million of the increase. Part of the increase in salaries is directly tied to the increased sales that took place.”“Sales in June were the highest for the half year with sales for July is ahead of June in volume and sales revenues. Bookings which have been ahead of 2015 for each month this year continues to be positive.”
Inventories stood at $236 million at the end of June, compared to $125 million in June 2015 and $84 million at the end of December last year. Supplies peaked in June and is slated to start to decline by the end July onwards to the end of the year as deliveries to customers exceed new inflows of cars. Payables increased as a result of increased purchase of motor vehicles.
