Pulse Investments netted profit of $165 million on revenues of $353 million for financial year ended June 2014 increasing 27 percent on $128 million earned in 2013. Revenues increased slightly by 2 percent from $346 million in 2013. The profit includes fair value gains on investment property amounting to $96 million versus $78 million in 2013.
The increase in profit was due to a combination of better cost management and revenue increases in some areas of operations and a fall in administrative and other expenses by 18 percent, from $211 million in 2013 to $173 million in 2014. Property rental income increased by 27 percent, from $30.9 million in 2013 to $39 million in 2014. Earnings per share increased from 46 cents to 59 cents, in 2014 compared to prior year.
Bank loan and overdraft debt declined $1.2 million from June 2013 to $26.3 million in 2014. Net cash generated by operating activities was down slightly from $27 million in prior year to $25.7 million, Cash in hand at year end stood at just $10 million.
The company’s shares were suspended last year by the Jamaica Stock Exchange for the late filing of audited financial statements as well as quarterly statements. While one can possibly see to some reasoning for the lateness of the audited accounts, there can be no excuse for the late filing of quarterly reports as they are not dependent on the audited figures.
There are a number of negatives for Pulse and its investors one is the low level of cash inflows compared with the revenue and profit, creating a problem for investors in not being able to get dividends. The real estate investment which consumed relatively large amounts of cash will need to throw off more cash going forward to make the stock more appealing to investors. The on again off again listing and suspension of listing and the very late financial reporting are very negative for the stock and reflects badly on management, including the directors.
Pulse 29% increased profits
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