Q2 profit up 26% for CAC 2000

Air-conditioning contractor, CAC 2000 enjoyed a moderate 5.6 increase in revenues for the second quarter to April this year to $266 million, but profit climbed 26 percent after tax to $27.5 million.
Profit for the half year net of tax rose 6.5 percent to $51.6 million from an increase in revenues of 18 percent to $568 million. Earnings per share was flat at 40 cents for the half year but rose from 18 cents to 21 cents for the second quarter.
Profit before taxation just inched up in the half year to $51.4 million from $50.3 million in 2016 while the second quarter moved from $23.6 million to $27.3 million.
Gross profit margin for the latest quarter dipped to 37.25 percent from 38.3 percent in 2016 and to 35.8 percent for the half year to April this year from 37.8 percent last year. Administrative and other expenses rose to $147 million from $128 million for the half year and from $69 million to $70 million for the quarter. Interest cost dipped a tad in both the quarter and the half year ending at $7.8 million for the six months period and $4 million for the quarter.
Current assets amounted to $742 million including cash of $110 million and current liabilities of $261 million which includes accrual of $68 million for court awarded damages and provision for legal cost, while borrowed funds stood at $158 million. The issue is that the provision included for interest is far too low and when agreed to, will end up hitting the company’s profit by a tidy sum.
The stock traded at $7.50 on the junior market of the Jamaica Stock Exchange on Tuesday and has a PE ratio of 10 times earnings well below the Junior Market average of 13. The company results suggest that the business is at a fairly mature stage.

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