The Jamaica Stock Exchange junior market listing KLE group, expects to sign its first Tracks & Records franchise contract this year but remains silent on returning a profitability.
The outlook for the loss making group which shed its FICTION night club and Odyssey gaming lounge joint venture is positive according to CEO Gary Matalon in the annual report released this week.
“We have already been approached with offers to franchise the Tracks & Records brand and expect that the first set of agreements will be signed in 2015,” stated Matalon in his CEO’s message in the annual report about plans to enter USA.
The company recently completed its operations documentation which “meticulously” outlines every aspect of the business and training material and programs to give the franchisees the best chance for success.
The group made a $38.8 million net loss in 2014 compared to $55.8 million a year earlier. The out turn for the March 2015 quarter reverses the trend of lower losses in 2014 as KLE made a loss of $21.7 million from revenues of $49 million compared with $12.66 million in 2014, form revenues of $68.7 million. The financial position looks grim with equity of just $2.3 million a wipe out of from the $50 million it had in March 2014. Borrowings amount to $43 million, payables are at $75 million, receivables amount to $24 million and cash funds $7.5 million.
The group also welcomed that its latest shareholder Joseph Bogdanovich, chairman and CEO of Downsound Records which acquired 23 per cent of KLE with CEO Gary Matalon holding 16 per cent.