Jetcon Corporation Limited focused on containing costs and paying down debt in a year marked by falling revenue.
For the year ended December 31 2020, the used motor vehicle dealer recorded a 40 per cent decline in revenue, which moved from JM$1.03 million at year end 2019 to JM$629.28 million in 2020.
Jetcon owns a 60.78 per cent interest of St. Andrew Investments Limited and engages in the importation and sale of motor vehicles, motor vehicle parts, and the servicing of vehicles.
The company listed on the Junior Market of the Jamaica Stock Exchange in March 2016 and benefits from associated tax incentives.
With cost of sales — which includes purchase price and all costs specifically relating to bringing the vehicles to location and in a condition for sale — still high at JM$548.48 million in the year (2019: $890.25 million), gross profit came out at JM$80.79 million at year end, compared to JM$135.67 million in 2019.
Meanwhile, total expenses, including selling, marketing and administrative costs, remained relatively stable at $JM65.12 million, compared to JM$69.37 million in 2019.
Net losses for the company at year end 2020 were JM$6.73 million compared to earnings of JM$60.30 million the year before. Loss per share at for the year ended at JM$0.012 cents compared to earnings of JM$0.103 in 2019.
In notes attached to the financials, the company stated that the pandemic and the measures to control its human impact have resulted in disruptions to economic activity, business operations and asset prices.
Additionally, it said government-instituted measures to reduce the spread of the virus, including nightly curfews, quarantines and restrictions on large public gatherings, have had adverse economic effects on the financial operations of some stakeholders.
This, in turn, has adversely impacted the company as it experienced a fall in revenue of almost 40 per cent in the period under review.
“Although, it may take a while before business activities in the country return to full normalcy, having regards to all the precautionary measures being taken, management maintains that the going concern assumption remains appropriate and the company is not expected to be significantly impacted by the COVID-19 pandemic,” the notes outlined.
At year end, total assets for Jetcon decreased to JM$649.94 million, less than JM$680.68 million at year end 2019.
Auditors noted that at the reporting date, December 31, 2020, inventory amounted to approximately JM$392 million, representing 60 per cent of the company’s total assets. Over 97 per cent of inventory comprised motor vehicles.
They also said that the company’s revenue has been adversely affected as a result of the impact of the COVID-19 pandemic. Accordingly, the carrying value of year-end inventory has been assessed in relation to ‘net realisable value’.
At the same time, total liabilities remained low at JM$109.37 million, falling from JM$133.34 million the year before. Finance charges climbed during the year to JM$5.99 million, compared to JM$3.65 million in 2019.
Long-term loans for Jetcon comprise JM$42-million loan received in September 2019 from Jamaica Money Market Brokers and repayable over 48 months. No new loan was taken in 2020, while JM$21.48 million in total loan payments were made during the year, compared to JM$2.9 million in loan payments the year before.
In total, liabilities and stockholders equity combined was $649.94 million at year end compared to $680.68 million in 2019. Total shareholders equity in December 2020 was 540.58 million , slightly down from $547.34 million in 2019.
Cash and cash equivalents at the end of 2020 rose to JM$26.36 million, up from JM$10.66 million the year before.