The Main Event Entertainment Group Limited, led by the Blair family, indicated in its year-end report that it is considering more high value services to add to the company’s portfolio of offerings in order to improve profit.
The Group, which plans, stages and manages events for corporate Jamaica also includes its own digital printing company and M-Style which is its subsidiary serving the wedding market.
Now, directors are saying they will continue to diversify as a way of introducing event management services which add to revenue.
“We have commenced a detailed review of direct costs aimed at re-assessing and refining cost management and control strategies.”– Main Event Entertainment Group
Stating that they were looking at leaner operations, they explained in this year’s report : “We have …recognised a need to expand our portfolio of higher-value service offerings and expect the re-alignment project to have a positive impact on margins.”
In the year ended October 31, 2019, revenue surged by almost one-third, but net profit was affected by administrative costs.
To manage costs, directors said in the report to shareholders that they are looking at introducing leaner operations in the near future.
The company, at year end saw a 29 per cent increase in revenue from J$1.4 billion to J$1.8 billion, climbing by J$400 million. However, net profit was J$97.3 million compared to J$94 million the year before.
Directors also said in the report that Main Event will be seeking better efficiencies.
The report signed by the Blairs said, “We recognise the importance of a lean cost structure and we have identified a need for a margin realignment project.
“We have commenced a detailed review of direct costs aimed at re-assessing and refining cost management and control strategies.”
Meanwhile, the directors praised the company’s performance over the 12 months which they said was due to efforts to build on “the strength of our core business…. we have successfully developed attractive new opportunities that have fostered growth.”
The Blairs said the company saw double digit gains in all core revenue categories with newer service offerings having contributed $177.501 million or 10 per cent of revenues to year end October.
While revenue climbed by $400 million, significant increases in operating costs affected the bottom-line.
Gross margins are down at the end of the fiscal year, attributed to increasing logistics, labour and third-part service costs.
Administrative and general expenses increased to $667.050 million from $527.723 million at the end of the prior year.
There were also increases in automobile and fuel expenses; staff related costs; depreciation; foreign exchange losses and expected credit losses (in accordance with IFRS 9).
The directors said that the company is seeking efficiencies in these areas.
Cash flows from operations improved by 163 per cent to $199.800 million from $76.118 million.