CAC 200 Limited (CAC) reports a 7% increase in Net Profit for the Six months ended April 2017.
CAC 2000 Limited (CAC)
Results for the Second Quarter ended April 30, 2017:
Revenues for the Second quarter increased by 6% to $265.64 million compared to $251.57 million for the same period the prior financial year. CAC revenues for the six months increased 18% to $567.51 million relative to $481.32 million for the comparable period in 2016. Cost of Sales also increased, by 22% for the period (2016: $181.97 million). Consequently, Gross Profit improved $21.36 million or 12% to $203.33 million (2016: $181.97 million).
The Company had a 1% increase in Total Expenses for the quarter closing at $69.16 million compared to $69.56 million in 2016. For the six months ended April 2017 there was a15% increase in Total Expenses to $146.87 million (2016: $127.94 million). This was as a result of an 34% upward movement in Selling & Distribution Expenses to $18.71 million (2016: $13.94 million) as well as a 12% increase in General Administration to $128.16 million (2016: $114 million). The increase in Selling & Distribution Expenses “arose from increased commissions (paid on sales realized),advertising and warranty and guarantees” while the increase in General Administration Expenses “arose from salary related payments (performance incentives and new hires), consultancy services for risk review, coaching and implementing new Human Resource and Customer Relationship Management systems.”
There was a $2 million increase in in Other Income to $2.12 million from $119,000 reported for the same period the prior year due to tax credits booked. Consequently, once Other Income and Total Expenses are considered, Profit before Taxation and Finance Cost grew by 8% to $58.57 million (2016: $54.15 million).
Net Finance Costs has increased significantly for the period in review to $7.15 million (2016: $3.81 million). This was as a result of reduction in cash by lawsuit payout and also a reduction in interest income.
Profit Before Taxation increased by 2% for the six months and closed at $51.43 million. There was a tax credit of $222,812 compared to a tax charge of $1.86 million in the same 2016 period. Profit for the six months the company booked a 7% increase in Net Profit to $51.65 million (2016: $48.47 million). Net Profit for the quarter was reported at $27.49 million (2016: $21.76 million), representing a 26% increase.
Earnings-per-share (EPS) for the six months totaled $0.40 compared to $0.38 in 2016, while for the quarter the EPS amounted to $0.21 (2016: $0.17). The twelve months trailing EPS amounted to $0.11. The number of shares used in our calculations is 129,032,258 units.
“We are on track to achieve our major goals for the year, i.e. to continue growing sales and profits, build back cash reserves, settle lawsuit interest payments, complete Risk Assessment study by PricewaterhouseCoopers, and to implement our new cloud based customer relationship management system.
Balance Sheet Highlights:
As at April 30, 2017, the Company reported total assets of $793.05 million, a 3% decline when compared to $820.53 million a year ago. This was as a result of a 92% decrease in Inventories to $25.69 million, Cash and Cash Equivalents which declined 86% to $$110.02 million (2016: $770.57 million). The company stated that this was due to the continued recovery from the payments of US$372,100 and J$7.65 million for lawsuit damages in December 2016. There was however a 45% increase in Trade and other receivables due to increased billing and the slow processing of Braco project final payments.
Shareholders’ Equity as at April 30, 2017 was $374.01 million compared to $382.30 million a year ago. This resulted in a book value per share of $2.90 compared to $2.96 in 2016.
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