Singh
Al Edwards, Financial Editor
FURNITURE AND appliance retailer Courts (Ja) headed by managing director Hayden Singh has posted positive financial results for the three months ended December 2004, despite its parent company based in the U.K. having to declare bankruptcy and close its U.K. operations.
Unaudited accounts for the period under review shows a turnover of $2.3 billion, a 13.2 per cent increase on 2003's corresponding period's figure of $2 billion. This went some way in assisting the company's operating profit with Courts (Ja)) posting $604.7 million a 29 per cent increase on the previous year's $476.3 million.
IMPRESSIVE PROFIT
Courts' net profit was indeed impressive, bearing in mind the fact that the company underwent the ravishes of Hurricane Ivan during this three-month period. The company posted a net profit of $297.6 million, representing a 33 per cent on last year's $222.9 for the corresponding period. There was perhaps some good news for stockholders with a rise in Earning per Stock Unit from 2003's 9.30 cents to 12.42 in 2004.
Courts operates in 11 islands in the Caribbean with 92 stores and just under 3,000 employees. In Jamaica Courts has 37 stores with 850 employees and is the jewel in the Caribbean's crown. In fact, it is the most profitable in the Carib-bean group.
Speaking exclusively with the Financial Gleaner Mr. Singh said, "We were undoubtedly affected by Hurricane Ivan and if you consider that in the opening weeks of October many of the parishes were without electricity we still managed to stage a very good recovery by very aggressive advertising and promotions. As you can see we managed to claw our way back with turnover going up by 13 per cent and profit before tax increasing by 34 per cent. We also managed to maintain a tight control on expenditure. We are proud of the fact that our hire purchase portfolio has gone up by $600 million to $6.1 billion. What we are seeing is a very strong balance sheet. Up until Ivan, we were on course to have a very good year indeed."
Mr. Singh surmised that all indications are that the country's economy is on track to perform well for fiscal year 2005/2006 with the
creation of even more jobs, which bodes well for Courts.
RISK MANAGEMENT PROGRAMME
Stores in both Ocho Rios and Savanna-la-Mar underwent
looting in the aftermath of Ivan, and with the soaring crime rate currently plaguing Jamaica, it is a cause of concern for the country's leading furniture and appliance retailer.
"What we have put in place is a good risk management programme and it paid off after the Hurricane because by the following Thursday, all our stores were fully operational.
Although Courts has been considering going into micro financing, Mr. Singh insists that that will not take place any time soon, instead it will focus on core business which is retailing.
"It is our policy to support local manufacturing and about 70 per cent of our furniture is made by local craftsmen. We have spent around US$25 million supporting the local sector. By now everyone is aware of the fate that befell our parent but I will be concentrating on building shareholder value and going after even more sales and so greater market share, " Mr. Singh concluded.
