Cattle grazing on the 330-acre Grier House Farm owned by Dr. Henry Rainford, managing director of the Jamaica Livestock Association . Rainford is a majority shareholder of the livestock company, which posted a loss in 2006. - File

The Jamaica Livestock Association (JLA) lost $4.36 million in 2006, despite a small nudge upwards in revenues to $1.15 billion and notwithstanding a profitable fourth quarter, its year-end financial results show.

In fact, it was the final quarter's booking of $8.5 million in tax credits that pulled JLA into the black, resulting in net profit of $3.7 million for the quarter and containing the company's 12-month losses below $5 million.

Its earnings per share was a negative 7.59 cents for the year to November 2006 compared to the 22.5 cents in FY2005 when JLA made profits of $12.93 million from turnover of $1.13 billion.

Top revenue earner

The Henry Rainford-led company's top revenue earner, animal feeds, had a turnover of $622 million but made a loss of $565,000, JLA reported. Its other two segments, merchandise and poultry, which had combined revenue flows of $526 million, also made losses of just under $2 million.

The agricultural company, whose 7.5 per cent preference shares are listed on the Jamaica Stock Exchange, ended the year with an improved balance sheet, which reflected better management of receivables and a reduction in liabilities. The uncollected income from sales was slimmed by $13 million to $48.6 million, but payables, while also reduced by $38 million -- from $260 million in FY2005 to $222 million in the review year - were four times receivables.

A bank overdraft was also paid down by $11 million to $36.7 million, which helped slim current liabilities from $318 million a year ago to $277 million at balance sheet date.

During the year, the JLA paid out $37.4 million to service its liabilities its income statement shows, partially financed, it appeared, by borrowings.

Its balance sheet showed loans of $57 million, versus just under $12 million in 2005.

Overall, the JLA boosted its balance sheet position by 13 per cent, from $283 million to $322 million.

business@gleanerjm.com

Jamaica Livestock Association

Operating profit margin 3.04%

Revenue $1.15 billion

Net profit/(loss) ($4.4 million)

EPS (7.6 cents)

Current ratio: 1.15

Quick ratio 0.22