CMP Industries Limited grew net profit by 18 per cent in its nine months to December 2007, substantially erasing, but not eliminating, losses accumulated on its balance sheet.

The company, in its first earnings report under new owner Castelo Holdings, reported net profit of $5.2 million off $17 million of revenues, which was carried to the balance sheet to offset the majority of the company's near $7 million of accumulated losses at March 2007.

At December, accumulated losses were recorded at $1.8 million, which also reflected substantial improvement on the $10 million bleed a year ago.

Its capital base also grew to $61 million.

The manufacturing company, whose plant has long been shuttered, makes its money off property rental.

In the quarter under review, CMP earned $17 million, a gain of 5.3 per cent relative to the similar nine-month period in 2006.

Its operating profit was also higher at $7.76 million, but not much changed from the $7.37 million in the 2006 period.

The rental income has increased its asset base by 10 per cent to $91.5 million mainly due to increased bank and cash balances.

65 per cent decline

But CMP has also seen a 65 per cent decline in the value of its fixed assets - comprising furniture and fittings, computers and plant and machinery - from $261,000 at December 2006 to $92,000 in the third quarter of 2007.

CMP is now principally owned by a Curaçao registered company Castelo Holdings BV, chaired by Jamaican lawyer Harold Brady, which acquired 79.66 per cent of the shareholdings from CMP Holdings in August 2007 at an undisclosed price.

The Jamaica Stock Exchange has since suspended trading in the stock, for breach of takeover rules by the new owner.

Castelo has failed to make a mandatory offer to acquire the shares of minority shareholders, as legally required.

richard.deane@gleanerjm.com

CMP Industries Limited

Nine Months to December 2007

Revenues $17.1m

Net Profit $5.2m

Operating profit $7.8m

Total assets $91.5m

Equity $61.2m