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KLE Group records $13m loss
2013-03-11 16:49:49 | (0 Comments)
The K.L.E Group has recorded a 66.7 per cent loss or J$13 million at the end of the financial year ended December 2012, up from J$7.8 million the previous year.
Gary Matalon, CEO of KLE Group
However, the company has maintained a positive outlook going forward.
"For 2013, we intend to sustain and where possible improve our marketing efforts in respect of both Usain Boltís Tracks & Records and Fiction, which we anticipate will be enhanced by the synergy of the new Odyssey gaming lounge, situated between both venues, which commenced operations in February of this year," stated the company in a release to its shareholders.
"We will also continue to seek out and implement ways to increase operational efficiencies," it said.
Despite the losses the Group managed to grow revenues by more than 100 per cent to $288 million for the reporting period, up from $131 million in 2011.
Revenues from food, beverage and merchandise, which amounted to J$252.9 million, accounted for 87.7 per cent of total revenues, while rental and gate income accounted for the remainder.
Rental and gate income totalled J$35.6 million for the review period.
Other operating income, which includes sponsorship and interest income as well as foreign exchange gains, among others, increased to $10 million, up from $8.5 million.
Administrative and other expenses grew to $198 million, representing a 117.58 per cent increase over the $91 million recorded in 2011.
KLE said it expects professional fees to be reduced this year because there was a one-off costs associated with listing the company on the junior market of the Jamaica Stock Exchange (JSE) last year.
For the review period, finance costs rose to J$5.9 million from just over $475, 000 the previous year.
The company's cost of sales also increased to J$89.9 million, up from $32 million.
"Our most significant initiative currently is the opening of the new Famous nightclub in Portmore, St. Catherine, which is on track to commence operations during the second quarter of this year," the company said.
"We have seen strong sponsor support for this new venture, and have already received $19.5 million in cash from three main sponsors, representing a portion of their overall commitment," KLE said.
"We are also engaged in institutional strengthening, having undergone two very useful management and board retreats for the year, which have assisted us tremendously in shaping our strategic priorities for the short and medium term," it added.
KLE Group is the operator of Fiction Lounge and Usain Boltís Tracks and Records and has on balance sheet an asset base of J$243 million.
Its stock last traded at J$3.70 on the JSE.
Source: The Gleaner/Power 106 News
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