Connect with us

Auto

Jetcon Corporation 2017 Revenues Up 37% Crosses JA$1 Billion Mark For First Time.

Published

on

Jetcon Corporation Ltd is reporting profits of JA$154 million for their 2017 financial year, a 55% jump over 2016.

The directors are celebrating another successful year as revenues were also up, rising 37% to exceed the $1 billion mark for the first time.

However, sales in December were lower than expected, due to delays in vehicles being cleared from the wharf, resulting in slowing deliveries.

Revenues for the first two months of the 2018 was however 16% ahead of the same period in 2017 and orders in hand at the start of March are in line with the similar period in 2017.

The company has acquired property during the year to allow for continued expansion of its operations going forward and to be able to better serve clients.

Jetcon Corporation closed the year with improved earnings per stock unit of 26 cents up from the 18 cents in 2016.

To view Jetcon Corporation Limited Financial Statements for Year Ended December 31, 2017 click HERE

Auto

Aspects of New Road Traffic Act That Will Require Phased Implementation Outlined

Published

on

Aspects of the new Road Traffic Act that require phased implementation are to be addressed as the country begins to operate under the new legislative regime, says Minister of Transport and Mining, Hon. Audley Shaw.

Delivering a Statement in the House of Representatives on January 31, Mr. Shaw noted that the transition to the new Act will require a period of conversion, with changes to the documents used and produced, and the required adjustments in road infrastructure.

Some of the transition matters include the mapping of existing driver’s licences to the new classes.

The Minister said that although the requirements to obtain a ‘Class C’ (commercial) licence will be different from the current requirements for a general licence, existing licences will be treated as though a motorcycle licence is ‘Class A’, private is ‘Class B’, and general is ‘Class C’.

“A person’s existing licence will continue to be valid to drive the types of vehicles recorded on the back of the licence, and a licence renewed during the transition period may not reflect any significant change in what is printed on the licence,” Mr. Shaw said.

Another transition matter is the allowance for current learner drivers to test under the old regime.

Mr. Shaw said new holders of provisional licences will not be able to apply for a driver’s licence for a period of six months.

“There will be an exemption to the six-month requirement before being tested for a driver’s licence for those who got provisional licences under the Road Traffic Act 1938 after August 1, 2022,” he stated.

Also, traffic signs that have been erected over the years with designs that vary from those now incorporated in the Road Traffic Regulations, will continue to be valid and to have the effect as per the earlier regulations and be enforceable accordingly.

In addition, vehicles will continue to be classified in similar manner to the earlier legislation, except for a broadening of the definition of a motorcycle.

“Where the classification of a vehicle is impacted by this change, the change will take place at the next fitness certification. Efforts will be made to contact owners of such vehicles, so that they can be made aware and understand any implications,” Mr. Shaw said.

Time will also be given for driving instructors to meet certification requirements.

Mr. Shaw explained that driving instructors and driving schools will have to be certified and licensed by the Island Traffic Authority.

“The effective date of this requirement is proposed to be January 1, 2024, which will allow for a reasonable time to allow the instructors to undergo an approved training programme,” he stated.

In addition, a national vehicle register is to be developed that will include all vehicles, whether operated on public roads or not.

However, vehicles used off-road will not need to be registered unless the owner wishes to get a title.

“It will take time to gather information on these vehicles to fully populate the register, but information will now be put in the register upon importation,” Mr. Shaw said.

Meanwhile, the Minister informed that the Island Traffic Authority (ITA), established under the Act, is a statutory body that is not yet operational as an organisation.

As a result, the functions to be carried out are delegated to the bodies that currently have responsibility, such as the National Works Agency, Tax Administration Jamaica, and the Ministry, and when the entity is set up, it will take over the requisite functions.

Mr. Shaw also informed that it would take approximately six months before the changed process for applying, issuing, and keeping records of demonstration plates can take full effect, as dealers will need time to adjust their processes so that the new registers and reporting systems can be populated and brought up to date.

On another matter, Mr. Shaw said speed limit zones have been revised and new zones identified, but it will take some time to get the new signs in place to demarcate the zones, so that the changes are clearly communicated to motorists and enforcement officers.

“It is anticipated that the new signs will all be in place by the beginning of next year,” he stated.

Persons with outstanding tickets will also be denied services, such as renewal of their driver’s licence.

Implementation of this measure will not come into effect immediately but should become effective by April 1, 2023.

Regarding the use of application forms, where the differences between the existing forms and the new forms are not significant, the TAJ and ITA will continue to use the existing physical stock until these are depleted, as the old forms are valid for use under the new legislation, in keeping with the Interpretation Act.

Continue Reading

Auto

Jamaican Gov’t Lowers Duty on Electric Vehicles

Published

on

The import duty on electric vehicles has been reduced from 30 per cent to 10 per cent, and purchasers of those vehicles will not have to pay licence fees over the next five years.

The House of Representatives on Tuesday (July 19) approved the Customs Tariff (Revision) (Amendment) (No. 2), Resolution, 2022, and the Road Traffic (Licence Duties) Order, 2022, and

Resolution on Tuesday (July 19) to give effect to the measures. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, advised that the lower duty rates and the elimination of the licence fee requirement apply to electric vehicles that are three years old or less at the time of importation.

Government is serious about ensuring a clean energy future.

He said that the measures, which took effect on July 14, are supporting the country’s transition from a high dependence on petroleum for motor vehicles by making it more affordable for Jamaicans to acquire electric vehicles.

He said that that Government is serious about ensuring a clean energy future.

“The electric vehicle technologies are undergoing rapid change, and so the public interest is best served by ensuring that the latest technologies are preferred over older technologies. Having 10-year-old electric vehicles in the country doesn’t help anybody; we need the latest electric vehicles at any point in time,” Dr. Clark contended.

The Minister told the House that the implementation of the measures came out of discussions with the Ministry of Science, Energy and Technology, the Inter-American Development Bank (IDB) and other stakeholders, to see how best to encourage persons to purchase electric vehicles.

He said it was determined that the reduction in duty and removal of licence fees would be the best way to incentivise the transition.

The Finance Minister noted that duties on motor vehicles are a major source of government revenue, with earnings of about $30 billion to $40 billion, and so “the way we treat with the reduction of duties for electric vehicles has to be considered very carefully, because we couldn’t afford to completely cannibalise all of that revenue. However, at the same time, we must make a start in the transition”.

“We recognise that these are not panaceas, but they represent a significant concession to facilitate Jamaicans in the acquisition of battery electric vehicles,” he added.

Continue Reading

Auto

Taking Stock LIVE – Electric Car Sales Company Comes To Jamaica

Published

on

On this episode of Taking Stock…Jamaica’s Electric Vehicle market is getting a jolt! Two Jamaican-Canadians are launching Flash Motors to sell electric vehicles, service equipment, and charging networks in Jamaica and across the Caribbean. And Wigton just bought up a 21-percent stake in the company. Talk about a game changer! The Flash team will tell us all about it.

And THE ANALYSTS weigh in on the latest market developments… Now that the entertainment sector is back up, will we see a rise in entertainment stocks such as Main Event and KLE? EduFocal stock jumped 200-percent in its first week on the Jamaica Stock Exchange… why? And Honey Bun is reporting a 31 percent increase in net profit for its first quarter. We’ll discuss.

Continue Reading

Auto

Future Energy Source (FESCO) Secures JA$1B Debt Financing By Way Of Five (5)-Year Corporate Bond.

“FESCO represents one of the several initial public offers we would have brought to the market in the last 24 months. Our relationships with our clients are on-going and we continuously work with our clients to develop suitable options to meet their capital needs. The J$1 billion bond is such an example. This underscores our commitment to doing more for our clients and the capital markets at large” stated Nicholas Dawson- Investment Banking Manager of Origination and Structuring at NCBCM.

Published

on

The bond is to be listed on the Private Market of the Jamaica Stock Exchange, with NCB Capital Markets Limited (NCBCM) acting as Arranger, and JCSD Trustee Services Limited as Trustee. The facility is for an aggregate principal sum of One Billion Jamaican Dollars (J$1,000,000,000.00).

The proceeds will be utilized for general corporate purposes that support FESCO’s growth objectives, including working capital, operating expenses and capital expenditure related to the:

1. Expansion of its dealership network and service station footprint; and

2. Entry into the consumer cooking gas/LPG market, an objective outlined in its Prospectus.

The facility offered by NCBCM is compatible with the business’ growth plans and sustainability strategies.

“FESCO represents one of the several initial public offers we would have brought to the market in the last 24 months. Our relationships with our clients are on-going and we continuously work with our clients to develop suitable options to meet their capital needs. The J$1 billion bond is such an example. This underscores our commitment to doing more for our clients and the capital markets at large” stated Nicholas Dawson- Investment Banking Manager of Origination and Structuring at NCBCM.

Future Energy Source Company Limited is a Jamaican-owned fuel marketing company operating since 2013, licensed to market and distribute petroleum products in Jamaica with a network of sixteen (16) service stations.

Continue Reading

Auto

Jetcon Corporation Reporting Recovery In Sales And Profit For Third Quarter & Nine Months To September 2021

The third quarter for 2021 ended with a profit of $5.7 million, compared with a $2 million loss during the same period last year. Revenues for the quarter climbed 28 percent to $196 million, compared with $153 million for the similar period in 2020. Cost of Sales increased 29 percent from $128 million in 2020 to $166 million in 2021, directly in line with the increase in sales.

Published

on

Jetcon Corporation Limited is reporting that for the third quarter & nine months to September 2021 there was a recovery in sales and profit. This as the company completed its third quarter with increased sales representing a turnaround from a loss last year.

The third quarter for 2021 ended with a profit of $5.7 million, compared with a $2 million loss during the same period last year. Revenues for the quarter climbed 28 percent to $196 million, compared with $153 million for the similar period in 2020. Cost of Sales increased 29 percent from $128 million in 2020 to $166 million in 2021, directly in line with the increase in sales.

For the nine months to September revenues jumped 30 percent from $467 million in 2020 to $607 million this year and profit of $3 million reported to September 2020 climbed 283 percent to $11.5 million.

On the balance sheet side the company is reporting an uptick in activity with an increase in inventory up 13 percent from the same period in 2020, to $445 million. This includes spares parts and goods in transit. Payables are up from $32 million at the end of September 2020 to $110 million and includes deposit for goods ordered but not yet delivered.

Managing Director Andrew Jackson noted that this was an effort to shore up stock before the effects of the price increases in supply materialized.

In his outlook he reported that Jetcon continues to enjoy a relatively strong financial position. With smart marketing and pricing strategies, and with increasing vaccination rates, and decreasing covid case rates, they hope that restrictions will continue to ease, thus helping to fuel recovery. To date, sales for the fourth quarter are stronger still, with units sold in November at their regular pre-pandemic levels and already exceeding sales for the third quarter. This upward swing continued into December, and with increased bookings to date.

Continue Reading

Trending