In a response to recent concerns raised about its current related party balance clean-up, Chairman and CEO of Express Catering Ltd (ECL) Ian Dear confirmed that the company is seeking to refinance the debt.

“The balance of US$5.99 million at May 31, 2018 due from Related Parties is made up of three separate Related Party accounts with amounts due from ECL as well as amounts due to ECL,” Dear informed the Jamaica Observer.

“This is a carryover from the period when ECL was a fully owned subsidiary of MCL Group. The company will take steps to cancel the non-active balances by paying down the amounts due to Related Parties and collecting from Related Parties amounts due to ECL,” he stated.

“The company declared recently a dividend of US$6 million, that will result in a further substantial reduction of the existing balance,” he added.

Turning to the issue of the preference share balance and interest rate, Dear told Sunday Finance that the existing preference shares were entered into at a time of higher interest rates.

“Since then, rates have trended downwards. ECL is currently engaging funding institutions with a view to refinancing this debt. Redemption costs, as well as arranger fees, will be critical factors in this decision,” he noted, however.

In a recent article on the issues, IC Insider.com ( Investors Choice) noted that while ECL’s profits jumped 290 per cent to US$3.5 million and an increased revenue of 10 per cent to $15.7 million, a fall of $1.4 million in administrative cost to $6.6 million and a near $1 million rise in gross profit actually accounted for the bulk of the profit growth.

The online publication said that earnings per share came in at 0.021 US cents with the help of the Starbucks franchise, which should be in full operation for all of next fiscal year and continued strong showing in tourist arrivals.

It added that revenues should climb much faster than the 10 per cent experienced for 2018, helping to boost profit, which IC Insider.com projected at 0.035 US cents or $0.45.

A week ago, ECL advised that its directors have concluded an interim dividend payment of US 0.0611 cents per share for a total payout of US$1,000,512.50 to all shareholders on record on October 1, 2018, with the proposed payment date being January 4, 2019.

Express Catering is a Jamaican company that was formed in 2001 to provide food and beverage operations at Sangster International Airport in Montego Bay.

Over the years, the company has grown to be the exclusive provider of food and beverage operations at the airport inclusive of the following branded restaurants and concessions: Quiznos Subs and Salads, Dairy Queen, Nathan’s Famous Hot Dogs, Domino’s Pizza, Auntie Anne’s Pretzels, Wendy’s Cinnamon, Moe’s South Western Grill, Island Deli, Viva Fresh Market, Grab & Go, Cricket Sports Bar, Connections Bar, Air Margaritaville Arrivals Bar, Jamaican Bobsled Café, and Groovy Grouper, the bar.

One of Express Caterers’ big plans for this year, the opening of its new Starbucks locations, was primarily responsible for its fixed assets expenditure for the half-year of US$198,416. The money was spent on setting up the new locations, as well as on replacement costs for fully depreciated and worn fixtures and equipment.

In terms of future growth, the company says that the addition of the Starbucks Coffee concept to the offerings at Sangster International should be completed during the third quarter of the current year.

ECL notes that it is completely focused on maintaining a high standard in its food and beverage facilities, and also to ensuring that its food and beverage offerings remain relevant to consumer demands in the market place.

The company currently employs over 270 people on a continuing basis with additional people brought on during peak seasons.