Big things seem to be in the offing at Express Catering Limited (ECL), the Jamaican food and beverage operation which is primarily linked to the Sangster International Airport (SIA) in Montego Bay.

There were lots of questions about expansion, mainly as it would involve the Norman Manley International Airport (NMIA) in Kingston, for chief executive officer (CEO) Ian Dear as the guest speaker at last Wednesday’s Mayberry Investments Limited’s (MIL) monthly investors forum at the Knutsford Court Hotel in New Kingston.

Dear managed to skip around the details of any major new expansion of the business, although his comments made it clear that it was an obvious consideration. However, despite being disappointed with the lack of details the audience seemed to have been encouraged with the announcement that Harriat “Harry” Maragh, the current chairman and chief executive officer (CEO) of Lannaman & Morris Shipping Limited and Metro Investments, has joined ECL as its newest board member.

Maragh, who was lured back to shipping in Jamaica in the 1990s by Lannaman and Morris, after venturing abroad in search of prosperity, quickly moved up the ranks at the shipping company, from salesman to sales director, then to general manager, and later managing director, eventually buying out the company, in 1997, when the owners were determined to sell, turning it into a very successful investment after all.

Regarded as one of Jamaica’s best known and most widely respected shipping agents, the company represents some 70 per cent of all cruise lines visiting Jamaica and 15 per cent of cargo tonnage entering the island’s ports. It also manages the Ocho Rios Cruise Ship Terminal on behalf of the Port Authority of Jamaica. The Ocho Rios Cruise Ship Terminal is ranked in the top 12 cruise terminals in the Western Hemisphere by Lloyd’s of London, and today is the most profitable and efficient cruise terminal in Jamaica.

Maragh has insisted that his success is due to his conservatism and his willingness to remain humble and careful in what he shares, in order to keep a competitive edge.

So, it wasn’t surprising that Dear kept the cards as close to his chest as possible as far as ECL’s future endeavours are concerned, despite the questioning audience. However, he was willing to admit that with the obvious growth expected at the NMIA, especially with the government’s plans to extend the tourism-driven corridor along the south coast, ECL was determined not to be left out.

“The NMIA is going to expand, and I believe it is going to take us to a different place…I believe that within the next five years the NMIA will not be the same,” he noted, pointing out that it represents the dominant destination for Jamaicans and business visitors.

He believes that this will be vastly upgraded within the next few years, turning eastern Jamaica, including Kingston, into a competitive tourist destination, leveraging access into the capital city as well as surrounding parishes, like Portland.

However, Dear insists that, in the meantime, ECL will continue focusing on the SIA which provides access to some four million passengers annually.

The Sangster International Airport reported a 6.8 per cent increase in departing passengers for fiscal 2018. This increase was a direct result of the improved stopover visitor numbers recorded in calendar year 2017, as well as the realisation of the continued improvement in visitor numbers, as projected into 2018 by the Jamaica Tourist Board.

The Jamaican tourism ministry is anticipating continued improvement in stopover visitor arrivals, and ECL stands to benefit directly from these projected improvements.

ECL’s business model is heavily dependent on the tourism market and, in particular, the stopover visitor numbers.

For fiscal 2018, approximately 4.32 million passengers used the Sangster International Airport, with approximately 2.17 million being departing passengers. In addition to stopover visitors, a number of resident Jamaicans also use the airports as their medium of travel.

For fiscal year 2017, 3.99 million passengers utilised the Sangster International Airport with just over two million being departing passengers. This represents an 8.11 per cent growth in overall utilisation of the airport for fiscal 2018 over prior year and a 6.8 per cent growth in departing passengers.

Revenue for the year achieved US$15.7 million, a US$1.47 million or 10.35 per cent increase over revenues for the prior year. Net Income for the year was US$3.45 million, compared to US$1.08 million in the previous year, an increase of US$2.37 million.

This produced earnings per share for the current year of US$.0021 compared with US$.0006 for 2017, a more than threefold increase.

The company declared and paid dividends of US$1.5 million or US$0 .0009 per share during the year. This was paid to all shareholders on record as at August 18, 2017. The company invested US$971,000 into assets during the year, with the majority of that sum towards the development and build-out of the planned Starbucks’ locations.

In terms of future opportunities for growth as is, Dear noted that:

(1) The renovation of the SIA food court represents an opportunity to capture 100 per cent of departing passengers from both the east and west concourses, as opposed to 70 per cent of the current capture rate. This would represent an increase of 630,000 departing passengers;

Based on the increased capture of departing passengers from the west terminal and an anticipated increase in the average spend, owing to access to a large variety of food and beverage offerings, ECL projects a $3.15 million revenue increase.

(2) ECL offers the most diverse and comprehensive portfolio of brands in the region. Its insight, proven expertise and ability to quickly adapt to changing needs in the tourism market puts it at an advantage in engaging airport operators with confidence. ECL is actively seeking new contract and joint venture opportunities with other airports in the Caribbean and Latin America;

The company is currently in discussions with an international airport in the Caribbean. That airport welcomes eight million passengers each year, twice as many as at the SIA.

At Wendy’s, ECL is adding “Line Busters” which allow for maximising revenues by more effectively taking guests’ orders. It is also adding faster and more efficient commercial equipment to the kitchens and easy-to-read digital menu boards, which will expedite the guest appearance from order to delivery.

The company is also seeking opportunities for new food and beverage offerings to meet market demands, which generate an increased average spend per customer, Dear said.