Pulse Investments Limited submitted its 2024 audited financial statements to the Jamaica Stock Exchange (JSE) last Wednesday, the final day for submission of its numbers before the JSE had the opportunity to consider suspending the company for breaching its rules.

Pulse’s audited financial statements for the June 30, 2024, period was due by August 29. However, a notice was published on the JSE on September 6 with Pulse explaining that its financials would be late due to the passing of former chairman and Pulse co-founder Kingsley Cooper, who died on June 18, and the engagement of its new auditors Baker Tilly Strachan Lafayette, which replaced BDO Jamaica. Pulse gave a timeline of October 31 as its new submission deadline.

However, the company did not meet that deadline either and instead set November 27 as the new timeline for the submission of its audited financials and December 30 as the new deadline of its annual report. Pulse’s annual report was due by October 30.

Listed companies on the JSE are required to file their audited financials in 60 or 90 days based on the filing arrangement they have communicated to the Regulatory Market & Oversight Division (RMOD) and wider market. If a company misses its initial deadline, it must submit its audited financials 90 days after that original timeline or the JSE will have the power to suspend all the company’s shares, both ordinary and preference, from trading on the market until it is compliance.

The JSE has suspended EduFocal Limited, EquityLine Mortgage Investment Corporation, Productive Business Solutions Limited (PBS) and IronRock Insurance Company Limited in 2024 for late submission of audited financials. All of the companies except for EquityLine were eventually readmitted to trading with PBS’ ordinary and preference shares being admitted on November 15. EquityLine was initially readmitted in June before it was suspended again in July and delisted on October 7. Kintyre Holdings (JA) Limited (formerly iCreate Limited) was suspended for five months in 2024 for breaches of several JSE rules.

Pulse was previously suspended from trading for late audited financial filings in December 2014 and suspended from trading in 1997 before it was delisted in May 2001. It was relisted to the market in June 2006. Pulse Model Agency was formed in January 1980 by Cooper and Hillary Phillips, KC.

With Pulse now submitting its audited financials, the company can get to work on submitting its first-quarter results which were due on November 14 but were delayed due to the absence of its audited financials. Pulse has indicated its intention to submit these results by December 23.

Pulse’s 2024 audited financials revealed that the company’s 2023 figures were restated due to the understatement of deferred taxes and adjustments to its revaluation reserves. This resulted in the restatement of Pulse’s balance sheet for 2023 and 2022 financial years (FYs) and restatement of its income statement. As a result, Pulse’s liabilities for the 2023 FY increased from $2.31 billion to $2.63 billion while its shareholders equity was cut from $9.07 billion to $8.75 billion.

The company’s 2023 figures were also adjusted with the company’s operating profit moving from $1.604 billion to $1.599 billion and its net profit decreasing from $1.573 billion to $1.432 billion.

Pulse’s revenue for FY 2024 was down 14 per cent from $948.93 million to $815.10 million as the company 34 per cent cut in its advertising entitlements during the year with the company recording no fashion show income in the period. However, Pulse’s operating profit dropped 62 per cent from $1.60 billion to $607.67 million due to the company recording a $262.09 million impairment on its advertising entitlements and a lower fair value gain on its investment property during the period. An impairment is usually a non-cash expense which is meant to recognise the reduction in the available value of an asset.

After accounting for finance costs and lower taxes, Pulse’s net profit dipped 62 per cent from $1.43 billion to $542.95 million. This resulted in the earnings per share decreasing from $0.23 to $0.08.

Total assets were up four per cent to $11.82 billion with the bulk of this consisting of $8.21 billion in investment property while its cash decreased from $91.57 million to $26.78 million. Total liabilities decreased three per cent to $2.56 billion while shareholders equity improved from six per cent to $9.26 billion.

Pulse’s audited financials revealed that it is now seeking a new contractor to complete Pulse Homes since G L Superb Limited, a company wholly owned by former chairman Cooper, was undertaking the two-year project. Phase I was set to consist of 15 homes which would include four two-bedroom townhouse units while phase II would consist of another 15 homes at Villa Ronai, Stony Hill, St Andrew. $514.04 million has been spent as development expenditure related to the project so far with $30.46 million currently being held as deposits in escrow for Pulse Homes units.

Pulse’s stock price closed at $1.09 on November 29 which made it the worst performing stock on the Main Market in 2024 as it was down 47.34 per cent, with the stock halting down on Friday and hitting a new 52-week low of $1. It also remains as the fourth worst performing stock on the JSE this year, a sharp contrast to prior years where it was the best performing stock in terms of price improvement. The stock closed at $1.15 on Tuesday which left it with a market capitalisation of $7.50 billion.

Pulse paid a $0.005 dividend totalling $32.62 million on February 8, which was its first dividend since April 2021.

Pulse co-founder Hillary Phillips, KC has served as interim chairman since June 24. She remains Pulse’s second-largest shareholder with a 6.551 per cent stake. Kingsley Cooper was Pulse’s largest shareholder with a 73.102 per cent stake, the former attorney acquiring an additional 541,000 shares in the company’s fourth quarter (April to June). Co-managing directors Safia Cooper and Romae Gordon own 0.489 per cent and 0.694 per cent, respectively.