EXPRESS Catering Limited plans to raise fresh financing to repay a US$12-million bond due next March, as a correction to its audited accounts revealed a tighter position on obligations falling due within a year.

The operator of food and beverage outlets at Sangster International Airport revised its May 2026 financial statements to classify the bond as a current liability. The change removes a previously reported US$11.97-million surplus of current assets over current liabilities, leaving a small deficit of US$34,742.

Directors say they intend to refinance the debt through a new bond issue and have already received and reviewed proposals.

“The directors intend to meet the repayment of the bond by refinancing through a new bond issue. Having received and reviewed proposals regarding the refinancing of the bond, the directors have concluded that no material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern,” the revised accounts state.

The statements do not say that replacement financing has been secured, nor has it disclosed the proposed terms.

The existing bond, issued on March 8, 2024, carries interest of 8.5 per cent annually, payable quarterly, and must be repaid in full on March 8, 2027. Although Express Catering can redeem it early under specified conditions, the terms do not give the company a right to extend or roll over the debt.

That repayment date falls within 12 months of the May 31 reporting date, requiring the bond to be recorded among current liabilities — obligations due within a year — rather than longer-term debt.

The revised statements, approved by the board on October 2, replace those approved on September 17. The correction changes when the debt is presented as falling due, without increasing the amount owed or changing the company’s profit, equity or cash flows.

Auditor HLB Mair Russell drew attention to the revision while retaining an unmodified audit opinion. It also identified repayment of the bond as a matter of particular significance in the audit, given the judgement involved in assessing future cash flows and the availability of financing.

At May 31 Express Catering had current assets of US$26.20 million against current liabilities of US$26.24 million. However, most of those assets were money owed by a related company.

Margaritaville Limited owed Express Catering US$24.64 million, up from US$16.93 million a year earlier. That balance represented approximately 94 per cent of current assets while cash and cash equivalents, after deducting the bank overdraft, stood at US$477,570.

Express Catering also corrected the description of that balance. The original accounts had stated that it bore no interest; the revised statements say it earns interest at 8.5 per cent annually. Interest income from related parties amounted to US$1.08 million for the year, compared with US$11,961 in 2025.

Net advances to Margaritaville Limited totalled US$6.62 million during the year. Together with the interest recorded, these account for the US$7.70-million increase in the amount owed.

The financing plans come after a weaker year for Express Catering’s airport business. Revenue fell by 26.9 per cent to US$18.92 million while operating profit declined from US$6.86 million to US$4.47 million. Net profit was US$2.68 million, down 28.8 per cent from US$3.76 million.

The Jamaica Observer previously reported that Hurricane Melissa, which hit Jamaica’s western third last October, sharply reduced passenger traffic through Sangster, cutting sales at the company’s concessions and delaying plans to expand beyond the airport. In April, the company said it was preparing additional food court offerings ahead of an anticipated tourism recovery.

Higher other income helped cushion the annual earnings decline. It rose to US$1.71 million from US$19,198, with interest from the related-company balance accounting for most of the total.

Net cash provided by operating activities fell to US$2.27 million from US$9.45 million. The cash flow statement records the increased related- company balance alongside weaker earnings and a rise in trade and other payables. No dividends were declared for the year.

Total borrowings were largely unchanged at US$14.98 million. The US$12-million bond accounted for most of that debt, with other facilities including a US$2.23-million loan from Sygnus Credit Investments.