Portland JSX ends 2021 with 57% growth in profitsWednesday, May 05, 2021
BY DAVID ROSE
After being in the red for most of 2020, Portland JSX (PJX) finished its 2021 financial year (FY) on a high note as total income grew by 31 per cent to US $3.1 million ($472.3 million). Net profit for the period ending February 28 closed out 57 per cent higher at US $2.1 million ($325.9 million).
The equity investment vehicle had been recording losses for its first nine months which was driven mostly by a sharp decline in the fair value of its equity investment in the Portland Caribbean II fund (PCF II). However, a reversal to the tune of a US $3.8 million gain in the fourth quarter resulted in the overall 2021 period seeing a US$2.6 million gain. PJX also benefited from a US$128,901 distribution of partnership income and a large foreign exchange gain of US$330,112 compared to the US$17,801 in the prior period.
Although total expenses dropped by four per cent to US$951,151 for the 2021 FY, interest expense relating to its long-term loan rocketed by 112 per cent to US$346,641. Operating expenses went down by 27 per cent to US $604,510. PJX should have collected US $1.2 million from the cash distribution related to one of its portfolio companies, but left it in reserve with PCF II based on advice by its fund manager on anticipation of higher legal and professional fees for the 2022 FY.
These positive outruns resulted in earnings per share coming out at US $0.0068 versus $0.0043.
Total assets grew by eight per cent to US $31.6 million ($4.86 billion) with its financial investments now standing at US $31.4 million which included additional investments of US $451,348. PJX's cash stood at US $1,734. Total liabilities increased by four per cent to US $3.8 million while equity rose by 8 per cent to US $27.8 million.
On March 4, PCF II invested $55 million (US $363,512) into ecommerce provider Merqueo which operates in Columbia and Mexico. PJX's allocation from the investment was $8 million (US $52,534). PJX refinanced its loan earlier this month for a five-year bond valued at $600 million (US $4 million) which is set to mature in April 2026.
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