In contrast to expectations announced 14th March 2012, completion of the
company''s operational and strategic review has resulted in an end-of year
operating profit (EBITDA) of $1.331m (last year $1.720m) and after-tax profit
of $92k (last year $485k) Revenue for the year ended 31 March 2012 was
$NZ12.282m (last year NZ$13.907m).
The Board has written down the value of its intangible digital assets by
$360k and has only recognised a partial accrual ($100k) toward the company''s
insurance claim for losses associated with events in Christchurch, which the
company has quantified at over $200k. These non-cash adjustments have
contributed significantly to the shortfall.
Newly appointed Chairman John Sandford says that while the year-end result is
materially different from where the Board thought Jasons would be, the
adjustments are largely non-cash. Gross margin ($7.359m) is up on last year
($7.288m) and better than expected cash flows are encouraging given the
current economic climate and the effect on the company of events in
A focus on cash management has improved the overall operating cash position
and also enabled debt reduction of a little over $500k.
"We still experience strong demand from consumers for reliable travel
information through the company''s extensive print and digital resources.
Worldwide and local research continues to support the relevance to travel
consumers of the company''s range of print and digital products. However,
revenue is affected because accommodation advertising clients in particular
continue to be significantly affected by the economic climate", said John
Jasons Australian subsidiary has had a pleasing improvement and is profitable
for the first time in several years, earning a net profit before tax of
NZ$98k compared with a NZ$159k loss last year.
Outlook for the Year Ahead
"Market conditions continue to be challenging, however, our Chief Executive
Kevin Francis and his new executive team have restructured the company to
ensure its offerings meet fast changing market demands", said John Sandford.
"Our team continues to develop innovative business improvement and
productivity processes to grow underlying profitability. Barring unforeseen
events, our profitability will improve markedly in the year ahead."
Organic growth in the business is planned and new revenue streams are being
developed. Acquisition opportunities continue to be actively assessed.
The Board has resolved to not pay a dividend. This will allow the business to
continue paying down debt and free up resources to take advantage of
acquisition opportunities in the pipeline.
For comment please contact:
Jasons Travel Media Ltd
021 926 942
End CA:00223856 For:JTM Type:FLLYR Time:2012-06-14 14:11:31