Expenses cloud third quarter results for Portland JSX
Private equity investment company Portland JSX Limited reported a net loss of nearly US$700,000 in the third quarter, as expenses outpaced income.
The loss wiped out gains in the previous quarters, resulting in nine-month losses of around US$246,000.
Portland JSX Limited is a nascent fund which began operations in October 2015 and listed on the Jamaica Stock Exchange in July 2016. It's a limited partner in Portland Caribbean Fund II, which is managed by Portland Private Equity.
JSX's top line income for the third quarter ending November totalled US$698,000 - split US$312,000 in gains on financial assets, US$297,000 in dividend income, and interest income of US$89,000 from loans and receivables.
Expenses at US$1.14 million outpaced income nearly two times, leading to net losses of US$699,235 or 0.23 cent per share.
"Part of the assets is cash so, basically, if you end up paying prior month's overhead, but you do it in the third quarter so as to play catch up on the admin expenses, then effectively it rebalances the portfolio ...," said Robert Almeida, manager of Portland JSX Limited.
Over nine months, income totalled US$1.3 million, and losses amounted to US$246,031 or 0.1 cent per share. The American currency converts to just under $129 in local currency.
The Portland JSX initial public offering raised US$12 million, and its assets now total US$25 million, of which US$17.5 million is in cash and short-term investments.
Almeida said only 10 per cent or so of JSX's holdings has been invested to date, and that the focus now is finding new opportunities and projects.
More than US$3 million has been deployed.
"By going from US$3.3 million to US$7.6 million, we will expect to see that money (earnings) come close to doubling by the end of the next quarter," the managing partner said.
He said companies with good projects that can make money should pitch them to JSX.
Meanwhile, JSX announced that Trevor Cozier resigned as a director of the board at the end of December and was replaced on January 11 by Holly Hughes-McNamara. She also replaced Cozier on the audit committee.