BylesPAN Jamaican Investment Trust is set to continue its aggressive expansion drive as a mix of divestments, acquisitions and good performances in all its core businesses saw profit in the nine months to the end of September jump 90 per cent to $170 million.
Sales in the nine months to the end of September rose 31 per cent to $2.61 billion, according to its unaudited figures.
Already speculation is increasing in business circles that the asset and cash rich investment conglomerate could be poised to bid for a controlling stake in Life of Jamaica (LoJ), when the Financial Sector Adjustment Company (FINSAC) puts its 76 per cent holding on the market as it has said it will do soon.
Pan Jam chief executive Richard Byles refused to be drawn on a possible bid for LoJ this week. "At any one time we have a number of potential deals we are looking at and we continue to feel that acquisition is a good way to go," according to Mr. Byles.
An obviously pleased Mr. Byles pointed to strong growth at its core holdings the First Life Group, of which Pan Jam controls 73 per cent and Hardware & Lumber (H&L), along with recent attempts to grow aggressively as the reason behind Pan Jam's strong showing.
All its key buys appear to have been integrated reasonably well, with Knutsford Capital Merchant Bank now a part of its Pan Caribbean Merchant Bank operation, Facey Hardware now part of its H&L business and the Mutual Life/Dyoll Life and Crowne Eagle portfolios run by the Group's insurer First Life.
The life insurer had another stellar period with revenues rising 41 per cent to $1.58 billion and Net profit up 42 per cent at $213 million.
First Life's tight hold on costs continues with administrative expenses dropping from 23 to 20 per cent of revenues. The Jamaica Property Company business holding arm continues to see occupancy rates of around 95 per cent at its premium office block and commercial sites.
Mr. Byles said First Life's pension business has grown from $800 million in 1998 and is expected to hit $2.3 billion by the end of the year, as the arm picked up business from rivals.
Pan Caribbean net profit rose 67 per cent to $51.3 million as the Knutsford deal kicked in. This figure takes account of the performance at associated arm Trafalgar Development Bank (TDB).
Pan Jam's H&L saw the turnaround started a couple of years ago continue apace. The trading retailer and wholesaler's net profit rose $31 million on sales up 12 per cent to $989 million. The wholesale arm, which includes the recently acquired Facey receivables saw a 22 per cent jump in sales, while retailer H&L True Value sales rose 14 per cent.
