Property value boost Pulse’s profit

Sabrina Gordon, Business Reporter



Gains on investment property bolstered modelling agency Pulse Investments bottom-line, doubling its profit for the six months to the end of December 2011, according to its financial report.



The company saw a marginal improvement in operating revenue during the review period, up three per cent to J$58.7 million from J$56.9 million.



However, its expenses grew, resulting in a decline in operating profits.



Operating expenses rose 12 per cent to $39.7 million, depressing operating profit which stood at $18.9 million compared to the $21.6 million at the end of the same period in 2010.



But with a $24.9 million fair value appreciation on investment property, the company's net profit doubled for the half year to $42.7 million.



The gains also helped to grow Pulse's asset base to $1 billion, up from $697.6 million during the corresponding period in 2010.



Investment property during the period was valued at $856 million compared to

$575 million the prior year.



Pulse Investments revenue lines comprise management and commission fees from its modelling agency, market sponsorships, television programming and rental income from sub-letting leased properties.



The stock last traded at $1.76 on the Jamaica Stock Exchange.



In January Pulse traded at $2.45, reaching a high of $3.20 before it started slipping.



In 2011 Pulse shares fluctuated between $4.00 and $1.00.



The company has been actively seeking to diversify it operations and has now expanded into the hospitality sector.



It now operates the Villa Ronai, comprising a spa, three restaurants, seven suites, beautified gardens and other shops in Stony Hill, St. Andrew.



"Having completed this first phase of Villa Ronai, Pulse is now even more focused on its core fashion, modelling and entertainment operation and plans to significantly expand these lines of business within the next year," said Kingsley Cooper, the company’s managing director.



Cooper also noted that his daughter Safia Cooper, formerly employed by Red Stripe, recently joined Pulse as director of sales and marketing and is to play a key role in its expansion.



Pulse, which started operating in the 1980s, has pioneered, defined and developed the modelling industry not only in Jamaica but in the rest of the Caribbean.



"Despite the many challenges that are evident in the local and international business environment, Pulse is reasonably satisfied with the company's performance,” he said.



“However, there is a lot to be accomplished if the company is to fully realise its potential. In this regard, Pulse is guardedly optimistic that, barring any unforeseen developments which could have a negative impact on its operations, the company is on track to achieve its objectives," he added.



sabrina.gordon@gleanerjm.com