Transjamaican Highway sees double-digit revenue and profit uptick in first quarter

 



TransJamaican Highway Limited for the first quarter ended March 31, 2025, reported revenue of US$22.5 million, representing a 14 per cent increase (US$2.7 million) over the US$19.8 million recorded in the same period of 2024.

Group revenues are mainly toll collections. Other gains and losses are comprised primarily of the gains produced by financial market operations and resulting financial income on investment instruments.

Under the Concession Agreement, the Company also has the right to collect revenues generated from commercial exploitation of the areas surrounding the Toll Road, including gas stations and related ancillary services, electricity and telecommunication cables and fiber optics.

For the quarter ended March 31, 2025, the Group recorded other gains of US$0.9 million, representing a decrease of US$0.3 million compared to US$1.2 million in the same quarter of 2024.

The decline was primarily due to lower interest income, as the Group reduced investment activity to reserve funds for planned initiatives scheduled for the first half of this year.

For the quarter ended March 31, 2025, the Group had profit before tax of US$12.1 million, reflecting a 33 per cent increase of US$3 million when compared to profit before tax of US$9.1 million for the same quarter in 2024.

This was largely driven by increased revenues, offset slightly by cost factors. For the quarter ended March 31, 2025, the Group had net profit of US$9.1 million, an increase of US$2.2 million or 32 per cent when compared to net profit of US$6.9 million for the same quarter in 2024. This result reflects the impact of US$3million in corporate and deferred tax charges, compared to US$2.2 million in the prior year period.

The Group incurred operating expenses of US$5.5 million, reflecting a decrease of US$0.5 million, compared to US$6 million for the same quarter in 2024. This decrease was primarily due to lower amortization of the Intangible Asset and lower repairs and maintenance activities carried out in the first quarter. This was partially offset by increased marketing expenditures supporting the expanded T-Tag and other campaigns, as well as higher bank charges.

 Administrative expenses for the Group were primarily comprised of staff costs, depreciation of plant and equipment and other routine office expenses.

For the quarter ended March 31, 2025, administrative expenses increased slightly to US$2.5 million, up US$0.2 million from US$2.3 million in the corresponding quarter of 2024.

The increase was mainly due to salary adjustments reflecting inflation and other compensation-related movements, plus higher travel expenses linked to renewed contracts for operational team transportation and increased printing and stationery costs as key operational supplies were replenished.

Finance costs are comprised mainly of interest on the Secured notes issued. For the quarter ended March 31, 2025, finance costs were US$3.3 million, down from US$3.5 million in Q1 2024. This US$0.2 million reduction aligns with the gradual decline in interest expenses, as principal repayments on secured notes continue to be paid on a quarterly basis.

As of March 31, 2025, total assets stood at US$301 million, up from total assets as of December 31, 2024 (US$294 million). This was primarily attributable to an increase in funds held in  reserve accounts and growth in  trade receivables and was also offset by a further amortization of the Intangible asset and a reduction of the deferred tax asset.

As at March 31, 2025, share capital remained at US$27 million. Retained earnings, however, was comparable to that reported as December 31, 2024, i.e. US$37 million at the end of the reporting period compared to US$38 million as at year end 2024.

This was primarily attributable to net income generated over this first quarter and reduced by the declaration of a US$10 million dividend in March 2025 for which payment is due in April 2025.

 Liabilities As at March 31, 2025, the Group’s liabilities consisted mainly of long-term debts, provisions and other trade related payables. Total liabilities rose to US$237 million, compared to US$229 million as at December 31, 2024. This increase was mainly attributable to the dividend payable and a rise in trade-related payables, partially offset by continued principal repayments on the secured notes.

Source: Jamaica Stock Exchange

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