The former cinema enterprise operator RND Holdings Limited experienced more than half a million dollars in losses for the 2005 financial year that ended February 28, according to the company’s newly released audited results.
It proved to a poignant indicator that projected dividends for shareholders will not be forthcoming at least for another two years, company principals revealed in their financial statements.
The net income loss reported was $588,782, a far cry from the $1.2 million in income that was reported in the previous financial year.
Chairman Jerome Fitzgerald and Managing Director Fred Donathan in the statements acknowledged that the fiscal performance was indicative of the challenges involved in the company’s restructuring process.
“The company remains committed to an objective of attaining a break even position in terms of cash flow and income within the forthcoming 18 months, with an eventual goal of being able to pay dividends on an ongoing basis within the next 24 months,” it was noted.
The company, which last year sold its cinema interests to Galleria Cinemas, has been struggling to overcome a bitter internal feud between its Chairman Jerome Fitzgerald and his former partner Brent Stubbs.
It had been previously reported that the restructuring process had begun with a substantial downsizing of the managerial staff, containment of other operating costs and an emphasis on improving operating efficiencies.
Company executives explained that it’s what accounted for a significantly improved financial position in 2004.
RND Holings ended its 2005 financial year with a net loss from continuing operations of $528,400 compared with a net loss from continuing operations of $1.4 million for the 2004 financial year.
The previous year’s net income figure of $1.2 million reflected the $2.6 million gain that occurred through the sale of the company’s cinema assets.
But principals said they are confident about an improving trend in the company’s financial performance primarily fueled by the launch and expansion of its TicketXpress business segment.
The component was launched in March 2005 and the installation for an air reservations system with a domestic charter service has already begun. It is expected to be completed by the end of this month ahead of planned installations in other such operations.
“Additionally TicketXpress has been awarded the contract to provide call center services for The Bahamas Out Island Promotion Board and its member hotel properties. Through this contract TicketXpress will have an exclusive arrangement to answer all calls coming into The Bahamas Out Island Promotion Board’s 1-800-BAHAMAS and 1-800-OUTISLANDS telephone numbers as they relate to Family Island air and hotel reservations,” the financial statements said.
The service is expected to earn a commission on all hotel packages booked through its call center. The new service is expected to begin in August 2005.
RND Holdings Limited has also made plans to liquidate its holdings in Golds Gym. It has fielded several enquiries but none of them has materialized into a sales agreement to date. It led to a decision by the board of directors not to reopen the hurricane battered gym in Grand Cayman.
In other areas, according to the financial report, the commercial real estate holdings continue to perform well with an overall average occupancy level of 92 percent.
The next annual general meeting has been scheduled for June 27th, as the board has reportedly undertaken to meet all of its reporting requirements on a timely basis. The AGM’s scheduled date is a month ahead of the prescribed timeline of the Securities Commission of The Bahamas.
Total shareholders’ equity accounts for $7.1 million.
By: Tameka Lundy, The Bahama Journal
