Jasons Travel Media expects profit close to forecast

In its first half-year report since listing Jasons Travel Media says it expects full-year after tax profit to be close to the forecast $542,000.

That is despite the half-year report for the travel and tourism information provider showing a "modest loss".

Jasons listed on the NZAX alternative exchange on June 30 raising $3.6m through the issue of 7.2m shares.

Chairman Geoff Burns said the first half had tracked to budget on all key indicators and at this stage profit was expected to be within five per cent of the after tax prospectus forecast of $542,000 for the full year to March 2006.

A fully imputed maiden interim dividend of 1.5 cents per share would be paid in late January, half of the total 2006 dividend proposed in the prospectus.

Typically, the company only invoiced around a third of its annual revenue in the first half. This year half-year sales were $3.7m or 31 per cent of annual budget, Mr Burns said.

"This creates a normal (for us) modest loss in the first half."

Jasons' largest publications were issued in the second half of the financial year, so revenue flowing from contracted advertising in those publications would have a strong impact on the final result. At the end of September, the company already had on hand contracts for forward sales totalling $6.2m for the second six months.

Capital expenditure of $466,000 in the first half seemed high in relation to the prospectus full year forecast of $618,000 but was seasonal. The latest projection was that capex for the year would be slightly above forecast.

"Bank facilities are shown as fully drawn at September 30 but this too, is normal for our business at this time of the year," Mr Burns said.

"Billings in the second half will see significant seasonal reduction in the use of our banking facility."

Jasons was performing strongly and the directors believed it was well positioned to continue to grow for the benefit of all stakeholders.

Shares in the company last sold for 42c earlier this month. The top price so far was 52c.

- NZPA