Ashford W. Meikle, Staff ReporterTHE JAMAICA Pegasus Hotel is off to a good start for this financial year. The unaudited results for the first quarter ending June 30 show a 26.6 per cent increase in the hotel's earnings per share over the corresponding period for last year. A dark horse on the Jamaica Stock Exchange, the Pegasus' stock continues to trade firmly on the JSE Index. It closed the business day on Tuesday at $10.50, on July 31 last year it traded at $2.50.
Significantly, the company's profit and loss statement indicates that the hotel has been successful in maintaining a cap on costs and expenses. The result increased sales utilising fewer resources. Cost of sales increased by eight per cent, while operating and administrative expenses registered an almost insignificant four per cent increase.
Net profits of $13.23 million were earned on gross revenues of almost $143 million. For the first quarter in 2003 the hotel posted net profit of $10.44 million on sales of $$131.05 million.
UPGRADING
The management of the Pegasus Hotel is quite upbeat about its performance this year. In an earlier interview with the Financial Gleaner, General Manager Eldon Bremner indicated that the hotel is upgrading its IT systems and retraining its managerial staff. He also said the management would be focusing on cost control and enhancing its product to target the domestic and CARICOM markets.
With 350 rooms and suites, the 17-storey hotel has a property value of $2.5 billion. For its financial year ending March 31, 2004, the Pegasus earned revenues of $538 million, a 13 per cent increase over the previous year.
