Malta-based JD Group saw pre-tax profit decrease by 37.9 per cent to €259,355 in 2023 (2022: €416,526), yet the financial performance was still deemed “satisfactory” by the Board of Directors.
The figures were announced in the group’s Annual Report for the financial year ended 31st December 2023, published recently.
JD Group, formerly known as JSDimech Ltd, is engaged in the business of providing aluminium, steel, wrought iron, large scale glass formats, and stainless-steel works, as well as the construction of steel structures. Additionally, the group also holds an investment property, and during 2023 also incorporated a new subsidiary, JD Real Estate Development Ltd, engaged in property development.
During 2023, the group recorded €13 million in revenue, up from the €11.8 million registered in 2022. All of the revenue was generated from contracts with customers.
On the other hand, cost of sales remained relatively stable with that of last year, amounting to €10.7 million. In 2023, the group also incurred €180,256 in selling and distribution expenses (2022: €140,999) and €1 million in administrative expenses (2022: €1 million).
Including the €239,322 in other income that was also recorded, JD Group registered an operating profit of €1.4 million, significantly higher than the €185,439 of 2022.
However, the major difference between the operating profit performance and that of the pre-tax profit is the €971,285 gain on fair value movement in 2022 that was not replicated in 2023. Fair value is the price at which a property could be exchanged between willing parties without deducting transaction costs, with this being based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. Movements in fair value are recognised directly to the profit or loss account in the period in which they arise. As was the case for JD Group in 2023, no movements in fair value were made.
Additionally, the group also recorded €1.2 million in finance costs during 2023, up by 64.3 per cent from the €723,655 registered in 2022.
The Board of Directors of JD Capital, a subsidiary within JD Group, stated that the performances of both the group and JD Capital were “satisfactory.” The Directors anticipate that the present level of activity will “remain positive in the foreseeable future.”
The group’s total assets as at the end of 2023 amounted to €76.3 million, expanding sharply from 2022’s €57.5 million.
The Board of Directors did not recommend the payment of a final dividend. The retained earnings of the group and subsidiary JD Capital plc’s accumulated losses amounting to €1.4 million and €537,993 respectively shall be carried forward.
