Measures to control expenditures last year achieved more than JD1.8m in savings
AMMAN -- The general assembly of the Jordan Press Foundation (JPF) /Al Rai on Sunday endorsed the board of directors' report on the company's 2012 businesses and plans for this year.
The 2013 plan focuses on completing the building complex of Al Rai's new multi-million-dinar printing press.
As stipulated by the contractor, an initial delivery of the building will take place by the end of June and the new equipment will be operational, printing both daily newspapers and commercial materials like school textbooks, during the second half of 2013.
With these advanced techniques, the JPF will be qualified to enter and compete in Arab markets.
The plan for this year includes setting up a mailing room whose function will correspond with the operations of the new printing press.
As listed in the company's annual report, which was endorsed during Sunday's ordinary general assembly, earnings from advertising dropped from nearly JD19 million in 2011 to JD15.8 million at the end of last year.
Sales of Al Rai Arabic daily, The Jordan Times and the children's magazine Hatem brought slightly more than JD2 million to the company, while it generated JD2.3 million in 2011, the report said.
Income from the commercial press stood at JD2.6 million, compared to JD2.8 million in 2011. Overall, earnings went down from JD24.1 million in 2011 to JD20.5 million at the end of last year.
Production costs totalled JD15.7 million at the end of 2011, down from JD17 million in the previous year. Consequently, gross profit fell from JD7.1 million in 2011 to JD4.8 million last year, according to the report.
After taking into account other income and costs that included JD3.3 million in general and administrative expenses, JD1.2 million in selling and distribution expenses, JD4.2 million in provisions for doubtful assets, JD0.8 million in provisions for slow-moving inventory and JD0.3 million provision for end-of-service compensation, JPF registered a JD4.6 million loss in 2012.
With a JD0.6 million income tax saving, the comprehensive result becomes a JD4 million loss, down from a JD1.3 million profit in 2011.
During the meeting, JPF Chairman Ali Al Ayed indicated that the measures taken by the management to control expenditures last year achieved more than JD1.8 million in savings at both operational and administrative levels.
He expected the measures to achieve more than JD1 million in savings in 2013, stressing that such steps have no effect on JPF's editorial and marketing functions.
Ayed added that in 2012, the management of the Jordan Press Foundation took immediate remedial action aimed at rectifying imbalances and removing accumulated distortions to brake their repercussions on JPF's business and activities.
He stressed that it was necessary to establish a sound administrative and financial position because the imbalances and distortions resulted in more than JD5 million in accumulated debt for which no provisions had been taken.
"The company went to courts to collect these debts as total receivables at the end of 2012 exceeded JD8 million, which included the JD5 million mentioned previously," the chairman said, noting that JD3 million was collected through JPF's operations in the advertising and distribution market.
Ayed pointed out that JD4.9 million in financial violations were detected last year as part of the efforts exerted by the board of directors to regain financial control of the company; the case was referred to the judiciary.
At the end of the meeting, shareholders elected Mansour Al Nabulsi as board member representing the private sector to replace Mohammad Al Amad.
© Jordan Times 2013
