TMCnet News
Jay Mart plans B7bn debt collection shopping spree [Bangkok Post, Thailand](Bangkok Post (Thailand) Via Acquire Media NewsEdge) Nov. 12--Jay Mart Plc (JMART), the mobile phone and accessories retailer, plans to raise capital next year to expand its debt management and debt collection business to 20 billion baht from 12 billion now. CEO Adisak Sukumvitaya said yesterday that the company would increase its registered capital by issuing new shares, but did not give further details. Its debt management and collection business operated by subsidiary JMT is the highest margin generator for the group, and Jay Mart would focus on it next year, he said. Over the past five years, the company has invested 655 million baht to buy 12.96 billion baht worth of debt accounts for collection and management. The return from the business ranges from 50% to almost 300%. This is why the company plans to buy an additional 7 billion baht worth of debt next year. "We plan to focus on hire-purchase car loans primarily. The capital we raise will be mainly used for debt management, but some will go to our new concept mobile shop and to expand our IT mall," said Mr Adisak. It plans to secure at least 400 million baht via bank loans and new share issues for its debt management arm. Jay Mart wants to list JMT once the latter's portfolio reaches 20 billion baht. JMT has paid-up capital of 120 million. The company expects total revenue growth this year will be higher than its target of 40%. In 2012, it expects to increase revenue by at least 30%. The company currently obtains 90% of its revenue from mobile retail sales, 6% from debt management and collection, and 4% from retail space rentals operated two other subsidiaries. For the first nine months of this year, the company reported total revenue of 4.36 billion baht, an increase of 10.1% from the same period last year. Net profit increased 102% to 114 million baht. "Mobile phone sales are likely to expand next year, supported by 3G wireless broadband," said Mr Adisak. Shares of JMART closed yesterday on the SET at 4.26 baht, up six satang, in trade worth 1.83 million baht. ___ (c)2011 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com Distributed by MCT Information Services |