Company at a crossroads, trying to find its way

AMMAN — Pearl Sanitary Paper Converting Company is still at a crossroads, unmanned and unable to determine the firm's future line of business.

According to a disclosure to Amman Stock Exchange, the company's functions at present are limited to capitalising on its trademark and renting the buildings and property until the economic situation improves and the outlook becomes clear to enable it determine future business activities.

The general assembly of shareholders agreed in 2009 to change the activities and line of business due to stiff competition faced by the company in upholding its products.

Subsequently, production was halted and the company's buildings were rented bringing down all expenses and administrative costs to a minimum.

The company's factory in the Naur area of Amman manufactured baby diapers, lady sanitary napkins, facial tissues, toilet and kitchen rolls, sanitary napkins, pocket tissues and table napkins.

"2014 was a year of continuity in achieving earnings to support shifting the activities of the company to investments and preparing to generate good income that would serve the interests of the firm and benefit the shareholders in line with the general guidelines drawn by the company  and, at the same time, to save costs and expenses until good investment opportunities arise to achieve higher growth and advancement,"  Chairman Mohammed Al Abdalat wrote in the 20th annual report. 

"The competent and well-studied planning of the business requirements and the persistent work to develop and reorganise the company is under way by the management  to choose the best activity amid the prevailing circumstances," he added, expressing hope that the best opportunity will be tapped in the future. 

Abdalat indicated in the foreword that the profit after tax and provisions, derived from rent and bank interest, amounted to JD45,351 last year.

Rent income in 2014 totalled JD160,400 and bank interest income was JD16,845.

According to the balance sheet as of December 31, 2014, total assets amounted to JD1.5 million, of which JD0.3 million were cash in banks and local companies; JD1 million was property and equipment, and JD0.2 million in various receivables. 

He mentioned that shareholders equity increased from JD1.18 million in 2013 to JD1.22 million, which comprised JD0.5 million in capital, JD0.4 million in mandatory reserve, and JD0.3 million in retained earnings.

According to annual report, Al Kina for Real Estate Investments Company owns 94.5 per cent of Pearl's JD500,000 capital.

Pearl's equity was reduced in 2012 when the general assembly decided to lower the capital from JD2.5 million through cash distribution to shareholders based on the stake of each investor.