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Jordan Clothing Co PLC (CJC)
Company History
-
CJC was established in 1949 as a private company
specialized in the manufacturing of men’s clothing.
-
CJC was transformed into a private limited company in
1995.
-
CJC shares were purchased by Jordan Central Co. (PLC) in 1995 at a value of 3.8
million JD inclusive of shops key money and goodwill.
-
CJC was transformed into a public share holding
company in 2005.
CJC transformation to a public company
-
The company was evaluated at JOD 3,550,000 by the
Jordanian Ministry of Trade & Industry (excluding shops key money and
goodwill).
-
CJC capital was declared at 3.00 M JD and 550,000 JD
was diverted into the voluntary reserves account.
-
The Jordan Securities Commission has approved the
registration of CJC shares. However the shares have been classified
as founders shares that can only be traded on the 20th of
June 2008.
-
The company is trying convince the Jordan Securities
Commission to change it’s decision and allow CJC shares or part of
them to be traded before the set date.
CJC restructuring steps
The board of directors of CJC drew plans for the company designed to
create a substantial buildup of the company performance to become the
leading company in Jordan in it’s field.
These plans included the following:
-
To improve the
financial performance.
-
To expand the
company activities.
-
To increase the working capital.
1.
Improve the financial performance
To achieve these goals the company
implemented the following steps:
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Improve the profitability of all divisions by reducing cost of
goods sold and other major costs.
-
Build up production capacity.
-
Introduce more brands and products targeting the young
generation.
-
Upgrade and expand the retail division of the company.
-
Build more effective mechanisms capable of providing real time
financial and logistical information on the company activities.
-
Improve the
marketing and sales techniques of the company.
•Above plans were implemented and
favorable financial results started to surface during
the second half of the 2006.
CJC Retail Division Financial Performance 2006
|
Description |
30th June
Profit |
31st Aug
Profit |
Difference
|
Next 4 Months
Profit |
2006 Expected
Profit |
|
Sales
|
689,991 |
1,142,893 |
452,902 |
650,000 |
1,792,893 |
|
Cost Of Goods |
303,840 |
491,000 |
187,160 |
266,500 |
757,500 |
|
Gross Profit |
386,151 |
651,893 |
265,742 |
383,500 |
1,035,393 |
|
Sales Commission |
78,959 |
113,000 |
34,041 |
30,757 |
143,756 |
|
Direct Expenses |
158,621 |
208,798 |
50,177 |
119,332 |
328.130 |
|
Indirect Expenses |
88,679 |
145,861 |
57,182 |
72,931
|
218,791 |
|
Bank Charges |
42,914 |
58,832 |
15,918 |
29,419 |
88,248 |
|
Total Cost |
369,173 |
526,490 |
157,317 |
263,246 |
789,736 |
|
Net Profit Pre Tax |
16,978 |
125,403 |
108,425 |
120,255 |
245,657 |
CJC 2006 Non Retail Divisions Financial Performance
|
Description |
30th June
Profit |
31st Aug
Profit |
Difference
|
Next 4 Months
Profit |
2006 Expected
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
590,252 |
|
|
|
|
|
|
82,500 |
|
|
|
|
|
|
218,792 |
|
|
|
|
|
|
37,800 |
|
|
|
|
|
|
339,092 |
|
|
|
|
|
|
251,161 |
CJC 2006 all divisions total Financial
Performance
|
Description |
30th June
Profit |
31st Aug
Profit |
Difference
|
Next 4 Months
Profit |
2006 Expected
Profit |
|
|
1,400,123 |
2,133,568 |
733,445 |
1,209,000 |
3,342,568 |
|
|
778,484 |
1,101,048 |
322,564 |
615,875 |
1,716,923 |
|
|
621,639 |
1,032,520 |
410,881 |
593,125 |
1,625,645 |
|
|
78,959 |
113,000 |
34,041 |
30,757 |
143,756 |
|
|
209,499 |
263,798 |
54,299 |
146,832 |
410,630 |
|
|
177,358 |
291,722 |
114,364 |
145,861 |
437,583 |
|
|
61,305 |
84,032 |
22,727 |
42,016 |
126,048 |
|
|
527,121 |
752,551 |
225,430 |
365,466 |
1,118,017 |
|
Net Profit Pre Tax |
94,518 |
279,969 |
185,451 |
227,659 |
507,628 |
CJC Stand alone
Full Financial Performance 2006
|
Description |
30th June
Profit |
31st Aug
Profit |
Difference
|
Next 4 Months
Profit |
2006 Expected
Profit |
|
Retail |
16,978 |
125,403 |
108,425 |
120,255 |
245,657 |
|
Non
Retail |
77,540 |
154,566 |
77,026 |
96,595 |
251,161 |
|
Reserves |
500,985 |
500,985 |
0 |
0 |
500,985 |
|
Digital Printing Press |
3,085 |
4,000 |
915 |
4,000 |
8,000 |
|
Total |
598,588 |
784,954 |
186,366 |
220,849 |
1,005,803 |
2. Expanding the company activities
•CJC
board of directors decided to purchase the shares of Central
Clothing Co (CCC). At the same time CJC has moved all its
production facilities to Al Tajamouat at the same premises of
CCC operations. Through this step both companies will
be able to achieve the following:
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A major reduction of costs.
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Increase production capacity and accordingly
increase its sales.
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Handel export orders under the QIZ
status.
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Introduce more product lines.
•The
premises at Al Tajamouat is a 7000 sq meters building and is owned
by Jordan Central Co PLC.
3. Increasing the working
capital
CJC management has adopted the following
steps towards increasing it’s working capital:
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•Reducing
the inventory to new low levels.
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•Offering
it’s existing building in Moqableen - Amman of 3800 sq meters to be sold.
Expected price will be 1.2-1.4 million JD.
Restructuring Results
-
•CJC
is now performing with favorable financial results
and in a more independent entity from Jordan
Central CO PLC.
-
CJC current setup
will allow the company to enjoy growth and a
steady performance.
Jordan Central Co PLC
is now the owner of the 3 million CJC shares and
this constitutes the major part of it’s financial
investments.
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