FLEET and property management company, VB Holdings Limited, has recorded a decrease in net profit before tax by 18 per cent.
VB Holdings Ltd CEO Nitish Naranjan said this decreased from $874,000 for the 2012 financial year to $723,000 for the year ending December 31, 2013.
“With recent developments taking place in Fiji, the market expanded causing an increase in revenue by 25 per cent, from $2.8m in 2012 to $3.5m in 2013,” he said.
“The expenditure also increased from $1.7m to $2.8m. This is due to heavy depreciation from leases.”
While their property division recorded improvements, Mr Niranjan said the fleet division produced a 27 per cent growth in the revenue compared with the previous year’s result.
In terms of profit after tax, Mr Niranjan said this was $609,476 compared with $696,067 for the previous financial year.
“The company’s total asset resembled a significant decrease by 5 per cent. The net assets have increased by 7 per cent from $4.9m to $5.2m. Fleet management has become an essential segment of the business. This year, fleet management has generated 94 per cent of the revenue, the same percentage as in 2012.”
He said the total revenue for their fleet division was $3.3m compared with $2.6m in 2012. This, he said, was because of economic improvements in the country and government’s initiatives with regard to development.
“We expect to grow this year with positive developments taking place such as roads, mining and construction,” Mr Niranjan said.
