Express Catering Limited has reissued its audited accounts for the year ended May 31, 2026, reclassifying a US$12 million bond as a current liability and erasing the working capital surplus it reported three weeks earlier.

The revised statements were approved by the board on October 2 and replace a version signed off on September 17, the Jamaica Observer reported. The original presentation showed current assets exceeding current liabilities by US$11.97 million. The restated balance sheet shows a deficit of US$34,742, with current assets of US$26.20 million against current liabilities of US$26.24 million.

The bond was issued on March 8, 2024, pays 8.5% per year and must be repaid in full on March 8, 2027. Its terms give the company no right to extend or roll over the debt. Because maturity falls within 12 months of the year end, the bond belongs among current liabilities. The correction does not change the amount owed, or the company’s profit, equity or cash flows.

Directors intend to repay the bond by issuing a new one. They say they have received and reviewed proposals, and have concluded that “no material uncertainty exists” over the company’s ability to continue as a going concern. The statements do not say that financing has been secured, and no terms have been disclosed.

Auditor HLB Mair Russell kept its opinion unmodified but drew attention to the revision. It treated repayment of the bond as a key audit matter, citing the judgement involved in assessing future cash flows and the availability of financing.

Almost all of the company’s current assets sit in one related-party balance. Margaritaville Limited owed Express Catering US$24.64 million at year-end, up from US$16.93 million, or about 94% of current assets. Cash net of the bank overdraft was US$477,570.

The revised accounts also correct the description of that balance. The original statements said it bore no interest. The new version says it earns 8.5% a year. Net advances to Margaritaville came to US$6.62 million in the year, and interest of US$1.08 million was added to the amount owed, up from US$11,961 a year earlier.

That interest shapes the earnings picture. Revenue fell 26.9% to US$18.92 million, and operating profit dropped to US$4.47 million from US$6.86 million. Net profit fell 28.8% to US$2.68 million. Other income rose to US$1.71 million from US$19,198, most of it interest accrued on the Margaritaville balance. Cash generated from operations fell to US$2.27 million from US$9.45 million, and no dividend was declared.

The Observer has previously reported that Hurricane Melissa, which struck western Jamaica last October, cut passenger traffic through Sangster International Airport, where Express Catering runs food and beverage outlets.

Total borrowings were little changed at US$14.98 million, including a US$2.23 million loan from Sygnus Credit Investments.

The bond matures in five months. The company has not announced a timetable for the new issue.