Carib 5 in Cross Roads, St. Andrew, the largest of the Palace Amusement cinemas. - File

Palace Amusement Company (1921) Limited made a slim operating profit of $5.6 million from improved revenues of $415 million in its financial year just ended.

But heavy debt servicing charges and an even bigger $7.6 million tax bill has eroded all gains to keep the cinema company mired in red.

The larger tax bill reflected a $5 million adjustment on disallowed expenses relating to the sale of property in 2006.

Palace, a listed company that is 62 per cent owned by Russgram Investments Limited, recorded a net loss of $5.6 million in its year ended June 30, compared to its $6.6 million deficit in 2006.

Revenues grew across all its geographic regions - Kingston, Mandeville, and Montego Bay - as well as across its three main business segments covering in order of spend, box office receipts, snacks and confectionaries and film rentals.

Palace Amusement

FY ending June 2007

Revenues $414.7 million

Operating Profit $1.9 million

Net Profit -$5.6 million

EPS -$3.83 million

Net Assets $244 million