Revenues at Limners and Bards are set to hit the billion mark this year, with the nine months to July hitting $942 million, up 37 percent from $686 million in 2020 and the full year to October 2020 coming in at $912 million.
The topline performance led to profit rising 32 percent from $108 million to $142 million, with earnings per share of 15 cents. Quarterly profits climbed 35 percent from $21 million to $29 million from a 50 percent rise in revenues from $215 million to $323 million.
The revenue growth was driven by media placement (up $142.4 million or 39.4 percent) and production (up $115.9 million or 62.2 percent). There was a reduction in agency (down $2.4 million or 1.8 percent) during the period, Steven Gooden, Chairman and Kimala Bennett, Chief Executive Officer, stated in the Key Performance Highlights report.
The company enjoyed a big jump in finance income in the quarter and year to date periods with an income of $5.5 million for the quarter, up from $1.4 million in 2020 and $20.5 million for the nine months from $3.6 million last year.
Gross profit rose 25 percent to $285 million for the nine months to July, from $227 million and $82 million up 35 percent from $61 million. Gross profit mrgin slipped to 30 percent for the nine months to July, up from 33 percent in 2020 and for the latest quarter 25 percent from 28 percent in 2020.
Administration expenses increased $38.6 million, or 32.4 percent in comparison to the previous nine months period. These increases are primarily attributable to staff costs (increased work volume), repairs and maintenance of production equipment, depreciation and amortization charges and lease interest. Even with this increase, administrative expenses as a percentage of revenue remains relatively flat at 16.7 percent compared to 17.3 percent in the previous period.
Administrative expenses rose a robust 44 percent to $57 million in the quarter and increased 32.4 percent in the nine months to $157 million but the year to date amount remains steady at 15.3 percent of sales revenue and, while the third quarter represents 17.7 percent of sales down from 18.5 percent in 2020, well below the growth in revenues. . Sales and distribution expenses increased from zero percent to $8,000 in the quarter and were flat at $537,000 for the nine months. Finance cost rose in the quarter to $32,000 from $21,500 in 2020 and from $4 million to $5.6 million for the nine months.
Gross cash flow brought in $155 million, the paying $70 million dividends the operations added $68 million to $380 on hands the beginning of the year to end at $449 million at the end of July. Shareholders’ equity stood at $536 million, with long term borrowings at $106 million and short term at $3 million. Current assets ended the period at $657 billion, including trade and other receivables of $184 million, cash and bank balances of $449 million. Current liabilities ended the period at $185 million. Net current assets ended the period at $472 million.
The stock traded at $3.50 on the Junior Market of the Jamaica Stock Exchange on Friday. IC Insider.com forecast is for earnings per share of 20 cents for the current year to October and 33 cents per share for the fiscal year ending 2022 with a PE of 17.5 times current year’s earnings, but 10.6 based on 2020 earnings. The average for the market based on the current year’s earnings is 12.7.
The company paid two dividends of 7.4 cents in January and 3.6 cents in August this year, amounting to $94 million. Net asset value is $0.57, with the stock selling at 6 times book value.
Archives for October 2021
Revenues at The Lab to hit the billion mark
86% surge in Scotia Group Q3 profit
An 86 percent surge in profit after taxation at Scotia Group pushed the July 2021 quarter profit to $2.8 billion over $1.55 billion reported in 2020, a period heavily impacted by a massive provision for credit losses amounting to $2.57 billion. Profit after tax for the nine months to July climbed 31 percent to $7.29 billion compared to $5.56 billion last year, helped by the drop in credit loss provisioning in the current year.
Scotia Group headquarters in Kingston.
Net interest income fell 8.4 percent for the third quarter to $5.7 billion from $6.2 billion in 2020 and slipped 9 percent to $17 billion for the nine months to July from $18.7 billion in 2020. Expected credit losses for the latest quarter of $584 million was a fraction of the 2020 provision. For the nine months expected credit losses dropped sharply to $1.99 billion from $5.25 billion in 2020. Falling interest rates on investments, reduction in lending and growth in funds deposited by the public would have negatively impacted the results. The recent increase in interest rates by the Bank of Jamaica could benefit the group with investments and loans that could generate higher income and widen the net interest income margin.
Net fees and commission income rose to $1.95 billion from $1.65 in 2020 in the third quarter but fell slightly from $5.08 billion in 2020 to $4.99 billion in 2021 for the nine months. Gains on foreign currency activities slipped from $1.75 billion in July 2020 quarter to $1.65 billion and rose 17 percent to $6.2 billion from $5.3 billion for the nine months. Insurance revenues grew to 35 percent in the latest quarter to $696 million from $516 million and fell in the nine months to $2 billion from $2.4 billion. Other revenues brought in $1 billion for the nine months compared to just $39 million for the prior period and are attributable primarily to gains realized on the extinguishment of debt facilities.
Loans advanced to customers that stood at $222 billion at the end of July last year declined modestly to $216 billion at the end of July this year but is up slightly from $214.7 billion at the end of April this year. The report to shareholders stated that mortgage loans recorded growth of 11 percent year over year and is similar to increase up to the April quarter. Growth in loans is essential for the group is it is an area that contributes most to the rise in profits and creates stability in earnings.
Audrey Tugwell Henry Scotia group’s CEO
Segment results show the problem local banks have with retail banking. That segment generates the most income for Scotia but contributes the least in profits. For the nine months to July, Retail Banking contributed $1.3 billion to profit on revenues of $14 billion and in 2020, the segment contributed a loss of $975 million from revenues of $14.5 billion. Treasury generated $1.3 billion in segment profits from $2.9 million in revenues to third parties against $1.46 billion from revenues of $3.1 billion in 2020. Corporate Banking resulted in a profit of $3.5 billion on revenues of $8.44 billion and profit of $3.23 billion on revenues of $8 billion in 2020. Investment Banking delivered a profit of $1.85 billion on revenues of $2.6 billion and profit of $1.3 billion on revenues of $2.29 billion in 2020 and Insurance produced profit of $2.12 billion on revenues of $3.1 billion and profit of $2.5 billion with revenues of $3.48 billion in 2020.
Customer deposits grew 10.7 percent to $371 billion to July, from $335 billion for the comparable quarter of 2020. Investment securities rose from $141 billion at the end of July 2020 to $146 billion after dipping to $116 billion at the end of the 2020 fiscal year and cash resources stood at $147 billion, up from $116 billion at the end of July 2020.
Shareholders’ equity ended at $116 billion at the end of July this year, up from $110 billion as of July 2020.
Earnings per share stood at 90 cents for the July quarter and $2.34 for the nine months this year and should end up around $3.50 for the entire year; for 2022, and earnings should exceed $4 per share. At the close of trading on the Jamaica Stock Exchange Main Market to stock at $39 at the start of the final week of September.
While the stocks trade at 11 times the current year’s earnings, 2022 should see growth in profits, thus reducing the valuation most likely below ten times 2022 earnings.
Carib Producers surges to top ICTOP10
Caribbean Producers surges in ICTOP 10
Caribbean Producers raced to the top of ICTOP10 listings this week after the company released full year results that showed a loss, but with the final quarter posting a profit of US$2 million before exceptional onetime cost and resulting IC Insider.com upgrading earnings from 65 cents per share to a $1.20 for the current year.
Based on years of underperformance and the knock from the closure of the hotel industry last year, many investors thought this stock was a lost cause. Based on research and understanding of the business sector, this publication had the stock the number three position on the Junior Market Top 10 list at the start of the year, just behind Caribbean Cream. 
So far to October, CPJ gained 90 percent and should exceed 100 percent this coming week and Caribbean Cream is up 67 percent ahead of second quarter results due in two weeks. Another TOP 15 stock this year, Caribbean Cement, surged on Friday to close at $120 after trading at a record high of $146.12, just short of IC Insde.com forecast in April this year in the report, captioned “Carib Cement Q1 profit triples” that the stock that last traded at $75 on the Main Market of the Jamaica Stock Exchange is projected to get to $150 in the next twelve months.
While the Jamaican stock markets continued to bounce around, the past week saw clearer signs of the upward momentum returning, with the Barita Investments APO issue out of the way. Bank of Jamaica’s raise its overnight rate to 1.5 percent from 0.50 percent and the tightening of the financial market continued with CD rates averaging 2.59 percent during the past week.
Elsewhere, in the Junior Market, AMG Packaging fell from $2.10 to $1.70, Stationery and Office Supplies rose from $5.76 from $6.49, Access Financial rose from $18.75 to $20, General Accident rose from $5.15 last week to $5.45, Medical Disposables rose from $4.46 to $5.15, Caribbean Assurance fell from $1.80 to $1.66 and Caribbean Cream moved up to $7 from $6.60 last week. In the Main Market, Caribbean Producers rose from $4.65 to $5.50 on Friday.
The top three Main Market stocks are Caribbean Producers, Berger Paints, followed by Guardian Holdings, with expected gains of 216 to 336 percent for the three, versus last weeks’ 208 to 263 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by General Accident and Lasco Financial. All three have the potential to gain between 217 and 300 percent, from 250 percent and 307 percent last week.
This past week, the average gains projected for the TOP 10 Junior Market stocks moved from 214 percent to 203 percent and Main Market stocks moved from 166 percent to 180 percent.
The Junior Market closed the week with an average PE 12.7 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the historical average of 17 for the period to March this year, based on 2020 earnings. The TOP 10 stocks trade at a PE of 6.7, with a 53 percent discount to that market’s PE. The overall Junior Market can gain 57 percent to March next year, based on an average PE of 20 and 34 percent based on an average PE of 17.
The JSE Main Market ended the week with an overall PE of 15.7, a little distance from 19 the market ended at in March, suggesting a 27 percent rise at a PE of 19 and 21 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6, with a 49 percent discount to the PE of that market, well off the potential of 20.
ICTOP10 is not intended to be a selection of the best stocks in the market but the most likely to be the biggest winners within fifteen months. ICInsider.com ranks stocks to separate the bigger winners from the rest, allowing investors to focus on potentially huge gains, helping to keep out emotional attachments to stocks that often result in the making of costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on possible increases for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
October off to bright start for JSE USD market
October started on a positive note, with trading picking up sharply on Friday, over Thursday and most prices rising as the volume of shares changing hands surged 1,564 percent with the value jumping 2,501 percent over Thursday’s trades, on the Jamaica Stock Exchange US dollar market.
As was the case on Thursday, trading ended with seven securities changing hands, with prices of four rising, one declining and two ending unchanged.
The JSE US Denominated Equities Index popped 0.60 points to end at 196.20.
The PE Ratio, a measure used in computing appropriate stock values, averages 12.4 based on ICInsider.com’s 2021-22 earnings forecast.
Overall, 919,720 shares traded for US$207,226, compared to 55,270 units at US$7,967 on Thursday. Trading averaged 131,389 units at US$29,604 versus 7,896 shares at US$1,138 on Thursday. September ended with an average of 853,681 units for US$132,197.
Investor’s Choice bid-offer indicator shows no stock ended with a bid higher than the last selling prices and two ended with lower offers.
At the close, First Rock Capital remained at 7 US cents with an exchange of 11,968 shares, 
Margaritaville popped 0.6 of a cent to 11 US cents after trading 1,000 units, Proven Investments rose 0.7 of one cent to close at 24.7 US cents after trading 884,152 stocks. Sterling Investments remained at 2.09 US cents, 781 stock units crossing the exchange, Sygnus Credit Investments US$ share rose 0.01 of a cent to 13 US cents, 21,761 stocks changing hands and Transjamaican Highway rallied 0.01 of one cent to 0.97 US cents after trading 50 shares.
In the preference segment, JMMB Group 6% lost 2 cents to end at US$1.02 in switching ownership of 8 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market down to start October
The Jamaica Stock Exchange Main Market commenced trading on the first day of October robustly, with The All Jamaican Composite Index sprinting to 460,374.69 points after 43 minutes of trading elapsed on Friday, with Caribbean Cement jumping 30 percent to a record $146.12 before pulling back to close at $120 as trading volume of shares moderated from trading levels on Thursday even as the value of stocks traded jumped 35 percent.
The All Jamaican Composite Index declined 202.09 points to 456,489.84, the Main Index shed 312.21 points to 414,577.75 and the JSE Financial Index lost 0.64 points to end at 101.04.
Trading ended with 52 securities similar to Thursday, with 15 stocks rising, 23 declining and 14 ending unchanged.
The PE Ratio, a measure used in computing appropriate stock values, averages 15.7 based on ICInsider.com’s forecast of 2021-22 earnings.
Overall, 15,897,514 shares traded for $552,681,759 versus 18,546,540 units at $409,063,174 on Thursday. Eppley led trading with 19.8 percent of the day’s volume, after an exchange of 3.14 million shares, followed by Wigton Windfarm 11.7 percent with1.85 million units. GraceKennedy followed with 11.4 percent from 1.82 million units, Sagicor Select Financial Fund accounted for 8.8 percent, with 1.40 million units, Pulse Investments 8.5 percent with 1.34 million units and NCB Financial with 7.5 percent in trading 1.19 million units.
Trading averaged 305,721 units at $10,628,495, compared to 356,664 shares at $7,866,600 on Thursday. September closed with an average of 335,669 units at $7,507,338.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Barita Investments dived $4.84 to$103.25 after trading 623,197 shares, Berger Paints lost 48 cents to end at $14 in switching ownership of 59,491 stock units, Caribbean Cement spiked $8, in closing at $120 with 29,739 stocks clearing the market after the price hit a record $146.12 in mid-morning trading. Caribbean Producers rose 75 cents to $5.50 in exchanging 568,310 units, Eppley dropped $7.50 to finish at $32.50 with a transfer of 3,144,676 shares, Eppley Caribbean Property Fund fell $4.25 to $42.50 in an exchange of 1,100 stocks. First Rock Capital lost 30 cents in closing at $13 with 8,977 shares crossing the exchange, GraceKennedy popped 20 cents to $99.20, after 1,815,401 units crossed the market, Guardian Holdings fell $3 to $582, with 5,213 stocks changing hands. Jamaica Producers shed 55 cents to $23.20 in trading 4,491 shares, Kingston Properties rallied 50 cents to settle at $9 with the swapping of 170 stock units, Mayberry Jamaican Equities rose 74 cents to $9, with 1,262 units changing hands. Palace Amusement surged $130 to $900 in transferring 26 units, PanJam Investment shed $1 to close at $63 after trading 5,320 shares, Proven Investments declined $1.25, to $32.50 with 7,072 stock units changing hands. 
Sagicor Group dipped 70 cents to $57.30, with 31,390 stocks crossing the market, Sagicor Real Estate Fund gained 40 cents to finish at $8.40 in trading 500 stock units, Salada Foods shed 83 cents to close at $6.07 in an exchange of 55,074 stocks. Scotia Group fell $1.15 to $37.60, with 46,115 shares clearing the market, Seprod slipped 59 cents to $62.50 in switching ownership of 4,365 units, Sygnus Credit Investments lost 37 cents to close at $15.98 with the swapping of 82,282 stocks and Victoria Mutual Investments lost 20 cents after ending at $5.45 in trading 35,256 shares.
In the preference segment, 138 Student Living preference share shed 75 cents to end at $6.70 in exchanging 165 stock units, Eppley 7.50% preference share dropped 80 cents in closing at $6, with 10,027 stocks crossing the market and JMMB Group 7.25% popped 38 cents to $2.88 with 18 shares changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market rose into October
Jamaica Stock Exchange Junior Market started October off to a good note, with the market index closing higher but only after more stock declined than gained at the close on Friday, with the volume and value of stocks traded falling 30 percent and 31 percent respectively, from Thursday trades.
Market activity led to 36 securities trading compared to 34 on Thursday and ended with 10 rising, 18 declining and eight, closing unchanged.
The Junior Market Index rose 16.15 points to 3,312.50. The PE Ratio, a measure used in computing appropriate stock values, averages 12.7 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 7,659,422 shares traded for $28,865,188 down from 11,102,954 units at $41,080,349 on Thursday. Jamaican Teas led trading with 61.4 percent of total volume after 4.70 units of the company’s million shares were traded, followed by Lumber Depot 9.9 percent with 758,308 units and Future Energy Source traded 9.5 percent, with 730,160 shares.
Trading averaged 212,762 units at $801,811 down from 326,557 shares at $1,208,246 on Thursday. Trading in September closed with an average of 207,032 units at $668,264.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than their last selling prices and seven with lower offers.
At the close, Access Financial popped $2.90 to $20 with the swapping of 2 shares, AMG Packaging climbed 9 cents to $1.70, with 185,800 stock units crossing the market, Blue Power rallied 40 cents to $3.37 in switching ownership of 25,998 units. Cargo Handlers rose 79 cents to $7.79 after exchanging 447 stocks, Caribbean Cream spiked $1.01 to $7 while exchanging 50,966 shares, but the stocks had 100000 units on offer at $6.50 at the close, Consolidated Bakeries fell 10 cents to $1.70, with 2,488 stocks crossing the exchange. Dolphin Cove gained 14 cents to end at $10, with 958 stock units changing hands, Elite Diagnostic dropped 5 cents to close at $3 after exchanging 247,582 units, Fontana lost 9 cents in closing at $6.50 with an exchange of 33,339 stocks. Future Energy Source declined 16 cents to $2.70 in exchanging 730,160 shares, General Accident rose 15 cents to $5.45 1n trading 3,693 stock units, Indies Pharma shed 52 cents to end at $3.23 with 1,070 units changing hands. ISP Finance popped $1.50 to close at $25, with 500 stock units clearing the market, Jamaican Teas shed 10 cents to $4 in an exchange of 4,701,946 units, Jetcon Corporation lost 15 cents after ending at $1.01 and trading 19,000 stocks. 
Lasco Distributors fell 49 cents to $3.50, with 23,144 shares crossing the market, Lasco Manufacturing declined 30 cents to end at $4.50 after swapping 22,583 shares, Limners and Bards dropped 35 cents to $3.50 in trading 15,895 stocks. Mailpac Group fell 6 cents to $3.84 after exchanging 418,371 stock units, Main Event lost 8 cents to close at $4.20 while trading 1,037 units and Medical Disposables climbed 15 cents to $5.15 after 46,950 units crossed the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trinidad Exchange starts October with losses
Market activity ended on Friday with more stocks rising than falling at the close of trading on the Trinidad and Tobago Stock Exchange, but the market indices slipped after trading 1,174 percent more shares, with 275 percent higher value than Thursday.
At the close, 20 securities traded compared to 18 on Thursday, with seven rising, five declining and eight remaining unchanged. The Composite Index dipped 1.48 points to 1,429.21, the All T&T Index lost 2.86 points to end at 1,929.85 and the Cross-Listed Index ended at 125.23.
A total of 4,586,153 shares traded for $13,232,503 versus 359,958 units at $3,532,277 on Thursday. An average of 229,308 units traded at $661,625 compared to 19,998 at $196,238 on Thursday, with the average trade for September amounting to 36,606 units at $425,940.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Agostini’s remained at $24.50, trading 79 shares, Angostura Holdings traded 233 stock units ended at $17.10, Ansa McAl declined 79 cents in closing at $57.01 after trading 347 stocks. Calypso Macro Investment Fund lost 30 cents to end at $16.20, with 600 units crossing the exchange, Clico Investment Fund edged 1 cent higher to $26.50 with an exchange of 4,172 units, Endeavour Holdings popped 5 cents to $7.05 in exchanging 167 shares. First Citizens Bank climbed 12 cents to $50.72 in an exchange of 340 stock units, GraceKennedy advanced 1 cent to $6.26 after exchanging 17,829 stocks, Guardian Holdings shed 5 cents to close at $32.80 with the swapping of 17,236 stock units. 
Guardian Media remained at $3.01 while trading 1,485,184 stocks, JMMB Group closed at $2.22 in switching ownership of 3,011,424 units, Massy Holding jumped 50 cents in closing at $83, with 2,523 shares clearing the market. National Enterprises fell 9 cents to $3.20, with 1,496 shares crossing the market, National Flour Mills ended at $1.90 after trading 5,000 stock units, Prestige Holdings remained at $7, with 150 stocks crossing the market. Republic Financial Holdings traded 204 units at $135.76, Scotiabank dropped $1.50 in closing at $60.50 after switching ownership of 2,955 stock units, Trinidad & Tobago NGL remained unchanged at $17.40, with 2,500 stocks crossing the exchange. Trinidad Cement rose 4 cents to $4 with the swapping of 10,550 units and West Indian Tobacco gained 1 cent to close at $30.95 with 23,164 shares changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Carib Cement at $147
Jamaica’s sole cement producer Caribbean Cement hit a record high of $147.12 in today’s early trading and was suspended after the JSE circuit breaker was triggered. The stock, which closed on Thursday at $112, has risen 31 percent for the day.
Barita Investments closed yesterday at $108.09 and is down to $102.30 after trading 298,424 units. Also on the move is QWI Investments that traded up to 90 cents after the block of 23 million shares on offer were removed.
There are only four offers for cement on the board, with the lowest at $147; the bids are not strong with all at $105 or below but for a small amount of 99 units at $146.12.
The markets are up in early trading on the first day of October, with the All Jamaican Composite Index now at 460,323.71, up from 456,691.93 at the close of September. The Junior Market Index is at 3,316.21, up from 3,296.35 on Thursday. Jamaican Teas shares that were in strong demand on Thursday traded at $4.50 after 1.68 million shares were traded.
