Profit melts in the third quarter at Kremi

The 2022 fiscal year started with a blast for the first quarter to May with profit at $54 million after tax, doubling the $27 million in 2020, but a lot of that melted away in the third quarter to November at Caribbean Cream, which trades as Kremi, with the company reporting a loss in that quarter of $25 million down from a profit of $11 million in 2020. The loss brought profit for the nine months to $36 million compared to $85 million in the similar 2020 period.

Caribbean Cream closed at 52 weeks’ low of $3.80

Caribbean Cream did not have a good second quarter with sales rising 5.4 percent and profit falling 85 percent from $47 million to just $7 million due to what the company stated was the introduction of no movement days during the quarter that curtailed sales.
Sales revenues rose 14 percent for the third quarter to $500 million from $441 million but climbed 15 percent for the year to date, to $1.54 billion from $1.33 billion in 2020. The poor performance in the third quarter management attributes to “equipment and infrastructure challenges which we have addressed as we begin the final quarter.” In spelling out the issues Management, stated “at the beginning of the quarter the company faced unforeseen challenges in production resulting in the plant’s efficiency and capacity being impacted negatively. Since then, changes have been made in procedures, equipment and personnel to rectify the problem.”
While the company has been making headways with increased revenues, profit performance has not been consistent for some time, with the exception of the years 2014 to 2017 that enjoyed an annual increase in profits. The turbulence in profits since 2017 and the major problems in the 2021 third quarter reveal a major weakness in management that needs addressing. Such inconsistencies destroy investors’ interest in the company as well as the stock price.
Gross profit fell 13 percent in the quarter to $125 million from $143 million but rose 7 percent for the year to date, to $486 million from $453 billion in 2020.
Gross profit margin in the first nine months of the year, declined in the November quarter to 32 percent from 34 percent in the 2020 and for the quarter it dropped sharply to just 24 percent compared to 32 percent for the 2020 and that was a major contributor to the loss in the period.
Administrative expenses rose 15.5 percent to $129 million in the quarter and increased 26 percent in the nine months period to $378 million. Sales and distribution expenses increased by 8 percent in the quarter and the nine months to $16 million from $15 million in 2020 and from $43 million to $47 million, respectively. Depreciation rose from $88 million in 2020 to $95 million and is likely to rise further with the completion of the power generating plant being installed and is expected to make a major impact on the cost of utilities in the new fiscal year. Finance cost more than doubled in the quarter to $8 million from $4 million in 2020 and jumped 52 percent from $13 million to $20 million for the nine months.
Gross cash flow brought in $130 million down from $185 million in 2020. There was a release of $30 million from working capital but additions to fixed assets consumed $263 million funded by net loan inflows of $328 million. Payment of dividends consumed $26 million, more than twice the $11 million in 2020.
At the end of the period, shareholders’ equity stood at $844 million. Long term loans amounted to $654 million and short term at $11 million. Current assets ended the period at $553 million, including trade and other receivables of $82 million, inventories of $244 million and cash and bank balances of $227 million. Current liabilities ended at $140 million and net current assets at $413 million.
Earnings per share for the quarter was negative 7 cents and a profit of 10 cents for the year to date. IC Insider.com forecasts 27 cents per share for the fiscal year and $1 for 2023.
The stock traded at $5.40 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 20 times 2022 earnings and a PE of 5.4 times fiscal 2023 earnings. Net asset value is $2.33 with the stock selling at 2.4 times book value.

Profit surged 533% in Q2 at Paramount

Profit surged 533 percent in the 2021 November quarter, at Paramount Trading, to $29 million from just $4.5 million in 2020 after tax, but profit for the six months to November, popped by a much slower 141 percent to $48 million from $20 million in 2020. Notwithstanding the growth in the second quarter, the company is far from the profit made in the 2016 fiscal year of $173 million, with an average quarterly profit of $43 million.

Paramount Trading

Sales revenue jumped 30.8 percent for the quarter, to $401 million from $307 billion and climbed 15 percent for the half year, to $770 million from $669 million in 2020.
With profits hitting $101 million in 2017, the company has suffered since, with profit dropping to $53 million in 2020, rising in 2021 to $64 million. The current year seems on track to better the 2017 performance based on results to date.  
Gross profit rose 30 percent in the November quarter to $130 million from $100 million in 2020, but just 11 percent for the half year, with $241 million realized versus $216 million in 2020. Gross profit margin slipped in the first half of the year, to 31 percent from 32 percent in 2020 and declined in the November quarter to 32 percent from 33 percent in 2020.
Administrative expenses rose 5 percent to $91 million in the quarter and increased just 3 percent in the six months to $181 million. Marketing and sales expenses fell 19 percent to $3 million in the quarter but rose 8 percent for the half year to $5.6 million while Finance cost rose 6 percent in the quarter to $13.4 million from $12.7 million in 2020 but fell 6 percent in the half year from $25.8 million to $24.3 million.
According to the company’s Chairman, Radcliff Knibbs in his report to shareholders on the half year results, “Paramount’s improved performance was achieved by employment of a robust growth strategy.” He went on to state, “we will continue to pivot our operations to take advantage of any possible opportunities that may arise.” He concluded that “we expect that our strategic objectives will be realized through strong income growth and cost containment.
Gross cash flow brought in $75 million but after addition to fixed assets and repayment of loan, the net cash position ended at $41 million, pushing cash resource to $302 million at the end of November. Shareholders’ equity stood at $844 million with long term loans at $454 million and short term at $47 million. Current assets ended the period at $948 million inclusive of inventories of $468 million, receivables of $346 million, cash and bank balances of $124 million. Current liabilities ended the period at $437 million. Net current assets ended the period at $511 million
Earnings per share came out at 2 cents for the quarter and 3 cents for the year to date. IC Insider.com is forecasting 12 cents per share for the fiscal year ending May 2022 and 20 cents for 2023. The stock that is now added to IC Insider.com TOP15 list at 11th position, traded at $1.37 on Friday, up 44 percent from a low of 95 cents in 2021 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 11 times 2022 earnings and 7 times 2023 projected earnings. Net asset value is 55 cents with the stock selling at 2.5 times book value.  The stock price has clearly broken the long term declining trend but faces some short term resistance now around $1.40, but the recent results could well allow it to break free of that level.
The company paid a dividend of 4 cents in January 2021 and again in January 2022 amounting to $62 million.

Profit surges 146% at AMG Packaging

ICInsider.com TOP15 2022 selection, AMG Packaging released first quarter results to November, with revenues climbing 55 percent to $270 million from $174 million in 2020 and delivered profit before tax of $45.5 million, 187 percent above just $16.4 million in 2020 and profit after tax rose 146 percent to $35 million from $14.3 million in 2020. The company reported profit after tax of $60.6 million or 12 cents per share for the fiscal year to August 2021.
The latest results were helped by a foreign exchange gain of $4.7 million in the quarter from a loss of $6 million in 2020.
Gross profit rose 40 percent from $53 million to $74 million as input cost rose a bit faster than revenues at 61 percent to $196 million from $121 million in 2020.
Administrative and other costs rose modestly from $32.2 million to $33.3 million.
Cash inflows amounted to $52 million up from$23 million in 2020. Working capital needs and acquisition of fixed assets amounting to $18 million resulted in an increase in cash funds of $5 million and ended in cash on hand at $135 million.

AMG new factory space.

AMG new factory space that will house the new machine.

Investment in Fixed assets stood at $468 million up from $362 million in 2020, with current assets at $503 million which includes Inventory of $207 million up from $129 million at the end of November 2020. Current liabilities stood at $197 million while long term liabilities were $102 million and shareholders equity at $643 million.
ICInsider.com projects full year earnings at 35 cents as the results for the full year will benefit from increased efficiencies to flow from the new box making machine that is now on site, with installation expected to be completed in February. the new machine will print in multi colours and open up new business opportunities for the company.
The stock closed on the Junior Market of the Jamaica Stock Exchange today at a new closing high of $3.40 and a PE of 9.7.
The stock traded at the beginning of October last year at $1.70 and is up 100 percent since then.

Profit drop at Elite but watch this stock

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Revenue of $118 million for the first quarter in 2020 fell 7 percent to $110 million in the first quarter to September 2021, resulting in a loss of $10.3 million compared to a profit of $16.7 million the previous year for Elite Diagnostic.
Reduced revenues impacted profit margin with a decline to 61.4 percent from 66.25 percent in 2020 and from 63.3 percent for the fiscal year to June. Input cost climbed 6 percent to $42 million from $40 million and gross profit fell 14 percent to $67 million from $78 million.
On the surface, the last reported results for the company may drive fear into the minds of investors but that would lead to a miss of potentially profitable investment for the future. “Net profit was impacted by increased administrative expenses, depreciation and foreign exchange losses”, management advised shareholders in their commentary on the results.

Elite Diagnostics

The report to shareholders continued, “revenue was affected by Covid-19 with reduction of operating hours and reduced procedures. Currently, the company’s operational hours are back to normal. An unusually lengthy breakdown of the CT also impacted our revenues during the quarter. Along with our regular preventative maintenance of the machines, the company has invested in equipment and parts to reduce some of the downtimes of the machine breakdowns”.
“The St Ann location revenue is increasing month over month since all modalities became operational in the first quarter of 2020. The company is cautiously optimistic as the effects of Covid-19 more negatively impact the rural areas of the country. The company continues to see steady demand for imaging services at all locations.”
Administrative expenses rose 13.5 percent to $46 million in the quarter from $40 million and depreciation jumped 44 percent to $25 million from $17.4 million in 2020. Finance cost was steady at $10 million, while foreign exchange movement resulted in a $3 million swing from a surplus of $1 million in 2020 to a loss of $2 million in 2021.
In spite of the loss incurred in the quarter, gross cash flow was positive with inflows of $15 million, down from $28 million in 2020. Additions to fixed assets offset by loan inflows utilized just over $15 million as net cash outflow for the period ended at $503,581. At the end of September, shareholders’ equity stood at $449 million, long term loans at $209 million and short term loans at $10 million. Current assets ended at $679 million, including trade and other receivables of $44 million, cash and bank balances of $39 million. Current liabilities ended the period at just $20 million, with net current assets ending at $659 million.
The results ended with earnings per share being a loss of 3 cents for the quarter, down from 4 cents for the quarter in the prior year. Based on the latest results, most investors would be looking elsewhere for investment opportunities. In doing so, they could miss one of the biggest winners in 2022. IC Insider.com forecasts 30 cents per share for the fiscal year ending June 2022, with a PE of 10 times the current year’s earnings based on the price of $3.05 the stock traded at the Jamaica Stock Exchange Junior Market. The company has more room for revenue growth from the addition of new equipment, continued growth in the relatively new St Ann location and additional branches in the future.

Drax Hall branch of Elite.

The company paid a dividend of 9 cents in October this year 2021. Net asset value is $1.29, with the stock selling at just over 2.4 times book value.
Reporting to shareholders in the annual report for the year to June, the chairman, Steven Gooden, stated, “we have been fortunate to see an increased demand for imaging services and were prudent to have sought to capitalize on this demand – through the acquisition of new equipment. We will continue to pursue this growth strategy by installing a new MRI system at the Liguanea branch, which we anticipate will be operational beginning early 2022. This new machine, we expect, will serve to reduce the company’s operating hours and thereby its related expenses. Additionally, with the St Ann branch issues finally resolved, the location is now operating at the desired capacity. Looking ahead, the near to medium term holds the classic combination of challenge and opportunity.On the one hand, we see continued challenges in terms of rising prices, compounded by the depreciation of the local currency; the company pays all its rent and purchases equipment and supplies from overseas in US dollar, so any depreciation in the dollar will affect the bottom line. On the other hand, we also see our cash flows remaining stable, if not strong, amid the continued high demand for our services. The demand is so strong that, were it not for dealing with the issues associated with the Drax Hall branch, the company might well have advanced plans for another branch. We intend to approach growing the company’s footprint with alacrity and all seriousness in the coming year”.

Caribbean Cream stock for the main course in 2022

Sale revenues rose 16 percent for the half year, to August 2021 $1.03 billion from $891 million but rose a mere 5.4 percent for the August quarter, to $486 million from $461 million in 2020 at ice cream maker Caribbean Cream. Management attributed the poorer second quarter performance to the several no movement days imposed by the government during the quarter.
Profit melted in the quarter by 85 percent to just $7 million from $47 million in 2020 and fell 17 percent for the six months to August, to $61 million from $74 million in 2020.
The company has not had a consistent and predictable profit outcome for some years, still, the trajectory has generally been up. In 2019 the company posted $89 million after tax that fell to $55 million in 2020 and $101 in 2021. The 2022 fiscal year profit is poised to beat that of 2021, notwithstanding the setback in the second quarter.

Caribbean Cream posted significant gains in profit in Q1.

Improvement in profit margin in the first half of the year was consistent at 41 percent, with the prior year’s six months but has increased over the 37 percent achieved for the fiscal year to February 2021. But it fell from 50 percent in the 2020 august quarter to 44 percent in 2021. The effect, operating profit fell 6 percent in the quarter to $215 million from $230 million but increased 15 percent for the year to date, to $423 million from $369 million in 2020.
Administrative expenses excluding depreciation rose 25.4 percent to $134 million in the quarter and increased 32 percent in the six months to $249 million, from $188 million in 2020. Sales and distribution expenses increased 8 percent to $30.5 million from $28 million in 2020 for the half year and were virtually flat at $15.5 million for the second quarter. Depreciation charge rose from $59 million in 2020 to $62 million in 2021 for the six months. Finance cost rose in the quarter to $6.7 million from $6 million in 2020 and $9 million to $12 million for the six months.
Gross cash flow brought in $151 million versus $160 million in 2020. Working capital growth used up all but $13 million in 2021 versus $81 million used up in 2020. Additions to fixed assets consumed $83 million for the 2021 half year versus $62 million in 2020. Loan repayment and paying $26 million dividends resulted in outflows of $114 million. At the end of December, shareholders’ equity stood at $869 million, with long term borrowings at $303 million and short term loans at $13 million. Current assets ended the period at $408 million, including trade and other receivables of $65 million, cash and bank balances of $103 million. Current liabilities ended the period at $173 million. Net current assets ended the period at $235 million.
The results in the past few years being inconsistent does not mean that the future will continue in that vein. One focus is on taking a more significant share of the market for ice cream and related products while finding avenues to cut costs. The company announced earlier this year that in collaboration with Power Factor Technologies, a power engineering services company, they embarked on a major project to install a 630 kilowatt capacity Combined Heat & Power plant fueled by LNG at the company’s premises. This project is scheduled to come on stream at the start of 2022 and is expected to generate considerable cost savings and should have a positive impact on results for 2022 onwards.
The stock closed 2021 at $5.70 with a PE ratio of 9 much lower than the average for the market around 15 and below many Junior Market stocks trading around 20 times earnings.

Is Lumber Depot a buy?

After posting outlandish first quarter results that were boosted by inventory profit, Lumber Depot reported more down to earth profit in the second quarter of 5 cents per share, raising the half years earnings to 15 cents from profits in the October quarter of $35 million, down marginally from $36 million in 2020, with half year profit climbing 62 percent to $107 million from $66 million in 2020.

Lumber Depot dominated trading with

First quarter revenues grew an attractive 16 percent, but the second quarter revenues were flat, at $340 million bringing the half year sales to $760 million up 8.6 percent from $700 million for the similar period in 2020. “Revenues and profits for the three months ended October 2021, were directly affected by the lock-down period effected during the late summer that resulted in 17 lost sales days during the quarter and unprecedented disruptions to the construction planning and work cycle as well as to the supply chain for construction inputs. Against this backdrop, we are satisfied to have been able to maintain both revenues and profits for the second quarter at that same level as the prior year,” chairman, Jeffrey Hall advised shareholders in his report accompanying the quarterly.
Gross profit margin rose to 23 percent in the half year from 19.6 percent, while the 2021 second quarter saw gross profit falling to 18 percent versus 21 percent in 2020. Gross profit rose 28 percent from $137 million in the half year in 2020 to $176 million, while the 2021 October quarter saw gross profit just ahead of 2020, with $72 million versus $71 million.
Other income brought in $11 million for the half year compared to $5 million in 2020 and $9.5 million for the quarter versus $1.4 million being interest income in the 2020 quarter.
Administrative and other expenses slipped marginally in the half year to $73 million from $76 million last year and rose moderately from $39 million to $43 million for the quarter. Finance cost amounted to $5 million for the half year against $4.44 million in 2020 and the last quarter $2.2 million with the 2020 period amassing $1.9 million.

An unprecedential construction boom taking place in Jamaica

Gross cash flow brought in $112 million but growth in working capital, additions to fixed assets costing $164 million, resulted in negative funds flow of $28 million for the half year. At the end of October, shareholders’ equity stood at $402 million. No borrowed funds were used to finance the operation at the end of the period. Current assets ended the period at $329 billion including trade and other receivables of $51 million, cash and bank balances of $115 million. Invested funds amount to $119 million. Current liabilities ended the period at $228 million. Net current assets ended the period at $$101 million.
The Paul Scott’s, Stony Hill Investments recently acquired a major interest in the company, what could be in it for them some investors are asking.  Scott sees scope for expansion and growth, in what he considers a well-run company that is simple and easily understood. He feels that they are in a position to benefit from expansion of housing in the country.
ICInsider.com sees potential for major expansion, with Kingston, Portmore, Spanish Town prime areas for expansion focus and there is nothing to prevent them from expanding nationally at some point in time. Lumber Depot could benefit from the close linkage to the Musson Group that has large holdings of real estate within the group or indirectly in the investment companies that can purchase materials for repairs or expansion through them.
The full year results should end up around 30 cents assuming some pickup in sales in the second half. On this basis, the stock may be considered undervalued at the current trading price of around $3.

Fontana raise J$500 million for expansion

Junior Market listed Fontana raised $500 Million of debt capital by way of a private placement of bonds to support the company’s continued growth, which includes plans to develop a warehouse and distribution centre in Kingston and a new store Portmore, the company disclosed.

Artist impression of the Portmore store.

Scotia Investments Jamaica acted as Lead Arranger and Broker for the company that reported its most successful year in 2021, with revenues climbing 14.2 percent to $5.2 billion and profit of $512 million, up a robust 85 percent from $277 million in 2020. The company reported a rise of 17 percent in revenues to $1.3 billion for the September 2021 quarter over that of 2020 and profit after tax rising 35 percent to $61 million. The Portmore expansion, which was telegraphed to investors in late 2018 when it went public, is expected to add to growth in revenues and profit and provide investors with an investment vehicle that seems set to deliver good growth prospects for the future.
“The transaction was executed at a time when BOJ policy rates were increased for the first time in 13 years. The Ministry of Finance and Planning had also recently reopened Government of Jamaica long-term bonds that were taken up at yields that indicated that the long-term rates in the Jamaican Dollar debt space were increasing. Stanley Thompson, Senior Manager Capital Markets said, “In light of the changing market conditions, we pursued a fixed to variable rate bond structure. This financing strategy provided Fontana with the most competitive rate in the short term with the potential for a lower rate in the future if market rates reduce in the longer term.”
Raymond Therrien, COO at Fontana, noted that “Fontana is firmly capitalized for our expansion plans for Portmore in 2022 and continued growth in the various markets we serve across Jamaica.  We continue to explore acquisition opportunities as we grow the Fontana brand. Timing and certainty of execution were important to us. When we approved this transaction, our expectation was to have it closed before the calendar year end.”
Fontana owns and operates a chain of Pharmacies in Kingston, Montego Bay, Mandeville and Och Rios.

 

 

This stock is a must for Xmas buy list

Profit after taxation surged 455 percent to $21.5 million for the second quarter to September from a loss of $6 million in 2020 at Medical Disposables. For the year to date, profit after tax spiked 458 percent to $47 million, up from a loss of $13 million in 2020.
Income from sales jumped 49 percent to $936 million for the September quarter, up from $630 million in 2020 and climbed 42 percent for the six months ended September 2021 to $1.62 billion, from $1.14 billion in the prior year.
The increase in sales in the second quarter “is due to increased business activity as well as the consolidation of the operations of the new subsidiary Cornwall Enterprises Limited. There has been a significant improvement in the movement of pharmaceutical and medical disposable items, especially with fewer lock-down periods when compared to last year,” Kurt Boothe, Chief Executive Officer, reported to shareholders in the report accompanying the financials.
Gross profit after selling and distribution expenses jumped 74 percent in the quarter to $184 million, up from $106 million in 2020 and climbed 85 percent for the half year to $303 million from $164 million in the prior year. The period’s gross profit percentage rose to 25 percent compared to 23 percent in 2020 for the six months and from 24 percent in 2020 to 25 percent for the September quarter.
Finance and other income added $8 million to profit in the September 2021 quarter versus $1.5 million in 2020 and for the half year $10 million versus $3 million in 2020.
Selling and promotional expenses increased 26 percent from $46 million in the 2020 second quarter to $59 million and rose 14 percent from $103 million in 2020 to $117 million for the six month period.

Medical Disposables.

Administrative expenses jumped 80 percent from $63 million in the 2020 second quarter to $112 million and surged 55 percent from $113 million in 2020 to $175 million for the six months. Depreciation charge moved 90 percent from $7 million for the September 2020 quarter to $13 million in 2021 and rose 45 percent for the half year from $14 million to $20 million.
Finance cost fell 26 percent from $38 million to $28 million in the quarter and dipped 9 percent to $45 million $50 million for the half year. Foreign exchange losses amount to $1.75 million in the latest quarter from $4 million in 2020 and $5.4 million for the year to date versus a slight loss of $76,823 in 2020.
Gross cash flow generated $75 million for the six months, but growth in working capital drove it down to a negative $119 million versus negative $190 million in 2020. The cash flow deficit was financed by net loan inflows of $225 million. The company paid a dividend of $18.4 million during the half year. At the end of the quarter, Current assets ended with $1.79 billion, including cash of $95 million, inventories of $944 million and receivables of $745 million. Current Liabilities amounts to $1.24 billion and includes Payables of $741 million and short term loans of $486 million. Net current assets ended the period $549 million. Shareholders’ equity stands at $1.05 million, with long term borrowings at just $284 million.
Earnings per share came out at 8 cents for the quarter and 18 cents for the half year. ICInsider.com forecasts earnings of 70 cents per share for the current year and $1.50 per share for 2023. The stock traded at $5.62 on the Jamaica Stock Exchange Junior Market on Wednesday with a PE ratio of 8 times, current earnings well below the average of 14.5 currently for the Junior Market. The stock gets the coveted ICInsider.com BUY RATED seal.

Profit bolts 27% at Honey Bun but watch 2022

Profit before tax jumped 47 percent at Honey Bun, for the year to September, this year to $289  million from $196 million in 2020 and rose 27 percent to $218 from $172 in 2020 after providing 194 percent more for taxation in the year amounting to $71 million.
For the three months to September, profit before tax rose 30 percent to $81 million from $62 million in 2020 and after an increased charge of 488 percent in profit tax, profit ended 23 percent lower than in 2020, at $43 million.
Sale revenues rose 37 percent for the final quarter, to $590 million from $431 million in 2020 and a healthy 28 percent for the year, to $2.145 billion from $1.675 billion in 2020, bettering the increase of just 8 percent in 2020 over 2019.
The company suffered a decline in the 2017 profit to $95 million after a solid rise to $140 million from $68 million in 2016, but profit dropped again in 2018 by 8 percent to $86 million. Profit bounced in 2019 by 81 percent to $156 million but only grew 10 percent in 2020, but 2022 could turn out to be a bumper year for the company that has been adding to its product line for the local and export markets if the current growth in revenues continues.
Gross profit margin has been pretty steady in recent years and remained constant at 49 percent in the year, compared to 2020 and was up to 51 percent in the September quarter from 50 percent 2020. The effect, gross operating profit rose 28 percent for the year to $1 billion and 34 percent in the quarter to $ million.
Excluding depreciation, administrative expenses rose 23 percent to $352 million, with wage-related costs increasing by 20 percent, which is a major part of the increase. The administrative wage bill jumped to $207 million from $172 million in 2020. The overall wages bill moved from $428 million to $499 million for the year. Contributing to the wage increase is an increase in the number of persons employed to 219 from 207 in 2020.  In the quarter, administrative expenses, net of depreciation, increased 14 percent to $52 million. Selling and distribution costs increased by 19 percent to $348 million for the year and 39 percent for the final quarter to $140 million. Finance costs for the year and last quarter were negligible, but the company generated investment and other income of $19 million for the year, down from $25 million in 2020. Depreciation charge for the year was $71 million, up from $68 million in 2020.
Gross cash flow brought in $356 million, but growth in working capital, purchase of fixed assets of $101 million, increased investments of $34 million and paying $59.4 million dividends reduced to gross intake to $104 million. At the end of September, shareholders’ equity stood at $1 billion, with long term borrowings at a mere $16 million and short term at $6 million. Current assets ended the period at $637 million, including trade and other receivables of $108 million, up from $723 million in 2020, with cash and bank balances of $404 million. Investments in stocks amount to $96 million, up from $61 million in 2020. Current liabilities ended the period at S230 million. Net current assets ended the period at $407 billion, but the company could draw down on the investment in shares that would swell net current assets.
Earnings per share came out at 46 cents for the year and 13 cents for the final quarter. ICInsider.com forecasts $1 per share for the fiscal year ending September 2022 and $1.40 for 2023, with a PE of 10 times 2022 earnings based on the price of $9.98 the stock last traded at on the Jamaica Stock Exchange Junior Market that is trading with an average PE of 14. The stock should double in price over the next twelve months based on the above forecast and gets the coveted ICIsider.com Buy Rated seal of approval.

VM Investments buying Mutual funds

VM Investments (VMIL) has entered into an agreement with Republic Bank (Barbados) to acquire all the ordinary shares in Republic Funds (Barbados) Incorporated, the owner and operator of the Republic Bank Barbados family of Mutual Funds.

VM Investment to acquire Mutual funds.

The funds comprise  Republic Property, Income and Capital Growth Funds. The transaction completion is subject to the approval of regulators in Barbados and Jamaica. “VMIL is in an unprecedented growth mode, and we continue to be keen on strategically expanding our footprint throughout the region,” said Rezworth Burchenson, CEO of VMIL.

“VMIL was selected as the preferred bidder following rigorous pre-defined criteria,” VMIL stated. The required regulatory approval process is expected to be completed within six to nine months but could be extended depending on various factors.
ICInsider.com gathers that the total assets under management by the fund could be in the region of J$1.55 billion.
VMIL, a publicly listed company on the Jamaica Stock Exchange since 2017, reported a 69 percent increase in nine months profit to $612 million over the same period in 2020. Profit after tax for the September quarter jumped 82 percent to $348 million, over 2020 out turn of $191 million.
Growth in profits flowed from a 33 percent surge in revenue for the nine months to $1.77 billion, from $1.3 billion in 2020 and a 33 percent increase in the September quarter from $615 million to $818 million. The “performance was primarily driven by the improved investment climate which contributed to significant growth in gains from investment activities which increased by $520 million (270.71 percent) compared with the same period in 2020. These activities generated revenues of $712.17 million for the period,” VMIL informed investors in the release of the results.
Shareholders’ equity increased by $668 million from $3.9 billion at the end of September 2020 to $4.56 billion at the end of  September and net book value per share ended at $3.04, up from $2.60 in 2020.
The company reported earnings per share of 41 cents for the nine months and 23 cents for the quarter and could hit 70 cents for the full year with a low PE of 8.6, well below the average for the Main Market of 15.4 at the last traded price of $6.10.  the stock is one of ICInsider.com TOP10 stocks.