Company Results — Page 63

Sagicor Financial raises US$320m

August 18, 2015 by IC Insider.com

Sagicor Financial’s Jamaican subsidiary Sagicor Group HQ. earnings

Sagicor Financial, a member of the, successfully issued a new seven-year bond in August 2015 in order to refinance debt, including the US$150 million 10 year bond due in 2016. This new US$320 million bond matures in 2022, and comes with an 8.875 percent fixed rate of interest for the period with interest payable semi-annually.
JP Morgan and Scotiabank, the joint book runners for the Bond, successfully completed the transaction on behalf of Sagicor. In a recent press release, Scotiabank VP, Dylan Coke, stated, “It is important to note that not only was the Bond very successful overall, there was a robust demand for it within the Region.” He added that approximately a third of the Bond’s takers were Caribbean investors.
Rating agencies Standard & Poor’s and Fitch, have both given the Bond issue a ‘B’ rating. This rating has been capped in line with the sovereign rating for Barbados.
Sagicor a Barbados based Life Insurance company is a provider of financial services in the Caribbean and 0perating in 22 countries, including the USA and Latin America, Sagicor has total assets of US $6.2 billion and $774 million in capital. The Sagicor Group offers a wide range of products and services including life insurance, annuities and group and individual health, and has an insured base in the region of two (2) million. Sagicor is a publicly traded company with over 37,000 Shareholders, and is listed on the stock exchanges of Barbados, Trinidad and Tobago and London.
The company is the largest shareholder in Jamaica’s Sagicor Group which includes banking, life and health insurance and fund management.
Sagicor Financial recorded net income from continuing operations of US$37.5 million for the first six months ended June, 2015, compared to the prior year result of US$33.2 million, an increase of 13 percent. Net income from continuing operations attributable to shareholders was US$21.8 million, compared to the prior year of US$19.3 million, an increase of 13 percent. Earnings per common share from continuing operations, was 7.0 US cents compared to the prior year result of6.2 UScents.

Filed Under: Company News, Company Results, General Business News Tagged With: JP Morgan, Sagicor, Scotia

Proven Investments profit jumps

August 18, 2015 by IC Insider.com

Proven Investments reports net profit attributable to shareholders of US$1.32 million or 0.24 US cents per share. In 2014 the company reported profit of US$2.25 million or 0.76 cents per share but included net extraordinary gains of US$1.36 million. Of note total comprehensive income is negative $300,000 after recording a loss $1.6 million in unrealized losses.
Revenue for the three months period net of interest cost amounted to US$5.64 million, an increase of 84.45 percent over the three months ended June 2014 of US$3.06. The increased revenue is mainly from the consolidation of Access Financial Service results into the Group.
For the three months ending June 2015, operating expenses increased by 63 percent to US$3.4 million from US$2.1 million in the prior year period as a result of increases in administrative and general expenses, from the inclusion of PWL Transition and AFS in the financials of the Group.
Proven in the commentary accompanying the quarterly results states that earnings per share is 0.24 US cents but in the financials the company reports it as 0.33 US cents. There is no explanation for the difference and no indication in the report of the number of shares issued, a major omission. The company has 551,595,777 issued ordinary shares according to the Jamaica Stock Exchange which means that earnings is 0.2377 US cents per share or 0.95 US cents for the year. The stock at last traded price of 18.5 US cents is selling at 20 times earnings based on the first quarter results annualised in a market that has an average of 6.5 times this year’s earnings.

Filed Under: Company News, Company Results Tagged With: Proven Investments

Derrimon Trading pumps up profit

August 18, 2015 by IC Insider.com

Derrimon Trading made major stride in improving performance in the year to June with a big surge in profit of $51 million for the six months, a $49.5 million increase over the corresponding period in 2014, with net profit of just $1.7 million. For the quarter to June, profit came in at $31 million versus a loss of $9.4 million, from revenues of $1.58 billion, 16 percent up from $1.35 billion generated in 2014.
The profit out turn for the quarter is 49.6 percent ahead of the profit generated in the first quarter. Earnings per share amount to 11 cents for the quarter and 19 cents for the half year and should ends up around 40 cents for the full year. For the year to December 2014 the company made profit of $51.6 million or 19 cents per share.
The six months results reflect revenue of $2.88 billion, an increase 6.3 percent to $171.47 million over the $2.707 billion reported for the first six months period in 2014. “The growth in revenue was primarily due to improved sales within the retail segment of the business. Gross profit reported for the period was $360 million or 36.2 percent above the $264 million reported for the same period in 2014, the improvement reported in gross profit is due to improved margins within both the distribution & retail segments of the business,” Derrick Cotterell, Chairman and Chief Executive Officer stated in his report to shareholders. For the June quarter gross profit jumped a strong 59.5 percent to $193 million and is well ahead of the 16 percent growth in revenues for the quarter.
Operating expenses for the period was $298 million, which represents an increase of 11.9 percent or $32 million over the $266 million reported for the same period in 2014. For the June quarte, expenses rose 14 percent to $157 million from $137.6 million. “The major factors for this increase were the increase in cost for property rental, staff cost, contracted services such as trucking, and professional fees,” Cotterell stated. Finance charges increased from $21.3 million to $40.4 million or 90 percent in the six months period reported. For the quarter, interest cost amounts to $21.5 million versus $6.4 million. Associated company contributed $12 million in the quarter and $20.5 million for the half year to profit.
Finances| While the profit performance is up strongly, the same cannot be said about the company’s finances. Receivables stood at $495 million at the end of 2014, climbed to $881 million in June and inventories are up to $817 million from $604 million, payables of $1.06 billion moved from $599 million. Loan payments due within twelve months, amount to $338 million. With cash of $137 million on hand and cash flow running around $70 million per annum, the company may have to be going back to the financial market to seek funding to facilitate payment of the loans, but reduction in the amounts due from customers and inventories can deliver the cash to help fund the payments.
IC Insider is placing a Market Watch rating on the stock.

Filed Under: Company News, Company Results, Stocks to watch Tagged With: Derrimon Trading

Ansa McAl grows profit

August 17, 2015 by IC Insider.com

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Ansa McAl Group achieved revenues of $2.87 billion against $2.9 billion in 2014. For the June quarter, revenues came in at $1.47 billion, down slightly from $1.48 billion. Profit before tax amounted to $459 million, for the six months to June, an increase of 11 percent over prior year’s $414 million.
After tax profit was up 10 percent to $302 million for the half year versus $274 million in 2014. Earnings per share rose to $1.75 up from $1.59 in 2014 for the half year.
For the quarter, profit attributable to shareholders of the group rose 4 percent to $164 million, from $158 million or 95 cents per share, after pretax profit had climbed to $250 million in the quarter from $240 million. In 2014 for the full year Ansa made $685 million for shareholders of the group or $3.97 per share. Earnings for the full year should just about exceed that of 2014 but not by a great deal and could well end at around $4.40.

Carib Beer one of Ansa McAl products

Segment profit before tax for manufacturing, packaging & brewing came in at $194.5 million versus $187.6 million in 2014, automotive, trading & distribution suffered a decline to $89.4 million from $97.6 million, insurance & financial services raked in $133 million up strongly from $94 million and media, services & parent company reported $42 million up from $34.6 million.
The company approved an interim dividend of 30 cents per share the same as in 2014 which will be paid on November 6, 2015, October 23, 2015 has been set the Record Date for payment of this interim dividend. The stock last traded on the Trinidad & Tobago Stock Exchange at $67.25.

Filed Under: Company News, Company Results Tagged With: Ansa Mcal, Carib Beer, TTSE

Berger Jamaica in big profit upturn

August 16, 2015 by IC Insider.com

Jamaica’s Berger Paints reported big improvement in profit flowing from a near 14 percent increase in sales revenue to $440.6 million up from $387.3 million, in the 2014 first quarter, with profit ended at $17 million after tax well up on the reported a loss of $372,000 in 2014.
Earnings per share ended at 8 cents and for the year earnings should be in the 55 cents per share region, if the present trend continues which should be helped by the low price of oil on the world market as a major input into the production of paints is fuel oil based.
For 2015 fiscal year to March, Berger reported profit of $67 million after tax and earnings per share of 31 cents from sales revenues of $1.85 billion.
Gross profit was slightly up on 2014 with $1.286 billion realized in the March 2015 quarter and $1.257 billion in 2014. ”The company continues to yield benefits from process improvements, energy cost savings and its plant and Machinery upgrade, these along with growth in sales contributed to the profit performance” Mustafa Turra, General Manager reported in a short report to shareholders.
Berger last traded on the Jamaica Stock Exchange at $2.55 but that is before the above results were disclosed on Friday.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Berger Paints, Jamaica Stock Exchange

138SL 2016 profit could hit $80M

August 16, 2015 by IC Insider.com

“Handing over of the buildings by the contractor will be in stages, scheduled for August 10, August 20 and mid-September. The Management team is now in place and support staff have been recruited to deliver a new experience in student living and to welcome the first batch of 576 students at 138 Student Living in early August 2015,” John Lee, Chairman of the company advised shareholders recently in the release of their June quarter financials.
Based on the completion the units, the company looks set to earn around $80 million in profit in its first full year of operating, well above a loss of $71 million that was projected in the prospectus. By year 2 profits should be hitting the $120 million mark or 30 cents per share, on the assumption that the exchange rate will remain relatively stable versus the US dollar.
Phase 1 of the Construction commenced September 2014 and is being financed by a joint $1.35B loan from Jamaica Mortgage Bank (JMB) and National Commercial Bank (NCB) and from proceeds of the public share issue of more than $500 million raised. Long term funding, by way of a bond, to repay the construction loan received from Jamaica Mortgage Bank and National Commercial Bank has been secured and will be paid on the completion of the buildings, Lee stated.
Construction of phase 2 consisting of another 576 rooms is scheduled to commence in September 2015 and will come into operation in August 2016. Negotiations have commenced with the preferred contractor which should lead to a final construction contract.
The company has signed a new concession agreement with UWI Mona for the restoration and

138 Student Living, artist impression of a block.

reconstruction of certain traditional halls, with the room count under this agreement totalling approximately 750, operational for a maximum period of 35 years. The Concession is being done under a 100 percent subsidiary, 138 SL Restoration.
The company incurred cost on construction of just over $1 billion up to June that was partially financed by $617 million in loans.
The company has not yet commenced operation, as such there is no income statement as all cost is capitalized as a part of the construction expenditure.
Profit or loss| The company had projected rental income of $335 million based on the exchange rate being at $122 by September 2015 and J$131 by September 2016. Nevertheless, rental income is more likely to be in the region of $320 million, assuming all rooms are rented for 12 months. On the plus side, the cost of electricity that was projected at $67 million may come in under that amount with the fall in the cost of electricity since last year. Interest cost was projected at $270 million but that seems to be far over the actual figure that is likely to be incurred and charged against income in the year to September 2015. Actual interest plus preference dividend chargeable against income in 2016 is likely to be the order of $100 million based on the amount borrowed to complete phase 1 and the issued preference shares of $168 million.

Filed Under: Company News, Company Results Tagged With: 138 Student Living, Jamaica Mortgage Bank, National Commercial Bank

Investments push JMMB profit 111%

August 16, 2015 by IC Insider.com

JMMB Group posted a net profit of $586 million, an increase of 111 percent over the profit of 2014 after asset tax of $398 million was fully expensed in the 2015 quarter. JMMB earned profit of $278 million and earnings per share of 36 cents for the quarter ended June, this year. The profit for the quarter shows a marked improvement over the mere $79 million reported in the March quarter.
Net Interest Income grew year-over-year moving from $1.29 billion to $1.44 billion, an increase of J$147 million or 11.4 percent. This increase was driven mainly by increased margins, resulting from growth in Group’s loan portfolio in Jamaica and Trinidad coupled with reduced costs of funds.
“Other operating revenues, namely, gains on securities trading, foreign exchange margins from cambio trading and commission income, showed increases of 62 percent, 20.5 percent and 39 percent respectively, driven largely by increased volume activity and taking advantage of one-off market opportunities,” Noel A. Lyon, Chairman and Keith Duncan, Group Chief Executive Officer, advised shareholders, in a release accompanying the quarterly.
Net gains on securities trading, accounted for $1.23 million, was generated in the 2015 period and in 2014, $757 million. After booking the large investment gains, the group still has investment revaluation reserve amounting to $2.25 billion at the end of June which can be shifted to the normal profit stream.

Keith Duncan, Group Chief Executive Officer of JMMB

“Our operations in the Dominican Republic continue to produce positive results contributing net profits of J$51.5 million for the quarter. The Group is now poised to expand its range of services in the Dominican Republic with the approval of its money market mutual funds. In July 2015, the Monetary Board approved our acquisition of Banco Rio de Ahorro Y Credito, a savings and loan bank”, Lyons and Duncan stated.
The released from management continued, “In Trinidad and Tobago, the Group’s operations continue to move in a positive trajectory, contributing J$41 million for the quarter. Management continues to build out its integrated financial services model through JMMB Investments Trinidad and Tobago and its commercial banking arm, Intercommercial Bank.”
Operating expenses for the quarter totalled $2.3 billion, up 13 percent compared to $2 billion for the prior year. This increase was mainly attributable to staff related costs, asset tax and expansion of business activities regionally.
The asset base of the JMMB Group increased by J$4.8 billion to J$222.5 billion from J$217.7 billion as at 31 March 2015. This increase in assets was mainly funded by client deposits and repurchase agreements.

Filed Under: Company News, Company Results Tagged With: JMMB

Kingston Properties pulls in $650m

August 16, 2015 by IC Insider.com

One of Kingston Properties units at Red Hills Rd, Kingston

Kingston Properties (KPREIT) advises that approximately Six Hundred and Fifty Million Dollars was raised from its recent Rights Issue.
The Rights Issue which opened on Wednesday, July 22 closed on Friday; August 7, 2015 after an extension by a week. The company stated that there were over one hundred (100) subscribers to the issue.
The plan was that the issue would raise at least $954 million from the 136,271,694 units on offer at $7 each. The amount raised more than doubled the issued share capital that was just over 68 million shares, moving it to 160 million units and the overall equity base to $1.5 billion.
KPREIT reports currently owning fifteen units in the Miami Loft II condominium building, as well as a nineteen unit residential complex in South Florida and an office and warehouse complex in Jamaica. The company will use the proceeds to pursue expansion plans in various real estate markets in the United States and Caribbean countries.
The company is yet to release the second quarter results. For the first quarter, rental income of $25.6 million was recorded versus $25 million in the prior year, with profit before tax of $2.9 million compared to a loss $680,000 in 2014 and total comprehensive income came in at $12.3 million for the March 2015 quarter versus $18.2 million in 2014.

Filed Under: Buy Rated, Company News, Company Results

Carreras recovers all taxes

August 16, 2015 by IC Insider.com

The balance of $870 million due from the tax department for taxes over paid by its subsidiary, Cigarette Company of Jamaica was recovered in full by the company, Carreras reported in a release of the June quarterly results.
This means that the large special capital distributions that the company has been paying for a few years will soon come to an end. The company declared a total dividend of $1.80 per share payable September 3.
Carreras also reported a 6 percent improvement in profit flowing from a 1 percent increase in sales revenue of $2.6 2 billion, up from $2.59 billion in the 2014 first quarter, with profit ending at $622 million, in 2014 profit of $589 million was generated. Gross profit was slightly up on 2014 with $1.286 billion realized in the June 2015 quarter and $1.257 billion in 2014.
The company suffered from decline in volume sales in the quarter due to the price increase effected earlier in the year, which saw a shift in sales taking place in the March quarter as dealers sought to take advantage of the price change. Administrative cost fell from $372 million to $356 million while distribution and marketing expenses declined from $185 million to $164.
Earnings per share came in at $1.28 and should be in the $6 range for the full year.

Filed Under: Company News, Company Results Tagged With: Cigarette Company of Jamaica

Unilever trying to recover from IT issues

August 10, 2015 by IC Insider.com

Some of Unilever products

Unilever Caribbean operations suffered from dislocations associated with a new IT platform, resulting decline in sales and profit particularly in the first quarter.
The company has now reported that in the second quarter the issues were resolved and service levels are now fully restored to our customers, thanks to enormous effort by employees succeeded in bringing about the turnaround. Despite these efforts, half year sales declined by 10.3%, driven predominantly by the declines in the first quarter performance. Profit after tax fell to $18.3 million down from $30.8 million in the prior year six months period. Earnings per share were 70 cents compared to 117 cents in the prior year. For the June quarter, the company generated revenues of $140.5 million versus $148 million in 2014 resulting in aftertax profit hitting $12.5 million from $17 million in 2014. A fall in selling, distribution and administrative cost in the 2015 second quarter versus 2014 helped cushioning the fall off in revenues and decline in gross profit that fell by $8.6 million, in 2014 there was $5.4 million in other revenues with none being earned in 2015.
“Looking forward we expect the challenges of the regional economies to impact our growth prospects. In Trinidad and Tobago the uncertainty of the upcoming elections continues to affect the business environment. Regionally, recovery continues to be slow due to the depreciation of local currencies and shortage of US dollars across markets, which is cause for concern. While the recovery from the first half of the year remains a challenge, Unilever Caribbean is optimistic that the investment in our new IT systems and infrastructure will build the foundation for future growth. However, at this time the outlook for the rest of the year remains moderate” Pablo Garrido, Chairman of the company reported to shareholders.
The stock last traded on the at $67 placing the PE at over 30 times earnings.

Filed Under: Company News, Company Results Tagged With: Trinidad Stock Exchange, Unilever Caribbean