Kremi ekes out small profit

November 4, 2023 by

Caribbean Cream reported revenues of $646 million for the August quarter this year versus $645 million in 2022, with the year to date revenues slipping to $1.25 billion from $1.257 billion in the previous year. Profit fell to $3.6 million in the August quarter from $7 million in 2022 and rose to $10 million for the six months from $8.5 million in 2022.

Caribbean Cream Kingston outlet

Improvement in production cost pushed gross profit up 10 percent to $390 million for the half year versus $354 million in 2022 and $205 million for the quarter to August this year, up 8.5 percent from $189 million in 2022. Cost savings were only realised in some areas as administrative expenses and finance costs climbed over 2022. Administrative expenses increased 6 percent to $158 million from $149 million, with finance costs climbing 60 percent to $24 million, from $15 million in the August 2022 quarter. For the half year, administrative costs rose 7 percent to $306 million from $286 million the previous year, while finance costs jumped 56 percent from $27 million to $42 million for the half year.

Finance cost associated with the expansion of the warehouse and building out of the cogeneration energy plant is being written off directly as a current expense rather than capitalising it, with the equipment as such, the reported profit over the past three years appears understated as a result of the treatment of this item. Accordingly, the 2023 full year’s profit should be closer to $70 to $80 million than the above figure, and the 2023 half year’s figure should be around $37 million.
Operations generated Gross cash flow of $77 million, growth in working capital and $206 million spent in addition to fixed assets offset by loan inflows net of outflows of $238 million, resulting in funds growing by $78 million during the six months.
Considerable sums have been spent on plant and machinery to improve efficiency and, by extension, increase profit. Accordingly, $439 million was expended over the past year, bringing the gross amount in fixed assets to $2.7 billion from $1.7 billion at the end of February 2022. Most of the new expenditure went into equipping a new cold storage plant that has expanded freezing and cold storage capacity, with some spent on the cogeneration energy plant, which is intended to cut energy costs.
The company remains financially healthy, with current assets of $539 million, including trade and other receivables of $114 million, cash and bank balances of $145 million and inventories of $248 million, up from $183 million in August 2022. Current liabilities ended at $225 million and net current assets at $314 million.
At the end of August, shareholders’ equity amounts to $836 million, a rise from $807 million at the end of August 2022, with long term borrowings at $1.2 billion and short term loans at $43 million.
Earnings per share for the quarter was one cent and 3 cents for the year to date. IC Insider.com computation projects earnings of 55 cents per share for the fiscal year ending February 2024, with a PE of 7 times current year’s earnings based on the price of $3.95 the stock traded at on the Jamaica Stock Exchange Junior Market on Friday. The PE ratio compared with a market average of 10.7. Net asset value ended the period at $2.21, with the stock selling at just under two times book value.
The company has a checkered profit history, as shown by the attached chart of profits, since 2015 and has struggled with increased costs since the disruption caused by COVID-19. The situation is worsened by the treatment of interest incurred to finance the new warehouse.

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Profit bounce at Margaritaville

November 2, 2023 by

Margaritaville Turks was one company delivering improved revenues and profit for the 2023 period to August versus 2022, mostly reflecting improvement in tourism traffic to the Caribbean region.
The company operates a restaurant solely in the Turks and Caicos Islands, and delivered revenues of US$1.8 million in the August 2023 quarter, up 27 percent from US$1.42 million in the prior year and produced gross profit of $1.33 billion this year versus US$1.033 million in the previous year.
Net profit came in at US$230,000 for the quarter against US$94,000 in 2022, even as administrative expenses climbed to US$979,000 from US$833,000 in the previous year, with depreciation charge being flat at US$69,000. Other operating expenses amount to US$44,000, with none incurred in the last year and finance cost was just US$6,000 for the current year, down from US$29,000 in the last year’s first quarter.
The operations generated a gross cash flow of US$300,000, but US$496,000 advanced to a related party, resulting in negative flows of US$74,000, reducing cash funds to a mere $49,151.

Margaritaville located in the Turks & Caicos Islands

Current assets ended the period at US$3.8 million and include US$2.7 million due from related companies, up from US$2.2 million in 2022. Current liabilities ended the period at US$1.96 million, from US$1.89 in 2022. Net current assets ended the period at US$1.8 million.
At the end of August, shareholders’ equity amounts to US$4.2 million, with long term borrowings at US$166,808 and short term at US$100,000.
Earnings per share for the quarter was 0.34 US cents, up from 0.14 US cents for the August 2022 quarter. IC Insider.com computation projects earnings of 2 US cents per share for the fiscal year ending May 2024, with a PE of 6.5 times the current year’s earnings based on the price of 12.7 US cents the stock traded on the Jamaica Stock Exchange, with an average PE of 12. Net asset value ended the period at 6 US cents, with the stock selling at two times book value.

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Carib Cement Q3 profit jumps 60%

October 30, 2023 by

Caribbean Cement recorded a solid 48 percent increase in pretax profit to $2.6 billion, from $1.7 billion in 2022 for the third quarter, with the nine months at $5.6 billion, marginally lower than the $5.8 billion reported in 2022. After taxation of $617 million in the third quarter and $517 million in 2022, profit ended at $1.94 billion, up a healthy 60 percent from $1.2 billion in 2022. For the nine months of 2023, profit after accounting for taxation of $1.5 billion and $1.86 billion in 2022 ended at $4.39 billion, from $4.25 billion in 2022.
Earnings per share for the quarter was $2.28, up from $1.42 in 2022 and $5.15 versus $5 for the year to September.
Revenues jumped a robust 13.4 percent to $7.0 billion for the third quarter to September this year over the $6.2 billion in the 2022 period and were up 8 percent to $21.27 billion for the nine months to September 2023 compared to $19.68 billion in 2022.
While revenues were racing ahead, cost of sales remained flat during the third quarter at $3.48 billion against $3.42 billion in the September 2022 quarter, but it rose 18 percent in the year to date period from $10.8 billion in 2022 to $12.77 billion. Gross profit in the quarter jumped 28 percent from $2.75 billion to $3.5 billion in the September quarter and, for the year to date, declined from $8.85 billion in 2022 to $8.5 billion. Administrative expenses rose a significant 36 percent from $225 million in the September 2022 quarter to $304 million in 2023 and popped 17 percent from $695 million in the year to September 2022 to $811 million in 2023.
Notwithstanding the increase in revenues, distribution costs fell from $433 million in the September 2022 quarter to $354 million in the current year and moved from $1.2 billion down to $1.1 billion in the nine months to September.
Other expenses, mainly fees paid for management and royalty to the parent company that was flat year over year, rose to $254 million in the September quarter from $166 million in the prior year, and for the nine months, it was marginally down to $669 million from $680 million in the preceding nine month period.
Finance costs for the September quarter fell to $48 million, down from $154 million in the 2022 quarter and for the nine months, from $430 million to $142 million in the current fiscal year to September.
In relation to the cash flows, “Net cash provided by operating activities” was $5.7 billion for the nine months and $2.46 billion for the quarter. The cash flow generation during the quarter and the available cash at the beginning of the period have allowed the Group to invest $4 billion during the nine months of the year and $2 billion during the second quarter, leaving the company with $639 million in cash and bank balance at the end of the period.
As a result of the excellent performance, the company paid a dividend of $1.8976 per share, amounting to $1.6 billion, a 37 percent rise over the $1.17 billion paid in 2022 and resulting in Shareholders’ equity ending at $22.76 billion at the end of September, a sizable improvement over the $18.75 billion at the end of September 2022 and $20 billion at the end of December last year.
Total current assets ended at $10.67 billion as of September 2023, compared with $7.47 billion in 2022, with inventories being $4.68 million and $4.53 billion in 2022. Receivables from related parties amounted to $4.1 billion, up from $1.1 billion in 2022, with the 2023 balance including a deposit investment account of J$4 billion, the equivalent of US$26 million in CEMEX Innovation Holding Limited, which generates interest at a rate equal to the Western Asset Institutional Liquid Reserves Fund rate plus 30 basis points on a daily basis.

Caribbean Cement silos

Total current liabilities stood at $7.1 billion, down from $8.2 billion in 2022. There was only $228 million in other financial obligations outstanding at the end of September, down from $1.89 billion at the end of September 2022.
Caribbean Cement “implementation of its requisite business strategies has been paying dividends as the company continues with expansion and the achievement of significant milestones. It also included the company’s ability to adequately supply the local market, having enough spare capacity to export 3,500 metric tonnes of high-early strength cement to the Turks and Caicos Islands. In the next quarter, the company expects to build on its current achievements and maximise its performance as it remains optimistic about its future. The company will also continue to undertake its flagship social impact initiatives of installing concrete pavements in certain communities across the island,” the company stated in their commentary on the results.
With ICInsider.com projected earnings at $7, the stock still has the potential to go higher from the current price of $50.32, with the current PE at just 7 times 2023 earnings compared to an average of 12 for the market. Not to be ignored are a few developments that augurs well going forward. The continuing expansion to hotel rooms and road expansion should ensure continued demand for cement for several years ahead. Immediately, the September quarter profit suggests that earnings in 2024 could exceed $9 per share if the current trend continues into 2024.

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Profit at Dolla jumps 59% in Q3

October 27, 2023 by

Microlender Dolla Financial reported results for the quarter ending September, with profit rising a solid 59 percent to $102 million after tax, from $70 million in the prior year’s September quarter and a profit of $328 million for the nine months to September a b 74 percent increase over the $188 million generated in 2022 for the similar period.
Profit for the September quarter was marginally lower than the June quarter. Still, revenues from loans of $300 million in the September period were slightly higher than the $294 million in the June quarter.
After provision for loan impairment losses, net interest income climbed 65 percent to $243 million in the quarter, from $150 million in the prior year and by 75 percent to $724 million for the nine months versus $414 million in 2022.
Administrative costs climbed faster than revenues, with a jump of 83 percent for the quarter to $150 million and the nine months by 92 percent to $420 million.
Loans receivable net of provision for loss amount to $2.6 billion, an increase of $1.5 billion or 125 percent over September 2022, and grew by just $69 million over the June quarter. Funds borrowed amount to $1.85 billion and increased $100 million over the June quarter. Funds on hand are almost $147 million, with most available for lending.
The company needs to take on additional debt to maintain the hectic growth in the loan portfolio and profitability going forward. The significant acquisition of shares in the company by Mayberry Investments and Supreme Venture should provide them with a constant potential source of funding to maintain the growth in the loan portfolio, supportive of an annual increase in profits going forward.
According to the company’s commentary on the results, “business loans accounted for 82 percent of the total loan portfolio, while personal loans accounted for the remaining 18 percent. Secured loans constituted 81 percent of the portfolio, with unsecured loans making up the remaining 19 percent. The collateralised loan strategy has proven instrumental in maintaining the loan portfolio quality, with non-performing loans holding steady at 9 percent, remaining within budgeted expectations and below the sector average.”
As of September, shareholders’ equity stood at $938 million, up from $715 million at the end of September last year.
Profit resulted in earnings per share of 4 cents for the quarter and 13 cents for the year to date. IC Insider.com computation estimates earnings of 20 cents per share for the fiscal year ending December 2023, with a PE of 12.8 times the current year’s earnings based on the price of $2.56, the stock traded on the Jamaica Stock Exchange Junior Market. The PE ratio compares with an average of 10.9 for the Junior Market but less than 19.5 times the top 9 stocks. Net asset value ended the period at 38 cents, with the stock selling at 6.6 times book value.

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AMG 2023 profit slips, watch 2024

October 24, 2023 by

Profits fell slightly at AMG Packaging, producers of carton boxes, in the 2023 fiscal year to August to $94 million, but a close look shows the 2023 performance to be better than that for 2022, with the current year’s figures including a one off charge, plus vastly increased taxation than in the previous year.

AMG Packaging

Profit after tax declined from $105 million in the previous year, but this is after taxation climbed from $18 million to $39 million in the current year and a one off charge of $11 million, with revenues coming out at $1 billion in the current year, up from $996 million in 2022. Revenues for the fourth quarter were $230 million, down 12 percent from $257 million, management indicated that the reduction represented reduced production for one month—profit after tax ended at $19 million, down from $25 million in the previous year. The 2023 profit was declined by the abovementioned charge related to credit taken from 2017 to 2021 for payroll taxes not allowed for Junior Market companies. Had this not been the case, profit would have been higher than in the prior year, ending at $30 million instead of the lower figure reported.
In addition, taxation for the quarter was $11 million versus $5 million in the prior year, even as profit was lower. Pretax profit of $30.5 million in the final quarter would have been $41 million, excluding the one off charge versus $29.5 million, reflecting a solid 39 percent improvement and the full year $144 million compared with $123 million for an increase of 17 percent.
The company benefitted from the reversal of impairment losses and foreign exchange gains amounting to $4.5 million in the fourth quarter and $3 million for the twelve months, this compares with a loss of $5.4 million in 2022 for both the final quarter and the full year.
Even as revenues fell in the final quarter, gross profit rose to $79 million from $75 million in the previous year as the cost of sales declined 17 percent in the period from $183 million to $152 million. Gross profit jumped to $312 million from $273 million for the year to August, with cost of sales falling just 3 percent from $723 million to $700 million. Management Discussion and Analysis report stated that the reduction in manufacturing cost “was due mainly to the increase in efficiencies in our production processes.” From all indications, the new machine, installed before the start of the 2023 fiscal year, resulted in improved performance, with lower labour costs that flowed from operating one shift instead of two and reduced overtime. Working one shift would also reduce energy costs in using the machines.

New addition to the factory

Administrative costs were well contained at $27 million for the quarter, which was similar to that of 2022, but it grew 17 percent to $111 million for the year from $95 million in the previous year. Finance cost was relatively stable, coming in just around $2 million for the quarter and $8 million for the full year versus $8.7 million in the previous year. Depreciation climbed to $11 million from $8.4 for the quarter and $43 million from $30 million last year.
The operations generated Gross cash flow of $176 million and ended with increased funds for the year at $174 million after significant changes in working capital primarily relating to a reduction in amounts tied up in inventories and paying down amounts due to creditors.
Current assets ended the period at $590 million compared with $639 million in 2022. Trade and other receivables amount to $137 million, inventories amount to $156 million, down from $394 million in 2022 and cash and bank balances ended at $297 million. Current liabilities ended the period at $120 million. Net current assets ended the period at $469 million.
At the end of the year, shareholders’ equity amounts to $1.28 billion, up from $1.18 billion in 2022, with long term borrowings at $77 million, down from $81 million in 2022 and short term at $14 million, which is similar to the amount due at the end of 2022 fiscal year.
Earnings per share for the quarter was 4 cents and 18 cents for the year. IC Insider.com computation projects earnings of 40 cents per share for the fiscal year ending August 2024, with a PE of 6 times current year’s earnings based on the price of $2.35 the stock traded at on the Jamaica Stock Exchange Junior Market on Monday. Net asset value ended the period at $2.50, with the stock selling at a slight discount to book value.

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Disappointing early Q3 results

October 22, 2023 by

Profits are the primary driver of stock prices. The early release of third quarter results for 2023 for some listed companies has been less than inspiring, with the majority reporting lower revenues and profits for the third quarter and, in some cases, reduced revenues and profits for the year to date.  That is not the results the market needs to lift a sagging market weighted down by some poor profit results for the year and tight monetary policy being pursued by Jamaica’s Central Bank.

Margaritaville, located in the Turks & Caicos Islands

So far, Companies reporting include AMG Packaging, Caribbean Cream with it trading brand  Kremi, Express Catering, Image Plus Consultants, Knutsford Express, Margaritaville, Mayberry Investments, Paramount Trading and Portland JSX Fund.
AMG Packaging reported a slight drop in full year earnings to August of $94 million. The 2023 performance is better than that of 2022, with the current year’s figures including a one-off charge and vastly increased taxation than in the previous year.
Profit after tax is down from $105 million in the previous year, but this is after taxation that climbed from $18 million to $39 million in the current year. Revenues in the current year come out at $1 billion, up from $996 million in the prior year. For the quarter, revenues fell to $230 million from $257 million, with profits after tax of $19 million, down from $25 million in the previous year. The 2023 result was dragged down by a one off charge relating to payroll tax credits that were not allowed in prior years, amounting to $11 million, had this not been the case, profits would have been higher than for the previous year.  Additionally, the taxation charge for the year was $11 million versus just $5 million in the prior year’s fourth quarter.

Caribbean Cream reported revenues of $646 million for the 2023 August quarter versus $645 million in 2022, with the year to date revenues slipping into $1.25 billion from $1.257 billion in 2022. Profit fell to $3.6 million in the August quarter, down from $7 million in 2022, but is up to $10 million for the six months from $8.5 million in 2022.
Revenues and profits rebounded strongly at Express Catering in the first quarter to August 2023 versus 2022. Net profit for the quarter ended at US$843,114 for EPS of 0.051 US cents, up 29 percent from a profit of US$652,841, with EPS of 0.040 US cents in the similar period in 2022 as revenues climbed 30 percent to US$5.4 million from US$4.9 million in 2022 aided by a strong rebound in tourism traffic passing through the Sangster International Airport in Montego Bay, as well as the opening of new restaurants in the airport.
Image Plus reported sharply lower second quarter results, a 40 percent drop in earnings from $64 million before tax in 2022 to just $39 million for the second quarter as revenues declined by 7 percent to $254 million from $274 million in 2022 but remained flat for the half year at $554 million, resulting in pretax profit falling 33 percent from $153 million down to $103 million. The company indicated that revenues decreased due to machine breakdown.
Revenues at Knutsford Express jumped 18.5 percent for the first quarter ending August to $492 million from $415 million in the 2022 first quarter. The revenue improvement translated to slight growth in profit as cost rose nearly 26 percent to $380 million from $303 million. The company stated that it increased its workforce to manage growth. Before tax, profit increased marginally to $86 million from $84 million in the prior year.
Margaritaville was one company delivering improved revenues and profit for the 2023 first quarter, primarily reflecting improvement in tourism traffic in the Caribbean region. The company generated revenues of US$1.8 million in the August 2023 quarter, up solidly from US$1.42 million in the prior year and delivered gross profit of $1.33 billion this year versus US$1.03 million. Net profit surged to US$230,000 for the year to date against just US$94,000 in 2022.
Mayberry Investments released nine months’ results with a $985 million loss for the third quarter and $693 million loss for the nine months after reporting significant investment losses of around $2 billion in both periods, but shareholders’ equity remains strong at $15.75 billion.

Paramount

Paramount Trading reported lower revenues and profits in the first quarter ending August, following what the company states is the conclusion of the best major six month contract to supply admixture to the construction sector. Revenues declined by 28 percent to $426 million from $595 million the year before and profits fell by 32 percent to $65 million from $97 million the previous year.
Portland JSX Fund reported a worsened loss of US$1,457,327 for the quarter to August this year, up from US$416,643 in the similar quarter in 2022 and a loss of US$8.71 million versus a profit of US$376,681 profit for the six months to August 2022.
The results reflect net fair value losses on investments of US$1.3 million in the quarter and US$8.3 million for the half year.

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Profit drops at Pulse

October 14, 2023 by

A near $300 million drop in the surplus on revaluation of investment properties in the 2023 fiscal year pushed profits down by $200 million for Pulse Investments to $1.57 billion from $1.77 billion in 2022 but the company generated positive cash flows from operations of $145 million compared to $170 million in the previous year.
The company expended $489 million on investment property and $169 million on development expenditure during the year, reducing the overall cash on hand to just $90 dollars compared to $217 million in the prior year. According to the audit report, three apartment units were contracted for sale which should result in a loss of $32 million and realise $117 million in total cash, data from the audited statement suggests.
Revenues as reported by the audited financial statements are $949 million, up marginally from $931 million in 2022 and reflect amounts due on barter agreements of $741 versus $743 million in 2022. Model agency generated income of $63 million versus $56 million in the previous year and rental income brought in $154 million versus $132 million in the prior year. Unrealised fair value adjustment on investment Properties amounts to $972 million down from $1.26 billion in 2022.
Pulse incurred Administrative and other expenses of $321 million during the year and $271 million in 2022, with impairment on receivables jumping from $39 million to $53 million, insurance moving from $5 million to $13 million and legal and professional fees up from $11 million in 2022 to $16 million in the latest financial year. Finance cost ended at just $13 million during the latest financial year, down from $45 million in 2022 while taxation dropped sharply from $97 million in 2022 to just $18 million in the latest financial year.

Kingsley Cooper Chairman of Pulse Investments.

Earnings per share came in at $0.24 down from $0.27 in 2022. ICInsider.com estimates 2024 earnings at 30 cents per share with the stock having a PE ratio of just under 7 based on the last traded price of $2 on the Jamaica Stock Exchange Main Market .
Shareholders’ equity climbed to $9 billion in 2023, up from $7.44 billion in the previous year. The current year’s results pushed net asset value (NAV) to $1.39 per share, with the stock price trading at a premium to NAV. Borrowings ended the year at just over $719 million versus $632 million in the previous year. Amounts due to related parties rose to $1.3 billion from just over $1 billion in 2022. Current assets stand at $255 million versus $265 million in 2022 and Current liabilities amount to $135 million at the end of June this year, up from $112 million at the end of June 2022.
At the end of the June 2023 financial year, advertising entitlements amounted to $2.3 billion versus $1.8 billion in 2022 and investment property amounts to $7.77 billion at the end of June this year versus $6.4 billion at the end of the previous year.

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Q3 profit drops at Main Event

October 14, 2023 by

Revenues at Main Event Entertainment rose 45 percent to $1.59 billion for the nine months to July from $1.09 billion in 2022 but took a 29 percent hit in the third quarter to $428 million from $602 million in 2022 with profit reflecting the same pattern with $216 million for the nine months up 208 percent from $104 million and fell 85 percent from $124 million in 2022 down to a paltry $23 million.
Direct Expenses fell 33 percent in the July quarter to $204 million from $304 million in 2022 and rose 28 percent from $583 million to $748 million in 2023. Gross profit slipped 25 percent to $224 million from $298 million in the quarter and jumped 64 percent to $839 million from $511 million for the nine months.
Administrative and general expenses climbed 34 percent to $162 million in the quarter from $121 million in 2022 and from $284 million to $495 million. Depreciation charges remained fairly constant at just over $29 million versus just under $29 million in 2022 and for the nine months $81 million compared with $86 million in 2022.
Accordingly, ICInsider.com forecast is for earnings of 90 cents per share for the current year ending October, compared with 72 cents per share for the nine months to July this year and 8 cents per share for the July quarter. The stock traded at $14.11, on Friday with a PE ratio of 17.2 times ICInsider.com’s latest projected earnings of 90 cents per share. The earnings value the stock at the higher end of the Junior Market average PE of 11 times current years’ earnings.

Main Event

The company generated gross cash flows of $340 million and after purchasing of fixed assets and loan repayment net cash amounts to $62 million and ended the period with cash and cash equivalent of $190 million.
The company’s finances remain b with current assets of $799 million and current liabilities of $330 million with net working capital of $469 million. Funds borrowed to help finance operations totalled $100 million and shareholders’ equity stood at $857 million.
In February 2017, the company’s shares were listed on the Junior Market of the Jamaica Stock Exchange and entitled them to a reduction of income tax for ten years with 100 percent tax free up to January 2022 and 50 percent to January 2027.

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ISP jumps 94% & Lasco Distributors 70%

October 11, 2023 by

ISP Finance the leading price mover in the Junior Market jumped 94 percent for the year, to the end of September while Lasco Distributors soared 70% followed by Main Event, with a solid gain of 58 percent, Caribbean Assurance Brokers rose a robust 56 percent and Regency Petroleum up a respectable 46 percent and cross country passenger mover, Knutsford Express, 45 percent, to close out the top six winners against a decline by just 0.7 percent for the Junior Market over the same period.
The performance comes even as Jamaica’s Central Bank maintained a very tight monetary policy with interest rates on Certificate of Deposits close to 10 percent for most of the year so far.
Relatively high interest rates were only one part of the negative drag on the market. Profit results released during the period for several companies were lower than the comparative period in 2022 and investors hammered those stocks and by extension pressured the market index but rewarded most companies with growing profits, with higher prices.
Junior Market performance was vastly better than the Main Market with most of the top ten companies recording b increase in profits for the first half of the year over 2022.
ISP Finance, a microfinancing company led the Junior Market following news that two new directors with experience in the financial service sector and who had worked with in the past in arranging deals for them were appointed to the board. There was also speculation that the majority shares could probably change hands sooner rather than later. There is also the expectation for increased lending to customers is expected to impact revenues and profit positively following a decline in the half year profit when loans jumped to nearly a billion dollars from under $800 million. Lasco Distributors profits for the fiscal year to March jumped and was followed by improved results in the June Quarter as investors rewarded the performance with s solid price movement. Main Event continued to recover from the damage to revenues and profits during the COVID, bouncing back as profit more than doubled to $216 million from $104 million for the nine months to July. Movement in Caribbean Assurance Brokers’ stock price follows profit jumping from just $4.5 million in the June 2022 half year to $18 million this year. Regency Petroleum profit fell from $51 million to $25 million for the half year but hope for improved profits drove the stock with new gas stations being opened or to be opened. General Accident migrated from the Junior Market to the Main Market on the last day of the month, with the increased stock price spurred by profit surging 195 percent to $165 million in the 2023 half year.
Indies Pharma profit declined moderately for the nine months to June but was up 16 percent in the latest quarter, that performance does not warrant a 34 percent cut in the stock price to September but investors seem impatient with the progress of the company growth. Fesco stock price declined sharply for the period even as the net profits for the June quarter were marginally higher than that of the similar 2022 period, with revenues marginally higher. The stock price pulled back from heady levels in 2022 to adjust to the earnings in the last fiscal year of just under 23 cents per share with indications that it may not significantly improve in the current fiscal year to warrant the high premium it had in 2022. Fosrich, on the other hand, had a sharp decline in profits for the second quarter and the half year but it too enjoyed a big premium in the stock price in 2022, investors readjusted their expectations by marking the price down, although both stocks got a two day bounce at the end of September that improved their performance year to date. Lasco Financial had a third less profit in the 2023 fiscal year than the prior year and reported vastly poorer results in the third quarter to June and that seemed to have encouraged more selling of the stock. Revenues and profit bounced in the third quarter for Limners and Bards but are still down year to date compared with last year and that did not help the stock that lost value during the period. Edufocal profit bounced in 2023 and may not necessarily justify the 38 percent fall in the stock price, while iCreate had totally disastrous results in the 2022 fiscal year as well as in the first half of 2023, with the company’s performance continuing to raise questions about its future. Elite and CAC 2000 suffered a reversal in fortune that is reflected in the decline in stock prices of both companies.

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Transjamaican stock doubles in 2023

October 5, 2023 by

Transjamaican Highway stock closed trading on Wednesday with a gain of 105 percent at a record close of $2.87 on Wednesday and traded at a record $2.95, up 111 percent on Thursday morning, to be one of only two stocks on the Main Market of the Jamaica Stock Exchange to gain more than 100 percent for the year to date, the other being Ciboney up 139 percent.

New record high for the JSE Junior Market.

Investors in Transjamaican, the operators of Highway 2000 have much more to cheer about as the company raised the dividend to be paid in October by 118 percent to 18.66 cents up from 8.55 cents last year. The dividend adds another 13 percent to their return for 2023 based on the opening price for the year of $1.40. While the 2023 performance is a big reward for investors in the stock, it has been a long wait for early investors who bought in the IPO at $1.41 in February 2020, valued then at a PE ratio of 25 times, when the market was averaging 16 times. Critics of the value at the time indicated the serious overvaluation but supporters hailed it as reasonably priced. Now the stock is trading at less than 10 times 2023 earnings of 30 cents per share and buyers have been less than ecstatic about it, by slowly driving the share price to current levels over several months.

Transjamaican Highway

The stock’s performance is supported by an outstanding jump in profits for the six months to June over the similar period last year, with earnings of 14 cents per share versus just 3 cents for the same period last year, with the profit ballooning 338 percent for the June quarter to US$6 million and 442 percent to US$11 million for the half year. Revenues and profit rose as a result of the acquisition of its new subsidiary, Jamaican Infrastructure Operators which reduced cost considerably as well and the group benefitted from increased revenues from operating the toll road. The stock’s performance was also helped by the declaration of the substantial increase in dividend.

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