Scotia hikes dividend on profit rise

Jackie Sharp - CEO Scotia Group

Jackie Sharp – CEO Scotia Group

Scotia Group raises dividend with the Board of Directors approving a final dividend of 45 cents per stock unit in respect of this financial year, which is payable on January 18, 2017 to stockholders on record as at December 27, 2016.
The proposed payment brings the total payment for the year to $1.71 and represents a 6 percent increase in dividends year over year and a dividend payout ratio of 47.08 percent of profit. The final payment means that the 2017 payout should be no less than $1.80, with the proposed payment setting the stage for future quarterly payments. Scotia Group released results with earnings per share ending at $3.63 compared to $3.19 for 2015.
At the same time Scotia Investments held dividends at 45 cents per share the same amount they have been paying in recent times although the company report net profit of $1.35 billion for the year ended October compared with $1.02 billion for the prior. The 2016 profits rose by 32 percent or $325 million net income of $537 million for the quarter ended October, up from $288 million the quarter ending October 2015.
Strong gains of $527 million in fee income, foreign exchange trading gains and gains on financial assets were the main contributing areas that gave rise to the increased profit for the year, for Scotia Investments with earnings per share of $3.19.

Stock split consideration for Eppley

eppleyThe directors of Eppley Limited will meet on Thursday, November 10, 2016 to consider the payment of an interim dividend to stockholders and a stock split.
Eppley last traded at $735 on the junior market of the Jamaica Stock Exchange. Since listing in July 2013, the stock has traded infrequently, even after the number of issued ordinary shares, were increased this year, with the issue of additional shares by way of a rights issue. In May the company issued 487,703 new ordinary shares priced at $650 each, bringing the total ordinary shares outstanding to only 1,283,122 units.
Profit for the June 2016 quarter amounted to $29 million $40.5 million for the half year, up from $22.5 million for the six months to June 2015.
The company is primarily in the business of insurance premium and lease financing.

Paramount corrects split error

Hugh GrahamMentors are supposed to advice and guide junior market companies’ directors in the ways of the securities market as well as other business related issues to help steer them in areas they may not be familiar with. Mentorship was wisely assessed to be needed for the smaller companies, many of whom were not being governed to the more rigorous manner that their main market neighbours are.
Directors should aide and guide management in the right direction. Ideally, management and directors should strive to work together to achieve the objectives desired. Chairmen have a major role to play to ensuring things are navigated properly. When the JSE board approved a stock split and management posted the notice that the board approved the split which was to have been effected without shareholders’ approval, the Chairmen must take a big part of the blame for the error. All the details of such an issue should have been sorted before the board meeting, with Chairman being fully and properly informed and thus ensure that it was done properly. Finally, the board should have determined and agreed when the shareholders meeting was to be held to approve the split. PTL All buidTheir failure of the board to do their work properly cannot be placed solely at the feet of the executives.
This brings up the Paramount Trading stock split. The stock exchange rules require that all listed companies must advise the exchange at least 7 days before a meeting of directors is to be held at which a distribution or change in the share capital of the company is to be considered and shortly after the meeting is held advise of the result of the deliberation. Pan Jam’s board, in agreeing to a stock split earlier this year failed to inform the stock exchange in accordance with the rules, was hauled over the coals by the exchange, for failure to comply. Note is also taken that Palace approved a dividend but there was no notice on the JSE website about the meeting at which the proposal was to be considered.
The Board of Directors of Paramount Trading failed to follow the rules of the exchange regarding their decision to recommend the subdivision of stock units which was an item for shareholders to consider at the Company’s Annual General Meeting (AGM) which is due to be held on Saturday, 29 October. IC Insider contacted the company to find out the reason for failing to follow the regulated procedure and was advised that the JSE informed them in writing that they did was in order. Contact with the JSE by IC Insider triggered a response that the matter would be investigated.
On Friday the company posted a release which the error. The release in part states that at the AGM that on the list of resolutions is a proposed sub-division of shares, for consideration by the shareholders.
The proposed resolution is set out in the notice of AGM as follows:“SUB-DIVISION OF SHARE CAPITAL
To sub-divide each ordinary stock unit in the capital of the Company into such number of stock units as may be prescribed by the Board: “THAT each of the issued ordinary stock units in the capital of the Company be sub-divided in accordance with the Articles of Incorporation of the Company, into such number of stock units as may be prescribed by the Board of Directors.”
“In connection with the above resolution, please be advised that the Board of the Company shall hold a meeting on Saturday, 29 October to consider and approve the sub-division pending shareholders’ approval of the said resolution.”

Sagicor Group flat Q2 profit

Sagicor Group HQ - the stock closed at $21.45 on Friday.

Sagicor Group HQ – the stock closed at $21.45 on Friday.

Sagicor Group recorded a 15 percent increase in profit attributable to Stockholders of $4.31 billion for the six-months ending June 2016, over last year, resulting in earnings per stock unit of $1.10 compared to 96 cents. The company was not as fortunate in the second quarter as earnings were flat at $2.4 billion from a jump of 10 percent in revenues to $15.3 billion.
Total Comprehensive Income jumped sharply in the quarter to $5.7 billion from $1.9 billion at June 2015 and for the six months it stood at an impressive $8 billion versus $3 billion in 2015.
Expenses climbed 13 percent to $12.28 billion including administrative cost that rose 16.4 percent to $3.88 billion. Segment results show mixed fortunes, with Individual Lines slipping 9 percent to $800 million, down from $875 million, Employee Benefits jumped sharply by 49 percent to $1.87 billion, while Investment Banking grew by 6 percent, to $850 million. Commercial Banking fell 28 percent or $228 million to $585 million as write down of tax recoverable, took $250 million out of profits, in 2015 the group indicated that results for this segment was boosted by higher than expected recoveries on delinquent loans. Other segment jumped $220 million or 148 percent to $368 million while the company share of Sagicor Real Estate Fund contributed $153 million in the quarter and $329 million for the six months against no earnings in 2015.
Sagicor’s main focus is on the sale of personal insurance related products and banking, its success will be its ability to manage funds it receives and use in investment.
The group reported earnings of $2.51 for 2015 and with the performance this year to June, full year earnings should end up around $2.90, suggesting the stock should rise in the months ahead with the PE ratio at 7 times 2016 earnings versus an average of 9 for the main market. The stock last traded on Friday on the Jamaica Stock Exchange at $21.45.
At the end of June, equity attributable to stockholders climbed to $51.69 billion up from $46.57 billion, while total assets climbed 7.3 percent to $322.4 billion from $300.4 billion at the end of December 2015.
Outlook – “Our Group continued to produce good results in all areas. We are seeing the benefits of our business growth, digital and service-oriented strategies. We expect the second half year to be even better than the first,” Chairman, Danny Williams and CEO, Richard Byles, told shareholders, in the report of directors accompanying the financials.
Sagicor paid an interim dividend of $2.58 billion to stockholders or 66 cents per share, in April this year which is 69 percent higher than the $1.52 billion or 39 cents per share for the similar period in 2015. A second dividend is expected before the end of 2016. An interim dividend of 34 cents per share was paid to shareholders in November 2015.

Cargo Handlers’ share goodies

Cargo Handlers to split stock 10 for 1.

Cargo Handlers to split stock 10 for 1.

Cargo Handlers‘ shareholders will see a 10 to 1 stock split when they vote on the recommend stock split by directors. Stockholders will also be asked to authorize an increase in the capital of the company to 466,200,000 shares from the existing amount of 40 million units, to accommodate the split. No date has been set for the meeting to approve the split.

The shares now issued amounts to 37,465,830 units but the stock trades infrequently as very few are in the hands of the general public. The stock split is expected to enhance liquidity of the stock.
The stock last traded at $56 on the junior market of the Jamaica Stock Exchange having shot up from $46 after the announcement was made that the directors were meeting to recommend a split. There are currently ids to buy the stock between $60 and $64.01 for 10,877 units, the last offer was 919 units on at $66, at the close on Monday.
The directors declared an interim dividend of $1.35 per share to be paid on September 13, with the ex-dividend date set for August 17.
The company enjoyed a buoyant June quarter, with revenues rising 55 percent from $56 million to $87 million and for the nine months by 36 percent to $245 million from $182 million. Profit before tax rose to $53 million from $29 million in 2015 and after taxation, profit ended at $46 million from $29 million. For the nine months, profit rose from $108 million to $143 million before tax, with the 2016 results ending at $125 million after tax, there were no taxes in 2015.
Management attributes the strong growth in third quarter revenues and profit, to increased activity in the Montego Bay region and increased port activity, flowing from the conversion of the Jamaica Public Service power plant to LNG gas.
Earnings per share for the quarter ended at $1.23 and $3.32 for the nine months. Full year’s earnings should be just under $5 per share but scarcity of the stock is driving the valuation up.

$74m pay out by JSE

JSE signThe Jamaica Stock Exchange will pay $74 million in dividend on May 6, this year. The dividend translates to 53 cents per share. In December last year, the company made a payment of $65.8 million or 47 cents per share following a payment of 53 cents per share in July.
The stock will start trading ex-dividend on April 28, at which date new investors in the stock will not be entitled to the above dividend.
With the price of the stock in the $20 range in 2016, the yield is 2.5% and IC Insider projects that it is with profits for the year set to exceed that of 2015 dividends will be increased thus raising the yield for the year higher.
The company reported earnings for 2015 of $1.25 per share or $175 million, up from only $3 million in 2014. The company’s stock last traded on Wednesday on the Jamaica Stock Exchange at $20.55.
In December 2014, the stock traded at $1.50. The three dividends provide investors who purchased the stock in December 2014 if they held them, with a full pay back of the amount invested, not factoring in taxes.

JSE to consider a dividend

JSE buld with blue skyThe Jamaica Stock Exchange (JSE) has advised that the Board of Directors will meet on April 19, 2016 to consider the payment of an interim dividend.
In December last year, the company made a second dividend payment of 47 cents per share on December 30, to shareholders on record as at December 23 following a payment in July of 53 cents per share which brought the total pay-out to $1 per share for a total $140 million. Last year’s dividends provided a staggering 63.7 percent yield based on the 2014 closing price of $1.57. With the price of the stock in the $20 range in 2016, the yield is bound to drop dramatically to around 10 percent or less. The stock last traded on Wednesday on the Jamaica Stock Exchange at $19.55.
The company reported earnings for 2015 of $1.25 per share or $175 million, up from only $3 million in 2014. JSE had the best quarter in March with revenues of $259 million and profit of $87 million after tax. The 2016 first quarter seems set to better that of the 2015 first quarter with a big $110 million income from trading a block of Desnoes & Geddes shares almost equal to the estimated $120 million hauled in from the block of Scotia Group shares that was transferred from the Canadian parent to a Caribbean based one.

Marlene Street Forrest - General Manager of the JSE

Marlene Street Forrest – General Manager of the JSE

The December 2015 quarter had the next best quarter with revenues of $196 million but with profit before tax of $40 million much lower than in the September quarter as added cost eroded the profits that should flow from the higher revenues.
What should help boost the first quarter results is added business undertaken by the exchange particularly, the registrar services, for handling of the repo business and increased stock market activity in 2016 over the first quarter of 2015. Last year, for the first quarter, regular trading was $4.9 billion while for 2016 its $6.44 billion, for a 31 percent increase. The JSE also engineered increases in fees charged for some of it services.

Carreras dividend yielded 20% in 2015

Carreras nme Carreras will be paying an interim dividend of $1.80 per share to shareholders on March 17 and brings the total dividend in the last twelve months to $8.94 for a yield of 20.2 percent based on the stock price of $44.10 at the beginning of March 2015.
In 2015, the company paid an ordinary dividend of $1.40 per share in December, a special capital cash distribution of $1.94 per on December 17, one dollar and twenty cents ($1.20) per share in September 3, two dollars ($2.00) per share unit in June a special capital cash distribution of sixty cents ($0.60) per share in September. March 12, last year an interim dividend of one dollar and sixty ($1.60) per share was paid.
The stock is now trading at $66.50 on the Jamaica Stock Exchange. Dividends to come are not likely to be as high as in 2015. The special dividends that were paid, should be at an end, leaving only ordinary dividends to be paid, as such the yield is likely to fall to just over 10 percent based on the current price.

Dividend triples for H&L owners

H&LShareholders of Hardware Lumber (HL) will be paid an interim dividend for the year 2015 of One Dollar and Nine cents per stock unit on January 29, this year, to shareholders on record as at the close of business on January 15.
The ex-dividend date for the payment is the January 13. The company paid 32 cents per share in dividends in 2014 and 30 cents in 2013.
The payment comes against the background of lower profits in the year to September and acquisition of the majority shares by a group of investors.
Total revenue for the nine months to September 2015 was $5.37 billion or 2.3 percent more than the comparative period in 2014. Profit after tax for the nine-month to September 2015 was $64 million, 43 percent less than the $113 million for the same period in 2014 and earnings per share of 79 cents, compared to $1.40 for the similar period in 2014.
On Thursday December 30, Grace Kennedy’s 58.15 percent interest amounting to 47,013,417 shares in Hardware & Lumber, were traded over the Jamaica Stock Exchange at $18.50 each.
The shares were bought by Argyle Industries Inc. (“Argyle”) a St. Lucian Company special purpose vehicle incorporated for the purpose of acquiring and holding the Investor’s equity interests in Hardware & Lumber.

A rich 2015 for JSE shareholders

JSe online logoShareholders in Jamaica Stock Exchange (JSE) are having a wonderful 2015. The stock last traded at $1.57 in December 2014 and has since shot to $16 for a gain of 919 percent but if that was not enough the company has declared a dividend of 47 cents per share payable on December 30, to shareholders on record as at December 23. As great as the gains for 2015 has been so far for the JSE stock price is still lags some of the best gains ever recorded for the market with highest being West Indies Glass with a n astounding 3,438 percent in 1985 followed by Jamaica Flour Mills with 2,054 percent in 1984.
JSE highest gns -12-15The stock will trade ex-dividend on December 21. In July this year, the JSE paid 53 cents per share which brings the total payout to $140 million and to $1 per share making for a dividend yield to a staggering 63.7 percent based on the 2014 closing price.
The JSE reported earnings of $139 million in nine months to September this year, from $8 million in 2014 and seems set to increase profits in 2016 that should push to stock up even further with strong prospects of another year of big dividend payment.