Scotia Group to pay $7.6b in dividends
The directors state that the special dividend is to payout years of accumulated surplus that has built up over the years. The payments comes against the drop ground of net profit for the April quarter coming in a $3.295 billion versus $3.3 billion in 2018 and $5.6 billion compared to $6.76 billion year to date in 2018 with the latter being boosted by one off gain from sale of a subsidiary of $753 million.
The group reports an eleven percent growth in its loan portfolio to reach $189 billion from $171 billion in April 2018, but just 3.4 percent since October last year.
The decision to make the special payment is not surprising with the sharp cut in cash reserves requirement at the country’s central bank and the low levels of interest rates that currently prevail in the economy.
Big jump in Witco profit
After providing $45 million for corporate taxes profit rose 38 percent to $100 million.
The impressive results arose from a sharp 21 percent climb in revenues to $227 million and a decline in cost from 36 million in 2018 to $32.4 million in the latest quarter. Also contributing to the improved results, was an rise in gross profit margin to 77.8 percent from 75.3 per cent in 2018 that resulted in gross profit rising 25 percent to $177 million versus $141.5 million in 2018.
The Board approved the payment of a first interim dividend of 83 cents per share payable on June 11 to shareholders on record at the close of business on May 21. Earnings per share climbed to $1.19 from 86 cents in 2018. For the full year, earnings should hit $6.40. The stock that is listed on the Trinidad and Tobago Stock Exchange last traded at TT$110 at a PE of 17.
Twice a year dividend for Wisynco
Wisynco declared a dividend of 7 cents per share payable on February 26, 2019 to shareholders on record at February 12, 2019.
The company in its report to shareholders accompanying the half results, states, that “going forward dividends will be declared semi-annually, with the first interim dividend being in January and the final dividend in July of each year.”
Wisynco reported a 36 percent rise in net profit for the December quarter to $776 million and 30 percent for the half year to $1.54 billion.
JSE – directors cannot override AGM decision
IC insider.com was informed that the Jamaica Stock Exchange stopped the payment. In discussion with the JSE they indicated that the company did not comply with the rules of the exchange to inform them of the dividend. Accordingly, the change in dividend payment was to allow for the public to have notice of the ex-dividend date.
That of course is only partially true, while the company did not advise the exchange when the directors were to meet to approve the dividend and what was the outcome of the meeting. The exchange had adequate notice of the payment from October 31. The exchange JSE staff did nothing about the information that they got and approved for posting on their website.
The company’s directors’ report clearly states that the dividend had an xd dividend date of January 4 with the payment to be made on January 18. The annual report was posted on the JSE website from October. The directors, report along with the audited report were put to the meeting for acceptance which was done.
Shareholders after approving the directors’ report, approved the resolution for the payment of the dividend, effectively agreeing to ex dividend and payment dates as set out in the directors report.
In the wisdom of the Jamaica Stock Exchange, they ignored the supremacy of the AGM and forced the company to submit information to change all the dates relating to the dividend. They failed to understand that the directors have no powers to change what the shareholders approved, and if a change is to be made, then the directors would need to call a general meeting to get shareholders to make the change. The correct remedy would have been some reprimand not a call for a non-legal action.
The requirements of the JSE is that any meeting at which a dividend is to be consider should be communicated to the JSE no later than 7 days before the date of the meeting and within 48 days of the meeting the decision taken. This was not done by Palace, but the JSE who had notice of the declaration from the end of October, did nothing about it for more than two months.
On 17 January, a posting on the JSE website showed that the record date was changed to January 31. The posting stated the “Palace Amusement (PAL) has advised that following decision made at their Annual General Meeting in December 2018, to pay a dividend of $2 per stock, the payment will be made on February 8, 2019, to the shareholders on record as at January 31, 2019, The ex-dividend date is January 30, 2019.”
The added problem is that shares were traded in January after the xd date of January 4. The seller would have expected to collect the dividend that was approved. It also means that cheques already drawn, may have to be redone, to record the new record date.
The JSE has clearly, made a huge error in this matter and should immediately correct it, to prevent a messy situation from getting worse. You cannot correct a wrong by another wrong.
Scotia hikes dividend
Scotia Group delivered below par performance in that final quarter of the 2018 fiscal year, with profit falling to just $1.6 billion from $3.36 billion in 2017.
The quarterly results, however, is not an indication for what can be expected for the 2019 fiscal year as one time fall in revenues and in some cases, expenses are unlikely to be reflected for the full year to come. In keeping with expected pick up in profit the banking group hiked their dividend from the usual 48 cents per share to 51 cents in their latest announcement. Based on Scotia’s long held policy, when dividends are raised it is usually an indication that future dividend payments will continue at the elevated level for the ensuing period. Investors in the stock can therefore look forward to at least $2.04 cents for all of 2019. That will be a return on the latest stock price of $54.01 of 3.8 percent. Dividends paid in 2018 amounted to $1.92 per share. The total amount of dividends to be paid in January will be $1.59 billion which is alomost all the profit reported for teh quarter. The dividend will be paid on January 18, 2019, with the ex-dividend date set for December 24.
Freeport to distribute 40c per share
The former Jamaica Stock Exchange listing, Montego Freeport made $44 million in profit for the twelve months to March this year which is up strongly from nearly $11 million reported for 2017.
operating revenue was a mere $1.7 million while other income amounted to $101 million versus $36 million in 2017. The financial data extract sent to shareholders does not break out the details of other income, but 2017, the category comprised interest income from investments and receivables for land sale and foreign exchange gains.
The statement of financial position shows shareholders equity at $710 million or $1.26 per share. Shareholders at the general meeting slated for November 30 will vote on a resolution to pay a capital distribution of 40 cents per share in December.
10 to 1 stock split for Blue Power
Shareholders of Junior Market listed Blue Power, are set to see much more liquidity in the shares as the board is recommending a 10 to 1 stock split to be voted on at the upcoming general meeting in August.
Approval of shareholders will be sought, for the board’s recommendation to be put to the Annual General Meeting to be held on August 14, to increase the authorised share capital of the company from 90 million units to 900 million shares of no par value and to split each existing share of the company into 10 shares of no par value, thus increasing the issued share capital to 564,990,000 shares.
Blue Power Group will pay a dividend of 19 cents per share on July 30, to shareholders on record at July 16. The stock will start trading ex-dividend on July 13.
Mayberry restructuring
Dogged by a share price that is bogged down mostly below $5, with a net asset value of $6.54, Mayberry’s directors are recommending distributing a portion of Mayberry West Indies Limited (MWIL), a wholly-owned subsidiary in the form of dividend to Mayberry Investments‘ shareholders.
MWIL is to list on the Jamaica Stock Exchange before the end of the first quarter of 2018 as a result of the move.
Arising from a Board meeting of the Company, on December 29, 2017, a dividend in specie equal to 10% of the Net Book value of its MWIL was declared. This dividend will be effected by the Company transferring, pro rata among its stockholders, shares in MWIL held by the Company and constituting 10% of MWIL’s issued share capital. The record date will be February 16, and shall be effected by transfer of the relevant MWIL shares on February 28 to stockholders. The Ex-dividend date will be February 15.
Based on MWIL’s book value as at November 30, 2017, the dividend in specie is equivalent to approximately $688 million, the Mayberry release said. Mayberry West Indies Limited name is to be changed to “Mayberry Jamaican Equities Limited”.
The Jamaica Stock Exchange requires a minimum of 20 percent of a listed company’s shares to be issued to the public, accordingly, it appears that the plans will be to raise around $700-800 million from the general market prior to listing.
NCB pre-announces dividend dates
NCB Financial Group has announced the dates when their board will consider dividend payments for 2018, in a break from the historical practice of making an announcement a few days before the board meets to consider the quarterly payment.
The practice is in keeping with what obtains in Trinidad with several listed companies pre-announcing dates for dividends, publication of quarterly reports and annual general meetings. The move enhances transparency in the capital market where all concerned are aware of important announcements. NCBFG advises that the board of directors intends to consider the payment of dividends to stockholders on the following dates this year, January 25, April 26, July 26 and November 8. The dates usually coincide with the release of the quarterly reports.