General Business News

Imports down to February

June 5, 2014 by IC Insider.com

Imports are down for the first two months of 2014 and was valued at US$884 million compared to US$1,117.4 million, a decrease of 20.9 per cent or US$233.3 million when compared to the same period in 2013” the Statistical Institute of Jamaica reported recently.

The figures are in line with imports in the first month of the year as imports fell sharply by 20.8 percent or US$115.7 million to US$442 million compared to US$558 million in January last year due mainly to reduced imports of fuel and chemicals but exports for January were also down sharply, declining by 25.3 percent or US$39 million to US$115 million, resulting in shrinking of the trade deficit by US$77 million or 19 percent to US$327.3 million when compared to US$404.2 million in the corresponding 2013 period.

Filed Under: Economy, General Business News

Scotia to pay dividend in June

June 3, 2014 by IC Insider.com

Scotia Group Jamaica will be paying an interim dividend of 40 cents per stock unit and Scotia Investments will make an interim payment of 45 cents per shares to stockholders on record as at the close of business on June 20, 2014 on July 11. The X dividend date is June 18, 2014. The amounts being paid are consistent with payments made over the last twelve months.

Honey Bun will be paying an interim dividend of 5 cents per share on June 26, 2014 to shareholders on record as at June 16, 2014, the X Dividend date is June 12. Honey Bun last paid an interim dividend of nine cents per share on March 27, last year.

Filed Under: Company News, Dividends, General Business News

JPS profit climbs

May 30, 2014 by IC Insider.com

Profit at the Jamaica Public Service Company jumped in the March 2014 quarter even as revenues fell. Profit came out at US$7 million from revenues of US$262.6 million versus only US$877,000 in the 2013 quarter from revenues of US$271.7 million in 2013. Gross profit amounted to US$69.8 million down marginally from US$70.6 million in 2013.
Expenses| Operating expenses fell 8 by percent to reach US$45.7 million and finance cost declined from $17.65 million down to $14.65 million. JPS provided $3.56 million for corporation tax on the profit of $10.7 million.
Shareholders equity stood at US$336 million at the end of March and loans at $366 million.

Filed Under: Company News, Company Results, General Business News, JSE Main Market

Carreras to pay $1.75

May 30, 2014 by IC Insider.com

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Carreras declared an interim dividend of $1.75 per stock unit to be paid on June 26 to stockholders on June 12, 2014. The X dividend date is June 10. The coming dividend brings the total payment for the 12 months to June this year to $6.55, providing a dividend yield from July last year to 12.4 percent. Since July last 2013, the value of the stock declined by 17 percent over the same period.

The company paid an interim dividend of $1.62 per share on March 13, 2014. Interim dividends of a dollar per share each were paid in August and November last year. A special capital cash distribution of $1.18 was also paid on January 30, this year. In June 20, 2013, an interim dividend of $1.30 per share and a special dividend of 94 cents per share were paid.

Jamaica Money Market Brokers (JMMB) declared a dividend of 17 cents per ordinary share payable to shareholders on record as at June 12 to be paid on June 26, 2014. The X dividend date is June 10. Last year a dividend of 10 per share was paid on March 28 and 16 cents per share was paid on December 18.

Mayberry Investments approved an ordinary dividend payment of 12 cents per share payable on June 18, 2014 to shareholders on record as at June 10, 2014. The X dividend date is June 6. The company paid a dividend of 12 cents per share on December 27, 2013.

Dolphin Cove declared an interim dividend of 15 cents per share, payable on Monday June 30, 2014 to shareholders on record at Thursday June 12, 2014 with the X dividend date being June 10. An interim dividend of $0.15 per share was last paid on April 9, on December 4, last year, 10 cents per share was paid, 10 cents per share on September 16, 10 cents per share on June 6 and 10 in March 28 last year.

Proven Investment will be paying a dividend of US$0.0020 per share to all ordinary shareholders on record on June 10, 2014 with the payment date of June 24, 2014. The X dividend date is June 6th. A dividend payment of $J0.10 was declared for preference shareholders with a record date of June 9 and payment date of June 23, 2014. X dividend date June 5th, 2014.

Honey Bun to consider Honey Bun directors will be meeting on June 2, 2014 to discuss dividend payment.

Filed Under: Company News, Dividends, General Business News, JSE Main Market

CI 4G LTE network complete

May 25, 2014 by IC Insider.com

Cable & Wireless Communications’ business in the Cayman Islands, which trades as Cable & Wireless Cayman, has completed the roll-out of its new 4G LTE network. This has resulted in higher capacity, and enhanced mobile data services.
The increased capacity has enabled new and better services to the Cayman customers such as video streaming, interactive TV and advanced games. Cable & Wireless Cayman customers in the Cayman Islands can now enjoy download speeds over five times faster than were available previously. This will enable Cable & Wireless Cayman customers to download a music track in three seconds or a film in 40 seconds.
A 4G LTE mobile data service will also complement users of the latest smartphones like the iPhone 5, which Cable & Wireless Cayman has the exclusive rights to provide in the Caribbean.
Since the upgrade took place, average data traffic on Cable & Wireless Cayman’s mobile network has increased by 68 times. Over the last 18 months there has been a significant increase in video, streamed TV and social networking usage.
The solution included the deployment of a new Evolved Packet Core (EPC) and new HSS (Home Subscriber Server), as well as new radio base stations for 4G/LTE.
Cable & Wireless Antigua & Barbuda, plans to launch fourth generation Long term Evolution (4G LTE) mobile data services having been awarded radio spectrum.
The new 4G LTE services will improve the mobile data services available to their customers. The speeds at which customers will be able to download online services and applications will increase by more than 50 times. Customers will be able to surf the web and stream music and video wherever they are, on any compatible mobile device.

Filed Under: Company News, General Business News

Sagicor Group shares purchase

May 23, 2014 by IC Insider.com

Sagicor Group advised the Jamaica Stock Exchange that an Executive purchased 1,061,291 shares under the Executive Long Term Incentive Scheme on May 22, 2014
A senior manager purchased 254,705 National Commercial Bank shares on May 9, 2014 and a director purchased 10,000 shares on April 25, 2014, the bank advised the Jamaica Stock Exchange while the exchange was also advised that a director purchased 574,651 Jamaica Broilers Group shares on March 28, 2014.

Filed Under: Company News, General Business News, Insider Trades

Proven – growth by acquisition

April 30, 2014 by IC Insider.com

Proven Investments‘ growth by acquisition took a leap forward with the announcement that they came to an agreement with conglomerate Grace Kennedy to acquire all the shares of First Global Financial Services Limited (FGFS) from First Global Holdings Limited. The agreement was signed on April 24, 2014. This acquisition is subject to regulatory approval. Grace Kennedy stated in a release to the Jamaica Stock Exchange that the transaction is valued at $3.05 billion but excludes the seat on the exchange that the Grace group will keep.

First Global Financial Services Limited, FGFS was established in April 2004, as part of the Grace Kennedy Financial Services Division re-branding and consolidation exercise, when George & Branday Securities Ltd assumed the First Global brand name of First Global Financial Services Limited. Later, FGFS acquired the operations of FGB Securities Limited, First Global Stockbrokers Limited, Grace Kennedy Properties Limited, First Global Insurance Limited, and Grace Pension Management Limited.

The acquisition will swell the assets of Proven which stood at US$146.4 million at the end of 2013. It is expected that the two entities will be merged resulting in a cut in operating cost. FGS is said to have $22 billion in assets plus assets managed for third parties off the balance sheet amounting to $60 billion. Not all of the assets may move over as some clients could opt to shift to other entities within the financial industry. If history is anything to go by, the bulk of the assets should continue with the new owners once the deal is concluded.

Grace plans to use the proceeds to expand First Global Bank locally and the group’s financial services regionally.

Related post | FX gains & securities boost Proven

Filed Under: Company News, General Business News Tagged With: First Global, Grace Kennedy, Jamaican Stock, JSE Company, Proven

Access CEO moved but…

April 15, 2014 by IC Insider.com

In the continuing struggle over control of Access Financial Services, the Board of Directors informed the Jamaica Stock Exchange that by resolution passed on April 14, 2014, the Board removed with immediate effect from Mr. Marcus James, all powers of management of the Company’s affairs previously granted to him by the directors under the articles of the Company. Those powers will now vest in, and be exercised by, Mr Alexander Johnson, who was appointed by resolution to act as Chief Executive Officer, along with Mr. James, until further notice.

The resolutions were passed pursuant to an order granted by Justice Sykes on April 11, 2014, which varied a previous order of the Court. The report concluded that the dispute with Marcus James continues.

IC Insider understands that the dispute goes well beyond the issue of capital expenditure, which has been bandied about in the media and involves the critical matter of trust between the two major partners in the venture.

IC Insider has been informed that the issue of the quantity of shareholdings came up about two years ago when the Chairman, Brian Goldson, was sold shares by Mayberry out of their 39 percent holdings, which is covered by a shareholders agreement and stated in the company’s prospectus at the time they offered shares to the public in 2010. Subsequently, Mayberry preceded to acquire additional shares in the market, which became a matter of concern for Marcus James as the Chairman’s and Mayberry’s shares could out vote him.

The dispute at the time led to Mayberry asking James to buy them out and find a buyer for the block of shares. We have been reliably informed that Scotia Bank was approached but they were only interested in full ownership. Hence, that option fell through and no one else came up with the funds. Additionally, James was very concerned that he was being pressured to make big dividend payments rather than invest the surplus back in the business.

Apparently, the building at Half Way Tree Road was the breaking issue which led to the temporary removal of James as the CEO, who is accused by the Board of syphoning funds for a capital investment without Board approval for the benefit of himself and family.

Related post | Access & its CEO in Court

Filed Under: Company News, General Business News, Initial Public Offers, Stock Market

Access & its CEO in Court

April 11, 2014 by IC Insider.com

The Jamaica Stock Exchange has been advised by the Company Secretary of Access Financial Services Limited in a letter dated 9th April, 2014, of an ongoing dispute with its Chief Executive Officer, Marcus James.

In the course of the dispute, litigation has been initiated by James against the Company and it is reported that pending a full hearing of an application for injunction, a Judge of the Supreme Court granted an injunction to 23rd April 2014 to restrain the Company from holding disciplinary proceedings that could result in the removal of James as Chief Executive Officer.

From the report made to the Jamaica Stock Exchange, “the dispute involves serious allegations and counter-allegations having to do with the governance of the Company and its assets.”

James is the initiator in forming the company and holds one of the largest blocks of the issued shares.

Access Financial Services Limited is listed on the Junior Market of the JSE.

Related posts | Access moved to Market Watch | Access growth continues

Filed Under: Company News, General Business News Tagged With: Jamaican Stock, JSE Company

Margaritaville IPO oversubscribed

April 1, 2014 by IC Insider.com

Margaritaville (Turks) Initial Public Offer (IPO) closed on Friday, March 28 after just exceeding the amount offered for sale.

The IPO opened on Monday, March 3, 2014 with an offer of 21,156,555 shares, at US$0.10 per share. The offer closed with a total of 214 applications for 21,178,100 units and the total amount raised was US$2,117,810. The amount fell short of an approximate US3 million the company was hoping to get which would have meant the sale of additional existing shares.

Chorvelle Johnson, President & CEO of PROVEN Wealth, brokers for the issue, stated that “Margaritaville (Turks) Ltd will be the first major listing on the Jamaica Stock Exchange (JSE) this year and will also be the second United States Dollar listing following PROVEN Investments.” However, varies from what was stated in the prospectus that it would be listed on the Main Market of the JSE.

Margaritaville (Turks) is a part of the Margaritaville Caribbean Group of Companies and a wholly owned subsidiary of Margaritaville Caribbean prior to the Invitation. The Group operates the Margaritaville chain of restaurants in various Caribbean destinations, inclusive of the flagship restaurant launched on the “Hip Strip” in the centre of Montego Bay, Jamaica.

In 2006, the company began operations in Turks and Caicos at the Grand Turk Cruise Centre which is a minutes walk from the cruise ship pier. On the property, there is a mixture of thatched roof restaurants and a swim-up bar that serves Jimmy Buffet Margaritaville’s signature flavours of Margaritas. The Company’s food service operation is complemented by the sale of beverages inclusive of the Margaritaville USA’s proprietary beer, Landshark, and branded apparel, bar ware, and other items. The establishment is well supported and it is expected that the number of visitors will increase from 750,000 recorded for the calendar year 2013 to 1 million persons in calendar year 2014.

Margaritaville (Turks) Ltd is in the process of making an application to be listed on the Jamaica Stock Exchange.

Related post | Margaritaville, down the road with risk