Investors grab Sagicor rights

August 24, 2015 by

Hilton Rose Hall Sagicor X Fund recent acquisition

Hilton Rose Hall Sagicor X Fund recent acquisition

Investors in Sagicor Real Estate Fund have gobbled up more than the 598,134,700 provisionally allotted shares in the Rights Issue, the company announced that as at August 24. Pursuant to the terms of the Rights Issue the Directors have decided to release a further 149,533,675 shares in the Un-allocated Pool.
These shares (“Up-sizable Shares”) are available to shareholders as additional shares over and above their provisional allotment.
Shareholders may apply for Up-sizable Shares at the rights issue price of J$6.95 per share in one of 2 ways: (a) by completing an Application for additional shares; or (b) by completing Box 5 in their Provisional Allotment Letter (in the case of shareholders who have not yet returned their Provisional Allotment Letter).
If the aggregate number of shares applied for from the Un-allocated Pool shall exceed the number of shares available in the Pool, then all applications will be scaled down pro rata.
The Rights Issue will close at 4:30 p.m. on September 2, 2015 – unless extended by the Directors.
The funds received from the Rights Issue will be invested as equity in a new subsidiary X Fund Properties LLC established in the USA. X Fund Properties LLC will purchase the DoubleTree Hilton at the Entrance to Universal in Orlando, Florida.
The DoubleTree by Hilton at the Entrance to Universal is 742 guest rooms (inclusive of 17 suites) hotel with over 62,800 square feet of meeting and convention space. It is located in Orlando at the entrance to the Universal Theme Park. The purchase price for the Hotel is US$75,000.000. The balance of the purchase price is expected to be financed by a US institutional lender.

Filed Under: Company News, Initial Public Offers, Real Estate, Stock Market Tagged With: ,

Profit grows at Jamaican Teas

August 23, 2015 by

Jamaican Teas DoorJamaican Teas reported profit of $27 million in the June quarter, 35 percent ahead of the March quarter and an 8 percent increase from the similar period in 2014. Nine months’ profit to June was $70 million, an increase of 13 percent over the similar period in the prior year.
Earnings per share came in at 16 cents for the quarter and 42 cents for the nine months should end around 80 cents for the full year if the houses with signed agreements are handed over and would put the PE ratio at 4 times earnings, net asset value is $4.36 per share for a discount to the last traded price of $3.10. Investors should not lose sight of the unrealized gains on investments which stood at $12 million.
The group is enjoying strong export sales since the commencement of its current financial year with an increase of 48 percent from $194 million to $287 million for the nine months with the latest quarter, moving from $76 million to $103 million. This contributed to the overall increase in sales which moved from $300 million to $324 million, an increase of 8 percent over prior year quarter and $936 million for the period to June compared to $834 million in the prior year.
The export performance comes mainly from changes in the distribution channel in the New York area which started in December 2014 and normalization of sales in the Florida area, following a shift from two distributors to one in 2014. Local sales for the manufacturing segment that are up 2.5 percent for the nine months, suffered an 8 percent fall in the June quarter.
Delivery of the vast majority of the 29 houses completed in the group’s real estate development, is expected to start in September, with sales revenue and profit to be booked in the quarter.
orchid propAccording to Jamaican Teas in their report to shareholders, “the month of August commenced with a significant backlog of export orders resulting expected increase export sales for the September quarter over 2014. Our retails sales have also shown a slight upturn ahead of last year and local sales have improved with the first month’s sales being ahead of the prior year”.
Taxation| Jamaican Teas has now marked its fifth year of being listed on the Junior Market of the Jamaica Stock Exchange, accordingly, effective with the September quarter, the Company will be subjected to taxation at 50% of the standard corporate rate, resulting in a tax charge of 12.5 percent.
At June, shareholders equity stood at $723 million and borrowings at $408 million. With the completed sale of the houses borrowings should fall to $200 million.

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

Consolidated Bakeries profit falters

August 23, 2015 by

Purity bunProfit in the June quarter dipped to $881,000 compared with $4.3 million in 2014 for Consolidated Bakeries. For the six months profit was up to $14.8 million from $8.9 million as revenues climbed just 2 percent to $398 million. For the quarter revenues fell 11 percent to $171 million as there was a shift in sales relating to Easter occurring in first quarter in 2015 versus the second quarter in 2014.
“Furthermore in our efforts to streamline the company we initiated product rationalization this quarter, thus reducing non profitable items thereby contributing to gross profit increases. This initiative slowed sales growth, which we intend to grow in the coming months,” management stated in a report to shareholders accompanying the interim Financials.
“During the second quarter gross profit increased to $68 million compared to $61 million for the same period in 2014. It should also be noted that increased expenses impacted profit from operations. The majority of these expenses can be attributed to our increased marketing activities. We deliberately planned these activities to aggressively reposition our brands against other major players in the market. Our merchandising and promotional purity logoteams were expanded to support this new thrust. We believe these expenses are worthwhile for the long-term growth of the business”, the management’s report went on to state.
The improvement in gross profit in spite of the decline in sales is a big positive going forward as it will help to boost the bottom-line at a faster pace than before, if sales increase. Administrative cost rose 18 percent, well ahead of the growth in gross profit of 12 percent, to $41.5 million in the quarter and for the half year by 11 percent to $$79.8 million. Selling and distribution expenses rose 21 percent for the quarter to $26.4 million and for the six months grew 24 percent to $50 million.
Earnings per share came in at 7 cents for the half year but only 0.04 cents in the quarter, the full year results seems set to be around 10 cents.
The company added $20 million to fixed assets, had borrowings of $57 million and cash and investments of $122 million.

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

D&G profit fell in Q4

August 23, 2015 by

Red Stripe tinProfit fell to $815 million for Desnoes & Geddes, the brewers of the famous Red Stripe beer, in the final quarter of the fiscal year to June, versus $1 billion in 2014. Earnings per share came in at 83 cents with $1.12 in 2014. The latter includes gain on sale of investments in Eastern Caribbean breweries, equal to 35 cents per share. IC Insider is forecasting $1.05 per share earnings, for the year to June 2016.
Revenues came in at $4.4 billion for the quarter versus $3.8 billion in 2014, for the full year $16 billion versus $14.3 billion. Sales growth was helped by a combination of increased volume, product mix and price increase, the company stated. Royalties earned amounted to $533 million in the year and $525 million in 2014.
General, selling and administrative expenses were virtually static for the year at $1.26 billion compared to $1.22 billion but marketing cost rose 37 percent to $1.37 billion against an increase of 15.7 percent to $5.46 billion in gross profit.
For 2015, the company paid a dividend of 13 cents in March while a dividend 27 cents was paid in December last year, providing a yield of 12 percent based on the stock price of $4.10 on August 21 last year. Based on the increased profit and past dividend payments, investors can expect to see an increase for the next dividend payment.
The company’s stock last traded at $7 on Friday on the Jamaica Stock Exchange giving it a PE ratio of 8.4 and a 100 percent premium to net asset value.
The stock valuation may be on the high side just now compared with others in the market, there are a few things investors should focus on. These include the likelihood of increased sales that should occur in the period leading up to the next general elections, with the high dividend yield and falling interest rates the stock will become more attractive as an income generator in the not too distant future.

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

RJR Gleaner pre-emptive move

August 21, 2015 by

TVJ one of RJR's subsidaries

TVJ one of RJR’s subsidaries

The Gleaner Company and RJR Group hinted that their planned merger of the media operations was spawned in part by the introduction of new media entities by the two telecom providers and heavy advertisers, Digicel and LIME.
The statement avoided naming entities but there are only two telecom companies in the island. Digicel started online media start-up LOOP, acquired cable company TELSTAR and regional cable channel SportsMax within the year. While LIME (C&W) regionally acquired Colombus Communications which trades as FLOW locally. Additionally the IC Insider understands from impeccable sources that talks broke down between LIME and an online media entity set for acquisition.
These moves however came within the context of what the media entities described as an already “challenging local climate”, according to an acquisition statement on a dedicated page on the Gleaner’s website.
“Further, recent moves by the large foreign owned telecom players have introduced a new dynamic where they themselves are increasingly offering media services, competing for local advertising dollars with the traditional players. Our two entities have sought to counter these developments by consolidating to shore up our financial bases in preparation for the heightened competition,” according to the statement on the dedicated merger question and answer website.
The developments in media and telecommunications so far this year could put many Jamaican media companies into the red, facing massive cut back in resources and even closure. This transaction is therefore necessary for financial sustainability of the two businesses. Jamaica needs a strong locally-owned media entity to maintain and expand our offerings globally, added the statement.

Filed Under: Company News, General Business News Tagged With: , , ,

KLE and C2W Music burnt up cash

August 19, 2015 by

KLEJunior market entertainment companies, KLE Group and C2W Music continue to burn cash with relatively large losses in the in the quarter and six months to June with one having shredded shareholders capital and the other on the edge of doing so.
C2W Music reported revenues of just US$4,976 in the June quarter and US$6,028 for the half year but cost rose in the quarter over that of 2014 with US$16,000 versus $12,193 and for the half year US$28,866 versus US$93,605. Finance cost ended at US$1,381 for the quarter and US$2,762 for the year to June. The company reported a loss of US$12,297 and for the six months and US$25,649 in 2014.
The cash burn for the company has virtually wiped out the share capital with only US$17,402 left out of US$1,286,619 raised when it went public, forcing them to seek loan funding which amounted to US$80,950 at June. The results are well off track from what investors were promised when the company had its IPO.
C2WMusicOver at KLE Group the focus is said to be on cost containment and the launching of franchising of the Tracks and Records concept as well as some new income stream.
For the quarter to June revenues amounts to $54 million with a loss of$12.85 million versus $8.3 million in 2014. For the six months, revenues was $103 million compared with $128 million with losses of $34.6 million and $20.9 million in 2014.
The company has burn through all the equity is raised and more and ended up with negative equity of $10.56 million at June and borrowings of $99 million. While borrowings have grown and payables have fallen from $116 million in June 2014 to $84 million, the composition of the amount tells the story of a company with serious challenges, with GCT due of $7.34 million versus just $146,000 in 2014 and Statutory payables of $10.7 million up from $2.3 million in June 2014 and credit card payables of $9.8 million, at the end of last year June the amount was at $7.2 million.
The lack of capital is driving the nail in the coffins of both companies as revenues are just not there at least currently, to allow for survival.

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

Sagicor Financial raises US$320m

August 18, 2015 by

Sagicor Financial's Jamaican subsidiary Sagicor Group HQ. earnings

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: , ,

Proven Investments profit jumps

August 18, 2015 by

Proven Mb siggnProven 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:

Derrimon Trading pumps up profit

August 18, 2015 by

Derrmn 6-15 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.
Derr staff 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:

Ansa McAl grows profit

August 17, 2015 by

ansaAnsa 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

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: , ,