The Jamaica Stock Exchange junior market listing KLE group, expects to sign its first Tracks & Records franchise contract this year but remains silent on returning a profitability.
The outlook for the loss making group which shed its FICTION night club and Odyssey gaming lounge joint venture is positive according to CEO Gary Matalon in the annual report released this week.
“We have already been approached with offers to franchise the Tracks & Records brand and expect that the first set of agreements will be signed in 2015,” stated Matalon in his CEO’s message in the annual report about plans to enter USA.
The company recently completed its operations documentation which “meticulously” outlines every aspect of the business and training material and programs to give the franchisees the best chance for success.
The group made a $38.8 million net loss in 2014 compared to $55.8 million a year earlier. The out turn for the March 2015 quarter reverses the trend of lower losses in 2014 as KLE made a loss of $21.7 million from revenues of $49 million compared with $12.66 million in 2014, form revenues of $68.7 million. The financial position looks grim with equity of just $2.3 million a wipe out of from the $50 million it had in March 2014. Borrowings amount to $43 million, payables are at $75 million, receivables amount to $24 million and cash funds $7.5 million.
The group also welcomed that its latest shareholder Joseph Bogdanovich, chairman and CEO of Downsound Records which acquired 23 per cent of KLE with CEO Gary Matalon holding 16 per cent.
KLE Group not looking pretty
Cross currents impact Scotia Group
Faced with cross currents of one sort or the other Scotia Group has had to navigate some traitorous water over the past two years or so. They may be coming to the end but their latest results are not very encouraging. For with profit of $10.5 billion in 2013 up from $10.2 billion in 2012, Scotia could just manage $9.76 billion last year or $3.14 per share. The group so far seems to be retreating rather than going forward, with the latest results.
Scotia in its latest quarterly report reported net profit of $3.845 billion for the six months ended April 2015, a fall of $1.1 billion, from the restated net income of $4.96 billion for the period ended April 2014. For the quarter to April net profit came in at $2.3 billion versus $2.69 billion in the April 2014 quarter, reduction in foreign exchange trading and securities trading gains and increased in other operating costs were major contributors to the decline but were partially offset by increased fee income and insurance revenues.
Jackie Sharp CEO of Scotia Group
Net interest income after impairment losses for the period was $11.4 billion, an increase of $235 million when compared with the same period in 2014. There was a reduction in the impairment losses on loans of $242 million.
Operating Expenses for the six months amounted to $9.94 billion and increase of $434 million over the $9.4 billion in 2014 excluding the Asset Tax of $1.29 billion being recorded in the financial results for April 2015, compared to $484 million for April 2014.
The loan portfolio is up $10.8 billion or 7.9 percent over April last year, and after allowance for impairment losses, loans amounted to $147.55 billion as at April. Non-performing loans totalled $4.9 billion, representing 3.26 percent of total gross loans down from 3.45 percent last year and 3.34 percent as at January this year the bank advised investors. The Group’s aggregate loan loss provision as at April 2015 was $5.3 billion.
Earnings per share amounts to 74 cents for the quarter and $1.21 for the half-year and looks like ending the year just below $3 per share. The stock traded on the Jamaica Stock exchange at $25.50 on Thursday. A dividend of 40 cents was declared, payable on 15th of July.
Scotiabank T&T Q2 profit up 18%
Scotiabank Trinidad and Tobago released results showing net profit of $260 million for the six months ended 30 April 2015, an increase of $9.8 million or just 3.9 percent over the similar period in 2014. Most importantly, is not so much the half year number even as the show growth but the results of the April quarter with profits jumping 18.4 percent to $125 million from net revenues that is up by 17 percent to $347 million from $296 in 2014.
For the period, earnings per share, grew to 147 cents and was up to 71 cents in the quarter, versus 60 cents in 2014. For 2014 fiscal year to October, Scotiabank made earnings of $3.17, based on the latest they should exceed the 2014 results. Return on Equity (ROE) was 14.73 percent. Return on Assets fell slightly to 2.49 percent reflective of the continued spread compression being faced within the domestic economy.
Revenue comprising net interest and other income, was $702 million for the period ended April 2this year an increase of $51million over the same period last year. Net Interest Income for the six months to April, was $460 million, $21.3 million or 5 percent higher than for the 2014 period,
Other Income increased 14 percent for the six months to $242 million compared 2014. “The increase was driven by growth in our key segments Retail, Corporate and Commercial Banking and Insurance and complemented the strong asset growth” the bank said in a release to the Trinidad & Tobago Stock Exchange.
Total Non-Interest Expenses for the six months was $329 million, $18 million or 5.7 percent higher than 2014. Loan Loss Expense increased by $14 million when over the similar period in 2014.
Total Assets grew 6 percent to $21.4 billion at the end of April, with loans to customers ending the period at $12.7 billion an increase of $1.9 billion or 17 percent compared to 2014. Treasury bills holdings as at 30 April, 2015 totalled $1.7 billion which fell by $482 million when compared to 2014. Investment Securities grew by $731 million or 49 percent as the Bank moved to redeploy funds held in short-term instruments to higher yielding medium term instruments which became available in the market.
The bank will be paying a second quarter dividend of 40 cents per ordinary share, payable on 10th July 2015 to shareholders on record as at 11th June 2015. The stock traded on the Trinidad & Tobago Stock exchange on Wednesday at $62.54.
Scotia Investments disappoints.
Scotia Investments today reported another quarter of disappointing results, with profit after tax of $453 million for the half year to April, this year, representing a decrease of $371 million, when compared with the net income of $824 million for the period ended April last year.
For the quarter, profit after tax amounted to $316 million down from $468 million last year. The reduction in profit is partly attributable to the adoption of IFRIC 21, Levies, which requires a change in the accounting treatment for Asset Tax, as well as the increase in the asset tax rates imposed by the Government of Jamaica in May 2014, to be booked in full when due.
Total revenues for the six months of net interest and other income, was $1.67 billion, a reduction of $389 million or 19 percent below the corresponding period last year; and $856 million for the quarter was 5 percent or $41 million higher than for the comparative quarter in 2014.
Net interest income|Net interest income after impairment losses for the half year, was $929 million, a reduction of $284 million or 23 percent versus the corresponding period last year; and $459 million for the quarter, down $118 million or 20 percent below the April 2014 quarter.
Other revenues, which includes fee income, securities trading gains and net foreign exchange trading income, was $742 million for the period, $104 million or 12 percent below the corresponding period last year; and $397 million for the quarter, down $98 million from the April 2014 quarter.
Operating expenses for the quarter were $411 million, up from the $389 million over the 2014 quarter, due partially to a reduction in the Asset Tax. For the half year the operating expenses for the six months were $973 million, up from the $878 million over the 2014 period, due in part to the imposition and treatment of the Asset Tax which had to be booked in full up front. The asset tax in 2014 amounted to $86 million versus $148 million in 2015.
With the rebound in the local stock market, the company will enjoy increased trading fees from handling stock market trades as well as from unit trust activities, but they had a fall-off in gains on financial assets and foreign exchange gains during the quarter compared with 2014, this reduced the income by $164 million and $199 million for the half year.
Earnings per share ended at 75 cents for the quarter and $1.07 for the six months and should end up around $3 for the full year, which would be well down on last year’s results. The stock is listed on the Jamaica Stock Exchange and traded at $26.28 on Thursday.
The investment bank approved a second interim dividend of 45 cents per stock unit payable on July 16, 2015, to stockholders on record at June 23, 2015.
Witco ekes out small profit gain
Trinidad’s West Indian Tobacco recorded an increase of 6.9 percent in profit before taxation of TT$136.8 million, for the three months ended March 2015, over the corresponding period in 2014.
Profit after taxation for the period came in at $98.2 million, reflecting an increase of just 1.5% over 2014. The Company paid $3.3 million under a tax amnesty, in respect of an ongoing matter taxation relating to the company being slapped with additional taxes imposed by the ta authority after an audit.
The improvement in profit arose from an increase in revenues to TT$223.5 million, a slight increase over the $215 million reported in the first quarter of 2014 net of excise duty. The company increased the prices on its products late in 2014, the increase revenues suggest that there has been some fall out in sale volumes as a result, but the company benefited from reduced cost other than cost of sales amounting to $$3.5 million. Earnings per share came out at $1.17, based on the results the Board approved the payment of a first interim dividend of $1 per ordinary share, paid in May 2015.
Based on last year’s results, the first quarter is the one with the lowest profit and the last quarter with the Christmas celebration is the best, the company should therefore go on to better the $5.81 earned last year, to end around $6.50 per share.
The stock closed on the Trinidad and Tobago Stock Exchange at $125.31 on Friday at PE ratio around 19 times this year’s estimated earnings.
Caribbean Cream profit upgrade
Caribbean Creams profit upgraded to show a 62 percent increase to $56.8 million or 15 cents per share above the 2014 earnings, according the audited financial statements compiled by KPMG, the company’s new auditors.
The comparative 2014 results were $35 million after a small tax expense. The interim report had profit for the year at $49 million on slightly higher sales than the audit report showed. The major area of change was lower administrative cost of $12 million in the audited accounts versus the preliminary figures. Caribbean Cream enjoyed an increase of 305 percent in profit in the final quarter to reach $25.7 million up from $6.4 million in 2014 quarter, according to the data in the audited accounts and third quarter interim results.
IC Insider is forecasting profit of 244 million for the 2016 fiscal year or 65 cents per share from increased sales revenues that will flow mainly from a 15 percent price increase effected just before the Christmas season.
The stock which was listed on the junior market of the Jamaica Stock Exchange in 2013 at an IPO price of $1, traded at $1.10 on Thursday and has moved up from 65 cents just before the release of the interim results.
Carreras pays $2 Mayberry 20 cents
Carreras declared an interim dividend of two dollars ($2) per share unit, payable on June 25, 2015 to shareholders on record as at June 11, 2015. The X-date is June 9. The company paid an interim dividend of $1.60 per share payable on March 12, 2015
Dividends paid prior to the one in March are, $1 per stock on December 18, and an interim dividend of $1.20 per stock unit on December 11, 2014. In September, last year Carreras paid an interim dividend of $1.20 per stock unit, $1.75 per stock unit was paid on June 26. A special capital cash distribution of $1.34 per stock unit was paid on July 31.
Mayberry Investments declared a dividend of twenty cents per share (20 cents), payable on June 17, 2015 to shareholders on record as at June 10, 2015. The X-date is June 8. The company last paid a dividend of 12 cents per share on June 18, 2014.
Board of Directors of JMMB Group will convene a meeting on Monday June 1, 2015 to consider an interim dividend payment to ordinary shareholders.
Jamaica Money Market Brokers the forerunner to JMMB Group last paid a dividend of 16 cents per ordinary on December 16, 2014, prior to that the company paid a dividend of 17 cents per ordinary share on June 26, last year.
Purity profit jumps 204%
A 204 percent increase in profit for Consolidated Bakeries better known as Purity, in the March quarter saw net profit ending at $13.9 million (2014 $4.58 million) from a 15 percent increase in revenues of $226.28 million.
Gross profit margin increased to 34.2 percent from 30.6 percent in 2014 and contributed much to the increased profit. Lower electricity cost would have made a big contribution to the improvement in this area. Administrative and other expenses rose less than revenues at 6.7 percent and selling and distribution expenses rose by 12.1 percent just below the growth in revenues.
The company earned 6 cents per share well up on that for 2014 and compares with the 8.4 cents reported for the twelve months of 2014, IC Insider is forecasting 20 cents for the full year. With the stock price at $1.15 on the junior market, it boasts a PE of 5.7 and has a net asset value of $2.42.
Consolidated Bakeries that produces and markets baked products such as breads, buns, crackers and cookies has equity of $540 million, loans of $64 million and cash funds of $110 million.
Teas could have a good year
Jamaican Teas enjoyed good exports sales for the second quarter to March continuing the appreciable growth in the first quarter. Exports moved by 26.6 percent from $64 million to $81 million for the latest quarter and year-to-date $118 million moving to $184 million for an increase of 56 percent.
The strength in exports contributed to the overall increase in sales which moved from $259.2 million to $292.5 million, an increase of 12.8% in the quarter, helping to push profit to $20 million in the March quarter, a 19.8% increase from the comparable period in the prior year. Profit for the six months to March was $43 million, an increase of 16.2% compared to the related period in 2014.
Earnings per share is up to 26 cents for the six months and 12 cents for the quarter, with the expected completion of sale of units in the development property earnings could end up around 80 cents per share for the fiscal year, this could change depending on whether the company disposes of some of the equities it is holding. Sales for the six months to March 2015, are up 14.4 percent to $611 million from $534 million in the prior year.
Exports were helped considerably by the coming on board of a new distributor in the eastern cost of the United States which will see the company products being sold in Wall Mart stores during 2015. Exports were also helped by restoration of sales in the Florida area that was disrupted in the previous financial year from modification in distributorship in that area. Local sales in the manufacturing operations are ahead of the prior year but are not a buoyant as could be expected.
The Orchid property being developed that should add to Jamaican Teas’ profits in 2015 & 2016.
The company’s investment portfolio showed encouraging increase in value, with gains of $12 million during the quarter and $14 million year to March, subsequently it has increased further with the growth in the local stock market.
Jamaican Teas borrowings are at $397 million at March, $310 million is long term, the group equity of $691 million, investments at March amounting to $126 million with cash funds of $27 million. On completion of sales of units in the development property there will be a sharp reduction in loans outstanding and or a build-up in cash.
Jamaican Teas is involved primarily in the production of ingredients for hot beverages, but also sells water and other ready to prepare food products as well as operators supermarkets and in the real estate development. The company is listed on the Jamaica Stock Exchange junior market and last traded at $3.
Barita reports big profit jump
Brokerage house Barita Investments released half-year results showing profit of $130 million or 29 cents per share versus $105 million in 2014, the improvement came in the second quarter with profit of $84 million, or 19 cents per share, up from $48 million, fuelled by a big jump in investment gains, mostly from disposal of government of Jamaica securities.
Net interest income fell in the quarter as interest cost declined more slowly than the fall in income. For the quarter revenues climbed to 398 million from only $333 million in 2014 while operating expenses rose from $115 million to $128 million or 11 percent. Interest cost fell from $171 million to $151 million but interest income fell faster from $260 million down to $204 million, for a fall of $55 million thus squeezing net interest income from $88 million to $53 million.
Karl Lewin at the launch of Barita’s newest unit trust funds
Revenues from our non-interest income for the six months were above prior year with $309 million compared to $141 million with fees and commission income being 88 percent above prior year at $79 million with significant improvements coming from the revenues of the Barita Unit Trusts Management Company. Additionally, trading gains improved by 813 percent at $179 million compared to $21 million in the prior year, due to gains from sales of government of Jamaica bonds that enjoyed gains as Jamaican bonds started to attract renewed interest. Depreciation of the Jamaican Dollar and trading gains amounted to $42 million year to date down from $72 million in 2014.
“Operational costs for the 6 months period to March increased by 14 percent when compared to the same period last year. Over the same period, staff costs increased by 12 percent, triggered primarily by additional human resources and remuneration adjustments,” the company reported.
Administrative costs were 16 percent higher for the same period last year; the main contributors being our financial support of the Education Foundation and client support expenses.
Looking forward, earnings look set to reach at least 50 cents per share for the year and could be more, depending on the continued buoyancy in the stock market that should help lift commission income from trading for clients, increased stock market prices will increase the asset base of the equity lined unity trusts and generate more fee income. The revaluation in the Jamaican dollar in to March has been reversed thus restoring gains in this area. The decline experienced in interest rate spread may slow but that is unclear at this stage with rates on BOJ Certificate of deposits having fallen and Treasury bill rates continuing to decline.
The quarter ended with equity of $1.86 billion and total assets of $13.37 billion. The stock which is listed on the Jamaica Stock Exchange and last traded at $2.50 up from $1.95 prior to the release of the results.