The all Jamaica composite index crossed the 92,000 point mark earlier in the morning and now sits at 92,020.82 after gaining 515 points.
Slow early trading on JSE – Thursday
March 5, 2015 by
Eileen Chin resigns from Lasco
March 5, 2015 by
Eileen Chin has resigned as the Managing Director of LASM with effect from March 2, 2015 a release from LASCO Manufacturing Limited (LASM) announced.
The company advised that Robert Parkins has been employed with effect from March 3, 2015 as the General Manager of the company with responsibility for the day to day operations, reporting directly to the Executive Chairman. The resignation appears sudden has there was no prior notification of her intention to step down from the position she had held for several years.
Lascelles Chin, Executive Chairman informed IC Insider that Eileen Chin was taking a break from the operations but will be back before long. The company has been on a long period of expansion of the plant, costing more than $3 billion. Last year the liquid plant started the production of water and juices. The plant for powdered products is to be operational in 2015.
Margins squeezed Grace’s profit
March 4, 2015 by
Grace Kennedy reported flat profits for the 2014 year although revenues grew 20 percent for the year to reach $83.5 billion. Grace ended with net profits of $3.29 billion compared with $3.22 billion due to shareholders of the group.
Not even lower taxes that delivered savings of $200 million could push the performance that saw lower pretax profit of $4.85 billion versus $5 billion in 2013.
Gross profit climbed from $64 billion to $74.9 billion but profit margin declined to 4.13 percent from 5.23 percent in 2013. Frank James Group Chief Financial Officer attributed some of the decline to one off cost associated with the acquisition of the Le Fe subsidiary during the year and tightness in the local economy that placed pressure on the margin as the devaluation to the local currency pushed up cost which they were not able to pass on in full. But there is more to it than that. Grace’s segment results showed no growth in segment profits between the September and December quarters, in food trading and insurance, two important profit areas of the group. Profit in the last quarter was make primarily by Hardware and Lumber and money transfer.
Results for segments were mixed with money transfer ending with $2.39 billion up from $1.9 billion, Insurance rose from $122 million to $454 million. Food retailing ended at $875 million from $1.145 billion in 2013 and hardware & Lumber reported $284 million versus $343 million in 2013.
The group reported earnings of $9.90 per share and announced an interim dividend of 75 cents per share payable on May 18, 2015 to shareholders on record as at April 28 with the ex-dividend date being April 24. Return on equity for the group is only 9.5 percent a relatively low rate in a country where Treasury bill rates were close to that level during the year.
Profit up 92% spawns $817m SVL dividends
March 3, 2015 by
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Supreme Ventures (SVL) will be making a surprise dividend payment to its shareholders in March and May. The company just announced a final ordinary dividend for the year ended December 2014 of 8 cents per share payable on March 21, 2015 to shareholders on record as at March 6. SVL also declared a special dividend of 23 cents per share to shareholders on record as at March 6, with 19 cents per share to be paid on March 21 and 4 cents per share payable on May 27, 2015. The stock will traded ex-dividend on March 4. The ex-dividend date for both dividends is March 4.
SVL paid dividends of 3 cents per share on January 8, last year as well as 3 cents in March, 9 cents in May, another 3 in September and 5 cents per stock on December 9, last year. The final regular dividend for 2014 brings the total relating to the 2014 profit to 19 cents per share or 54 percent of profits for the year. The total dividend payment just approved by the company totals 31 cents per share and is just short of the total profit for 2014 of 35.2 cents per share.
The company just reported full year results showing profit after tax rising by 93 percent to $930 million from revenues that climbed by 21 percent to $41.3 billion. The profit provided a decent return on equity of 24.2 percent. Earnings per share ended at 35 cents. The December quarter was a very good one for the company with revenues of $11.3 billion and profit after tax of $313 million more than half of the $617 million generated to September.
The company enjoyed cost reduction in several line items with professional fees being slashed the most falling $81 million to $239 million. Overall operating cost fell from $2.77 billion to $2.65 billion in 2014.
Credible as the gains in profit is for 2014, Management has lots more work ahead in cutting losses in sports betting amounting $194 million up from $130 million in 2013 and Gaming lounges losses of $461 million versus $556 million in 2013. For the December quarter gaming losses amounted to $85 million compared to an average of $126 million in the previous three quarters and sports betting contributed $46 million in losses for the final 2014 quarter. Without the losses in these two areas profit would have been much larger. IC Insider is forecasting profits for 2015 to be in the order of 45 cents per share.
At the end of the year the company had cash funds of $2.22 billion and the dividends amounts to $817 million will consume some of the cash on hand by time the payments are made later this month and in May.
Access joins tax line
March 2, 2015 by
Access Financial will pay only $4.7 million in taxes for 2014, having enjoyed tax free profit for most of the year. The tax charge left $306.7 million in net profits or $1.12 per shares up from $270 million in 2013. But Access suffered a big increase in bad loans amounting to $229 million, more than doubling the $95.7 million in 2013. Not reflected in the bad debt figure is $14.4 million listed in the financial as recoverable, in 2013 the amount was $12.78 million. Gross interest revenues were up by 29.5 percent to $938 million and net income of lending moved to 990 million an increase of 29.7 percent. Other expenses rose by 18.3 percent.
For 2015 and the following 4 years, less a quarter, the company will be subject to tax on profit at 12.5 percent or 50 percent of the regular tax rate.
The stock sells at a high premium to net asset value of $2.96 per share compared to the stock price of $9.60 but that is partially explained by the rich 43 percent return on equity. At the end of the year loans advanced fell to $1.085 billion from $1.12 billion in at the end of 2013 while loans received fell from $543 million to $317.7 million and cash funds increased to $127.9 million from $49 million.
IC insider forecast earnings of $1.60 for the current year after tax at 12.5 percent. The stock remains Buy Rated for long term growth.
Tax credit saves JSE
March 2, 2015 by
A tax credit of $7 million saved the Jamaica Stock Exchange (JSE) from reporting a loss in 2014 as the exchange reported lower interest income of $42.4 million versus $56.5 million and an 11.6 percent higher operating income.
The JSE encountered higher operating cost that rose 11.7 percent for the year to $384 million which is higher than the operating income of $337 million. Property expenses grew 33 percent to $83 million, wages was up by 13.5 percent to $171.7 million and professional fees by 48 percent to $35.6 million.
JSE ended up with a profit after tax of only $3 million versus $5.7 million in 2013. Earnings per share was only 2 cents but net asset value per share ended at $4. The stock last traded at $2 on the Jamaica Stock Exchange.
For the year to September the JSE reported only $8 million in profit or a mere 6 cents per share, but bad debt recovered amounted to $10 million before tax. For the year to September revenues jumped $41 million to hit $242 million. Expenses climbed for the nine months, from $247 million to $273 million or just over 10 percent, a slower pace than the income growth of 20 percent for the same period.
The JSE needs a pick-up in market activity to deliver strong top line growth while keeping cost under control to satisfy investors, that could well come in 2015.
Arawak $153m impairment hits TCL
February 24, 2015 by
An impairment charge on its investments in the Barbados’ Arawak Cement Company, hits Trinidad Cement with a $153 million charge.
The impairment was not the only hit to profits for the year, write down of deferred tax assets hit results with $86 million, plunging the group for the full year to December, into a loss of $211 million compared with profit of $67.3 million in the prior year. The company in its report to shareholders just released states, “as a result of deteriorating market conditions the Group has impaired its investment in Arawak”.
Excluding the impairment and tax asset adjustments, the group would have reported a loss of $19 million before taxation compared with a loss of $9.7 million in 2013 December quarter and a profit of $58 million before tax compare to $39 million in 2013 for the full year.
Group revenues reached $2.1 billion, an increase of $172.5 million or 9.0 percent compared to the year 2013. Management reported that “this improvement was driven by growth in the domestic cement markets in Trinidad and Jamaica, improved concrete sales volume of 14.6 percent, and by price increases which were implemented in Trinidad, Jamaica and Guyana. Additionally, in Jamaica, CCCL was able to supply 155.4k tonnes of clinker (36.6k tonnes in 2013) to Venezuela.”
“The Company has commenced negotiations with the lenders and at the date of approval of the financial statements by the Board of Directors of the Company, the TCL Group and the majority of the lenders had reached agreement in principle on features of the loan restructuring and its key terms. In addition the Board has embarked upon a comprehensive financial and operational review of the TCL Group, which is in progress, and an overall restructuring plan for the TCL Group which seeks to secure the long-term viability of the Company is being implemented. This Plan includes the completion of the loan restructuring with the lenders, settlement of all back-pay payments to employees in Trinidad and Tobago and the injection of equity capital from the shareholders. This overall restructuring is expected to be completed by the second quarter of 2015,” the management in their reported stated.
The company rights issue which is to be priced at TT$2.90 per share is to commence on March 5 for shareholders on record as of the March 3. The stock traded at $2.50 on Monday quite some way off the $2.90 rights price.
Carib economies pressure T&T companies
February 22, 2015 by
Trinidadian companies are facing challenging times, the recent fall in the price of oil and gas on the world market has not made things any easier, in fact it is likely to make it worse.
Even before the collapse of energy prices profits of Trinidadian companies were pressured with little or just moderate growth. The challenges are not only in energy. Inflation in the twin island state has been running at high levels for some time with the latest figures showing 8 percent at the same time the country’s currency remained stable during the period of high price gains. While a lot of the increase was in the food category, it nevertheless would feed somewhat into general prices. While efficiencies could compensate for the higher prices, it seems unlikely with employment reaching very low levels placing pressure on labour cost as some businesses find it difficult to get persons to employ.
Against this back ground, it is not surprising that of 4 companies reporting for the December quarter, all show virtually profits.
First Citizens Bank could only turn a 2.8 percent growth in assets since December 2013 and 3.5 percent increase in loans into a 2 percent increase in profit after tax of TT$178 million from net revenues that were up to $430 from $428 million in 2013. Assets grew by 6.2 percent over September last year and loans are up 5.2 percent for the same period.
Expenses were flat at $210 million for the quarter. Earnings per share ended at 71 cents. For 2013 fiscal year, the bank earned $2.49. The stock price is now at $35.75 for a PE ratio of 14.
Massy Holdings reported a 20.6 percent jump in revenue but profit after tax rose only 6.5 percent to TT$144, that is well down on the 23 percent in the final fiscal quarter, to September last year.
Jamaica contributed less profits than in 2013 and so did Guyana but Barbados and Eastern Caribbean reported higher profits while T&T was flat and Columbia recorded profit. The business was acquired after the December quarter in 2013.
Segment profit before saw growth in Automotive and Industrial Equipment increasing by 30 percent, Integrated Retail gaining 8.8 percent, Insurance up by 14.8 percent, Energy and Industrial Gases fell 6 percent, Information, Technology and Communications declined 37.6 percent and Other Investments down 14 percent. The largest contributors to revenues and profits are Automotive and Industrial Equipment, Integrated Retail, Energy and Industrial Gases and other investments.
Earnings per share for the quarter amounts to $1.47 versus $1.39 in 2013, for the full year to September 2014, the company reported $5.69. Earnings should end around $6 for 2015. The stock price closed on Friday at $63.64, having peaked at $69.60 last year. The PE of the stock is around 11.
Republic Bank could not turn its 3.7 percent growth in assets into more than a 2 percent increase in after tax profit for the December quarter last year over the prior year even as loans grew by 9 percent over the same period. Net income grew by 4.5 percent to TT$899 million but operating expenses climbed a large 12 percent thus negating the increase in net revenues. The banking group saw a sharp reduction in the tax payable from$118 million to $97 million leaving $297 million for shareholders versus $291 million in 2013. The lower tax rate is partially due to a reduction in pretax profit from $423 million down to $408 million.
Earnings per share for the quarter ended at $1.84 versus $1.80 in the prior year and for the full year to September Republic reported $7.39 per share. The stock peaked at $122.05 last year, and has since retreated to close at $118.59 and looks set to decline some more. The stock carries a PE of 16.
Agostini’s reported profit of TT$27 million for the first quarter to December 2014 from revenues of TT$408 million compared with profit of $27 million from revenues of $378 million in the 2013 period. For the year to September 2014 revenues came in at $1.36 billion resulting on full year’s profit of $80.5 million. Earnings per share for the quart was 46 cents and $1.36 for the full year. The stock last traded at $17.60 at a PE of 13. Agostini’s is involved in pharmaceutical, personal care, food and construction product distribution.
25% jump in Berger Jamaica profit
February 19, 2015 by
Berger Paints Jamaica enjoyed a 25 percent jump in after tax profit, for the December quarter and 12 percent for the nine months to December, thanks to lower tax rate as profit before tax was up 16 percent and only 4.5 percent respectively.
Sales revenues were up 9 percent in the quarter, to $679 million and 6 percent for the nine months to reach $1.496 billion. Profit before tax, amounted to $84 million for the quarter, up from $72.5 million and $95.3 million versus $91 million.
After providing $21 million for tax, net profit for the quarter ended at $63 million or 30 cents per share, and for the nine months, earnings ended at $71.5 million or 33 cents per share.
At year end, cash ended at $48 million compared $41 million at the end of March, but current assets climbed to $891 million from $674 million at March and $792 million at the end of 2013. Current liabilities rose as well, to $422 million from $390 million at the end of 2013 and $290 at March last year.
Going forward, Berger should benefit from the lower price for oil on the world market as a major input into producing paints is oil based products. Profits for the year to March, should end around 34 cents. Investors should be seeing a large portion of the profit being paid out as dividend, with the stock price now at $1.56, the yield could exceed 10 percent. IC Insider forecast 54 cents per share for the 2016 fiscal year.
Berger Paints Jamaica is listed on the Jamaica Stock Exchange.
$46 PS for Eppley’s dividend
February 18, 2015 by
Eppley Limited will be making a dividend of $37.19 per share payable on March 17, 2015 to ordinary shareholders on record as of March 10, 2015.
The stock will trade X-dividend on March 6. The payment will bring the total dividend out of profit of 2014 of $46.19 providing a dividend yield of 12.15 percent per share based on the stock price of $380. The total dividend paid out of profit for the year, amounts to $36.77 million.
The company paid a dividend of $9 per share on September 2, 2014. Eppley reported profit of $51 million or $64.19 per share for 2014, an increase over the $39 million for 2013.
