Company News — Page 116

Jamaican Teas 2014 profit drops

January 5, 2015 by IC Insider.com

Jamaican Teas reported sharply lower profit, last year to September, of $52.7 million versus $93 million in 2013, with earnings per share of 31 cents. The figures were reported in the group’s audited financial statements release last week.
The results emanated from sale revenues of $1.14 billion down from $1.23 billion in 2013. There was approximately $50 million coffee sales included in the 2013 results with none in 2014. In 2013 the real estate segment contributed $185 million in revenues compared to only $26 million in 2014 with most coming in the September 2013 quarter.
Gross profit margin shrank slightly from 21.89 percent to 21 percent for the year, helping to cut gross profit by $17 million. Other operating income climbed to $24.7 million from $12.9 million in 2013, partially due to losses on sale of, and impairment of investments incurred in 2013, amounting to $13.5 million, but did not occur in 2014.

The Orchid property being developed that should add to Jamaican Teas’ profits in 2015 & 2016.

The company increased marketing spend by 50 percent for the year, in the local and overseas markets, to maintain or increase market share, while administrative expenses climbed 25 percent for the year and finance cost rose by 108 percent. The acquisition of the factory at Bell Road, is partially funded by loans, contributing to the increase. There was also duplication of some cost while the factory was being refurbished for occupation. In the final quarter, adjustments to cost and some asset values helped to depress the profit for the year and is not an indication that the group has moved into a longer-term lossmaking period.
Changes in our distributorship in the Florida at the start of the fiscal year resulted in some short-term fall out in sales and increased marketing cost. A new distributor was appointed in the US market that will provide wider distribution in some key cities within that country. Revenues are expected to benefit from this development starting with the December quarter. The 2015 revenues, should also benefit from the completion of sales of 16 units in the first phase of the real estate development in St Thomas. The supermarket in Savanna-la-Mar was close to a break even by year-end and while the one in Kingston remained profitable. The Montego Bay supermarket reported losses in line with what was incurred in the prior year.

There was approximately $50 million increased borrowed funds at the end of the year, putting borrowings at $304 million. The profile of the debt changed markedly, with long-term loans accounting for two thirds of the debt at the end of the fiscal year compared with just 2 percent in 2013. The portfolio of investments including equities, stood at $123 million at the year-end and shareholders’ equity of $635 million.
The company imports of black and green tea in bulk for packaging and the distribution local and overseas. it also packages and distributes herbal teas and distributes other bottled water, coconut milk and other pre-packaged food items. the group operates supermarkets and is involved in the rental of residential properties and the development of real estate for resale.The stock is listed on the Jamaica Stock Exchange and last traded at $2.50.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Jamaican Teas, Orchid Estate

Cargo Handlers’ Q4 profit doubles

January 1, 2015 by IC Insider.com

Profit for the September quarter at Cargo Handlers is up 117 percent over the 2013 results to $49.7 million from revenues that climbed a very strong 77 percent. Profit rose by a smaller 55 percent, for the nine months ending September this year, to $131.7 million or $3.52 per share from revenues for the nine months of $220 million.
Other income, mainly foreign exchange gains, fell 13 percent in the quarter and was flat for the year, at $16 million. During the year the company earned $13.6 million from leasing and $8.9 million from management fees charged to a related party – Bulk Liquid Carrier and Petroleum Transport Ltd.
Administrative expenses dropped 31 percent in the quarter and 9 percent for the year but operat9ing expenses climbed 37 percent for the quarter and 22 percent for the year well below the increase in revenues. The company paid a dividend of $1.80 per share during the year for a yield in excess of 13 percent based on the stock price of $13.50 at the start of 2014.
Looking forward the foreign exchange gains earned in the last two years is unlikely to repeat in 2015 as the Jamaican dollar is unlikely to slip to the same degree it did in the recent past, so earnings will need to exclude most of these gains which amounts to just over 40 cents per share. Investors could be looking at earnings per share around $4.80 in 2015. At a price of $16 the stock is undervalued but they are difficult to come by.
Equity capital stood at $200 million and net book value at $5.33 per share. There is virtually no borrowings and cash of $93 million.
The company is involved in primarily in stevedoring services and is in the process of acquiring a petroleum haulage company which it now manages pending completion of the sale. The stock is listed on the Jamaican Stock Exchange.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Bulk Liquid Carrier and Petroleum Transport Ltd, Cargo Handlers, company results, Jamaica Stock Exchange

Access dominates with 1.2b shares

December 30, 2014 by IC Insider.com

There was trading in 135,339,271 units of Access Financial shares which were primarily sold by Mayberry from their holdings and purchased by Proven Investments, in 33 trades. The acquisition places Proven at just under 50 percent ownership of the company. The trade was by far the largest on the exchange for the day and leaves less than 10 percent of the ownership in the wider public’s hands.
Trading on the Junior Market closed with only 6 securities traded and ended with 135,592,084 units valued at $1,218,415,832 changing hands. The JSE Junior Market Index fell 4.72 points to close at 684.63, with the price of only 1 stock advancing and 3 declining.
Even as the index slipped, the junior market continues to reflect renewed interest with 4 securities closing with no bids to buy and there were 9 securities that had no stocks being offered for sale. At the close of the market, the indicators point to rising prices ahead as there were 6 stocks with bids higher than their last selling prices and only 1 stock with the offer that is lower.
Stocks trading are, Lasco Financial ended trading with 3,000 shares as the price rose 2 cents to 98 cents, General Accident ended with 3,000 shares changing hands at $1.75, Lasco Manufacturing had 8,813 shares changing hands to close at $1.12. Access Financial closed with 135,339,271 units trading as the price slipped 5 cents to $9, Caribbean Producers finished with 1,000 shares trading lower by 2 cents to $2.03 and Lasco Distributors ended with 237,000 shares trading 4 cents lower at $1.41.

Filed Under: Company News, JSE Junior Market, Stock Market Tagged With: Caribbean Producers (CPJ), General Accident, Lasco Distributors, Lasco Financial, Lasco Manufacturing

Scotia Investments in transition

December 27, 2014 by IC Insider.com

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Scotia Investments (SIJL) reported net income of $1.79 billion results for the year ended October 2014, down $205 million from the last year. Net income for the quarter was $450 million, down $54 million from the previous quarter, and $123 million from the corresponding quarter last year.
Earnings per share for the year ended at $4.23 compared to $4.71 in 2013. The Return on Average Equity fell was from 16.55 percent in 20123 to 13.6 percent.
Net interest income for the year was $2.3 billion, down $519 million or 18 percent below last year and for the quarter, $499 million, down $81 million or 14 percent below the July quarter.
Non-interest income, which includes fee income, securities trading gains and net foreign exchange trading income, was $1.89 billion for the year, is up $237 million or 14 percent; and $487 million for the quarter, down $61 million compared with the July last quarter.
Total Operating Income, comprising net interest revenue and other income was $4.17 billion, a reduction of $281 million relative to prior year. Total Operating Income for the quarter of $986 million was down $233 million over the corresponding quarter last year.
Total operating expenses for the year was $1.62 billion, up $33 million or 2 percent compared to 2013. Expenses amount to $364 million for the October quarter, down $32 million or 8 percent against the July 2014 quarter, and it is also down 19 percent, against the 2013, October quarter.
Total on balance sheet assets amount to $72 billion and show a reduction of $1.4 billion compared to last year. At the end of October 2014, total funds under management stood at $151 billion, $96 billion or 64 percent represents off-balance portfolio, compared to 60 percent last year. The Scotia Premium Money Market Fund grew to $10 billion by the end of the year. For 2014, funds managed through the unit trusts and mutual funds increased by 17 percent year over year, due to both growth in volume and appreciation in value of the funds. Management states that “the change is consistent with our strategic initiative to focus on the growth of our unit trusts and mutual fund portfolios.”
Shareholders’ equity stood at $13.6 billion as at October 31, 2014, an increase of $1.15 billion or 9 percent compared to last year. Net asset value per share is $32.14 and the stock price $23.40 with the PE ratio just above 5 times 2014 earnings. With interest rates falling and the funds under management rising SIJL should put into a better performance in 2015.

Filed Under: Company Results Tagged With: Scotia Investments, Scotia Premium Money Market Fund

Barita’s ugly Q4 results

December 27, 2014 by IC Insider.com

Barita Investments had a decent nine months’ performance to June this year, with profit of $156 million versus $77 million in 2013. Profit had dipped for the June quarter from that of 2013 by just under 50 percent. The net result was earnings per share of 35 cents.
With those results investors would be forgiven if they felt that full year’s earnings would be closer to 50 cents per share than the 16 cents they reported. That company reported a loss in the September quarter of $66 million down from a profit of $24 million in 2013, pulling full year results to $71 million compared to $63 million in 2013.
Major contributors to the final quarter’s loss, are increased taxation of $26 million, with a loss before tax of $40 million. Investment impairment resulted in $42 million hit against profit while securities and foreign exchange trading ended up in losses and dividend income fell by $19 million. Net interest income dropped sharply as well, by 60 percent to $45 million while administrative cost was up 17 percent. Barita also picked up a loss of $10 million from an investment in an animated development company GSW Animated Ltd. Barita’s investment in the company is $28 million, for 11.84 percent interest.
For the full year interest expense rose 21 percent but income fell marginally, while income from fees, commission and securities trading were the only areas to show growth. Cost was kept pretty tight with only a 4 percent rise.
In 2013 Barita took a big hit on its investment portfolio when it swapped Government bonds for lower yielding ones, resulting in a write off of capital gains on their holdings. Interest rates rose between 2013 and mid 2014 resulting in a squeeze on interest margins. Some of the reduction on the interest income side was made for by a switch to foreign exchange holdings to benefit from the devaluation of the local dollar. Revaluation of the Jamaican dollar in the September quarter would have negatively affected return in this area. The local dollar slipped in the December quarter which should benefit them. Economic measures being pursued by the Jamaican government along with the sharp drop in oil prices will lead to greater stability or possible some revaluation of the local dollar in the months ahead. This will likely result in a portfolio shift that will improve net interest income. The local stock market is showing signs of improved interest and if this continues, trading income will improve for 2015 and the large investment impairment hit should not occur. The end result is that the company should enjoy better results in 2015.
Of import is the higher level of profitability, shown in comprehensive income statement, with gains of $242 million excluding revaluation gains on property. The increased comprehensive income resulted in the capital base of the company rising to $1.67 billion from $1.4 billion at the end of the 2013 fiscal year. Total assets being managed is $13.6 billion.
Barita should be seen a good play on the revival of the local stock market which is going to happen at some time in the near future, exactly when is unsure at this time, based on valuation and performance of companies it may not be far off.
The company’s stock is listed on the Jamaica Stock Exchange and last traded at $2.18 with net assets of $3.75 per share. Profit may have slipped in 2014 but that is not an indication of a permanent slippage as such the stock remains BUY RATED based on it low price and the potential for higher earnings ahead.

Filed Under: Company News, Company Results Tagged With: Barita Investments, Investments, Jamaican Stock

Massy Holdings profit jumps 23% in Q4

December 23, 2014 by IC Insider.com

For the year to September, profit for Massy Holdings rose only 2 percent, to $555 million or $5.68 cents per share.
Profit for the September quarter amounted to $190 million and is up a strong 23 percent over the 2013 results. The yearly profit is negatively affected by a $58 million cost incurred in relating to the company changing its name and form Neal and Massy to Massy Holdings along with other rebranding expenses. Earnings per share for 2015 should end up around the $6 levels, on the assumption that measures needed in the Trinidad economy to deal with the fall in oil price will not have any serious negative effect on the Group’s operations in that country. The PE for the stock will be around 11 times 2015 earnings and should provide a basis for the price to increase during next year as the target should be around 15.
Total revenues for the year is up 14 percent to $10.7 billion, and up 18 percent in the September quarter to $2.77 billion, the latter benefitted from the acquisitions in Columbia that contributed $123 million in revenues and $2.5 million in segment profit. Additionally, the group acquired majority interest in a supermarket business in St Lucia in late December last year. The income form that operation is included in the October quarter but would not be there in 2013.
Segment profit before rebranding cost saw growth in Automotive and Industrial Equipment increasing by 5 percent, Integrated Retail gaining a mere 2.5 percent, Insurance up by 17.6 percent, Energy and Industrial Gases 52.4 percent, Information Technology Communications 10.3 percent and Other Investments down 21.5 percent. Jamaica contributed 37 percent more in profits to the group in 2014 than in 2013, Trinidad from which the bulk of profit comes saw a 6.7 percent increase and Guyana 4.7 percent.
Massy Holdings is listed on the Trinidad & Tobago Stock Exchange and is involved in a wide range of products and services.

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

Ethanol losses & loan cost hit JBG profit

December 20, 2014 by IC Insider.com

Profit fell 30 percent, for the six months ending October this year and a whopping 43 percent for the October quarter at Jamaica Broilers (JBG). With chicken processing being their main product line, the company reported profit of $210 million in the six months to October, down from $301 million for the similar period last year.
JBG reported a net profit of $99 million for the October quarter down from $173 million in 2013. The fall in profit is due to three main factors. Interest cost climbed 106 percent in the latest quarter and 68 percent in the six months period and corporation tax jumped 180 percent in the quarter and 58 percent for the six months against revenue growth of 15 percent in the quarter and 14 percent year to date. The ethanol operations contributed considerably to the lower profit with a loss of $144 million versus $27 million profit in 2013, the loss made in the October quarter was $55 million. Rising profit in the US segment accounted for the bulk of the tax increase.
On a positive note management indicates that “new business in the Ethanol division looks promising with income already received in October and November.”
Administrative expenses climbed 11 percent in the quarter and 21 percent for the nine months to October, with the latter growing faster than revenue increase.
The United States segment has done exceedingly well, with segment profit moving from $202 million in 2013 to $572 million this year. Ethanol is a concern especially with world oil prices having fallen sharply this year. Other areas have just kept pace with the prior period, the increased debt cost is weighting down on profit and needs to be put on firmer and more cost effective footing. The company makes the bulk of it profit in the second half of the year and with ethanol seems to be generating added revenues things could be looking up in the second half.
Jamaica Broilers borrowed $800 million more since the year-end at the end of April pushing borrowed funds to $7 billion this was used to fund increased inventories that rose by $800 million over the same period.

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

H&L ups dividend slightly

December 20, 2014 by IC Insider.com

Rapid True Value one of the Companies owned by Hardware & Lumber

Hardware and Lumber increased the dividend payment for 2014 over the amount paid for 2013. The company declared an interim dividend of 32 cents per stock unit payable on January 23, 2015 to stockholders on record as at the close of business on January 7, 2015.
The stock will trade Ex-dividend on January 5, 2015. An interim dividend 30 cents per stock unit was paid on January 17, 2014 in connection with the 2013 profit. The increased dividend comes in the wake of Hardware and Lumber reporting profit after tax for the nine months to September of $113 million, or 26 percent more than the $90 million, for the same period in 2013. Earnings per stock unit for the nine months, is $1.40, up from $1.11 for the comparative period in 2013.

Filed Under: Company News, Dividends Tagged With: Dividends, Hardware and Lumber

US to normalise Cuban relations

December 17, 2014 by IC Insider.com

The long period or US embargo in trade in goods and services, with Cuba since the Castro regime seized power in the late 1950s, seems set to be reversed, according to a report earlier today.
According to Bloomberg news U.S. will begin to normalize relations in a surprising move by the Obama administration that will loosen a trade and travel embargo that is among the last remnants of Cold War policy. The action means not simply the opening of a U.S. embassy in Havana but the lifting of restrictions that have limited commerce and kept aficionados from legally bringing Cuban cigars to U.S. soil.
The change in the US attitude could have far reaching implications for Jamaica and the rest of the region specifically, as it affect tourism trade.

Filed Under: Breaking News, General Business News

First Caribbean 2014 profit disappears

December 16, 2014 by IC Insider.com

First Caribbean International Bank reported a big loss of US$151 million, a huge increase from a loss of just US$22 million in 2013. The news may appear gloomy but there is more to that than meets the eye. The news may well be a strong signal that its time to buy shares of this bank that sprawls over the wider Caribbean region.
Management cleaned shop, resulting in loans loss provision climbing 36 percent to US$206 million in 2014 and impairment cost relating to intangible assets of US$115 million. The latter should not repeat in the near term and loan loses may remain subdued with the heavy write off in 2014.
The October 2014 quarter enjoyed a major turn-around in fortunes as after-tax profit rose to US$24.6 million from a loss of US$66 million in 2013. The quarterly result was helped by a sharp drop in loan loss provision, falling from US$76 million in 2013 to US$13 million and operating expenses declining from US$130 million to $88 million. The July quarter also showed positive results, amounting to US$23 million after tax, suggesting that profit could be back on track.
Net interest revenues were down 1 percent for the year, but fell 7 percent in the October quarter, from the similar quarter, in 2013 as revenues fell 6 percent and interest cost was down by 5 percent. Other income fell in the quarter moderately, but was up for the year, by 2 percent. How will the bank grow its income, is the challenge going forward in the medium term, in a region that is suffering from economic stagnation and beset by high levels of national debt?
Customer deposits ended at US$9.2 billion from $9.8 billion at the end of the 2013 fiscal year while loans fell to US$6.14 billion from US$6.33 billion in 2013 and as high as US$6.83 billion at the end of the 2012 fiscal year. The bank’s balance sheet contracted during the year to $10.78 billion from $11.4 billion in 2013 due mainly to contraction in cash balances and loans but investment securities rose from $2.2 billion to $2.3 billion.
A final dividend of 1.5 US cents per share payable in January, was declared, it brings the total for the year to 3 US cents. The stock is listed on the Barbados and Trinidad and Tobago stock exchanges.