Proven paid US$18.6 million or J$2.05 billion for FGFS a note in the company’s latest audited report stated. In April Grace Kennedy stated in a release to the stock exchange that the transaction is valued at $3.05 billion but excludes the seat on the Jamaican Stock exchange which the Grace group will keep.
Grace Kennedy advised the stock exchange of the finalization of divestment of the shares held by subsidiary, First Global Holdings Limited in First Global Financial Services Limited (FGFS) to Proven Investments Limited effective May 30, 2014. Proven has changed of name of the company to PWL Transition Ltd. Proven have also indicated to the public that the name has been changed to and closed the former FGFS offices at Duke Street in Kingston, Ward Street in Mandeville and Bogue in Montego Bay relocating the operations to existing Proven offices in those locations.
Proven made profit of US$3.78 million for the year to March 2014 compared with US$4.2 million in 2013 from lower revenues of US$13.2 versus US$14.4 million.
Proven closes FGFS deal at $2B
H&L profit up 310%
Profit after tax at Hardware & Lumber (H&L) was $40 million for the three months ending March this year, a 310 percent increase over the $10 million for the same period in 2013 resulting in earnings per share of 50 cents, compared to 12 cents for the comparative period in 2013. Return on equity based on the first quarter results is 13.6 percent, based on IC Insider’s projection of $434 million or $5.40 per share for profit after tax for 2014, the return on equity should hit a strong 31 percent.
Revenue| Sales for the 2014 quarter was $1.81 billion, 17 percent more than the $1.55 billion achieved in 2013. According to management in their report to Jamaica Stock Exchange” revenue in the ‘Household, Hardware and Building Products’ segment increased by 16.7 percent while the ‘Agricultural Products and Equipment’ segment recorded growth of 17.7 percent. All of our merchandise categories did well, led by the building supplies division which delivered significant revenue growth, albeit at lower margins. The overall improved performance was realized in both the wholesale and retail divisions of the business through the expansion of product assortment, improvements in availability and by working closer with our customers to better understand and supply their needs”.
Gross profit| H&L achieved $411.5 million in gross profit or a meagre one percent gain over the corresponding period in the prior year. “The average margins declined by 3.6 percent, due primarily to the sales mix and higher product costs. Total operating expenses were $376 million or 4.6 percent lower than the comparative period in the prior year. The company realized savings in pension and other retirement benefits costs from the changes to the benefits programmes implemented at the end of 2013. In addition, several categories of expenses including staff costs, utilities and repairs and maintenance expenses were reduced through ongoing process improvement and cost containment”
“Net current assets increased by 12.4 percent to $1.05 billion, caused mainly by increased inventory and accounts receivable balances. The value of inventory increased to $1,448.4 million, partly due to the higher cost of the United States dollar as well as a desire to maintain adequate inventory levels to ensure consistent product availability for our customers” management indicated.
At the end of March, cash was $313 million representing a decline of $45 million when compared to the balance at March, 2013, equity stood at $1.2 billion.
JPS profit climbs
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.
Carreras to pay $1.75
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.
C&W Q4 income up 14%
Cable & Wireless reported a loss for the 12 months to March of $3.5 billion from $18.4 billion in revenues, down from revenues of $19 billion in 2013 but the most important news hidden in the figures is a 14 percent increase in revenues in the March quarter compared with the 2013 same quarter. This is the first major increase since the June 2012 quarter versus the 2011 period when revenues hit $4.8 billion. This year’s quarterly increase is only the third such, since calendar year 2010 and is critical when assessing the companies immediate future prospects. The loss reported by the company includes a staff separation cost of $1.5 billion, without this the loss for the year would be $1.9 billion, still large but with the growth in revenues as reflected in the March quarter losses from ongoing operations looks to be headed for oblivion sooner than later. In all likelihood Cable & Wireless should enjoy a profit from ongoing operations in the current year that should flow form cost savings and increased revenues.
The reduction in revenue for the full year flowed from a change in the manner directory income is accounted for with the company moving from the booking of revenues and cost associated with its publication to one in which it only books a franchise income. In addition, the reduction in interconnection rates resulted in lower income charged to customers for termination on other networks resulting in less gross income being booked per minute particularly on landlines calls.
C&W increased the rates for monthly rental charge and business internet services effective at the beginning of April with increases ranging from 12.5 percent for the business flat rate voice plan to 2.44 percent for business internet premier extreme, the simple average increase being 5.85 percent. The growth in revenue experienced for the March quarter which should carry over into succeeding quarters and the increase rates effected in April coupled with the likely cut in cost to flow from the staff restructuring should see the company enjoying improving bottom line numbers going forward. The gains in revenues should see revenues in the $20 billion per annum mark again during the current fiscal year and it should get even better as they now move aggressively to continue to grow the mobile base from the 705,000 as of the end of March to a much higher level, with that, revenues should continue to climb moving net results from the red to black in the not too distant future.
On the negatice side interest cost should rise as local interest rates increase over that of 2014 fiscal year with most of the funding incurring interest at government of Jamaica Treasury bill rates which has risen in recent months over that of last year.
IC Insider still holds the stock as BUY RATED.
Dolphin boost Profit 26% – Buy Rated
In a period when many junior market companies reported lower profits, the entertainment company Dolphin Cove enjoyed a robust 26 percent increase in profit in the first quarter of 2014 with profits after tax rising to $148 million an increase of $33 million compared to the 2013 March quarter from an 11 percent increase in revenues to $436 million over the 2013 first quarter amount of $394 million. While overall revenues climbed 11 percent it was the attractions that delivered increases with an 18 percent gain as the other main income source was flat with earnings of $149 million in both the 2013 and 2014 periods. Management indicated that their investment in sales and marketing helped to produce the favourable results. The revenue gains took place in the period that did not include the Easter holiday which fell in April this year compared with March last year.
Operating expenses for the quarter was held to 8 above the prior year although there was increased Expenses in sales and marketing and devaluation of the Jamaican dollar. There was a reduction in the direct cost of dolphin attractions due to savings in the rental costs as a result of the purchase of seven previously rented dolphins, offset by additional depreciation and interest cost.
The company would have benefited from the fall in the value of the local currency as its income is denominated in United States dollars but much of its cost is ion Jamaican dollars. But the end in not yet in sight for the fall of the local currency as the country will enter the low inflows and high demand period starting in September, Dolphin stands to further benefit from this movement with income increasing and local cost kept under control.
The company’s income is substantially reliant on developments in the tourism sector as it get the bulk of its income from overseas visitors.
IC Insider’s forecast for earnings is $1.20 per share for the current year which end in December, last year the company earned 82 cents and paid out almost 50 percent of profit as dividends.
Equity stood at $1.44 billion at the end of March with borrowed funds at only $316 million.
The company owns properties in the Turks & Caicos Island and St Lucia where it intends to operate its attractions when implemented and fully operational these should add to revenues and profit down the road.
CI 4G LTE network complete
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.
Sagicor Group shares purchase
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.
Guardian Media profit drops
Trinidad’s Guardian Media (GML) reported profit after tax that declined to $3.8 million for the first quarter this year from $7.3M in the March 2013 quarter. The media group generated revenues of $44.5 Million for the first quarter compared with $46.1 million earned for the corresponding period in 2013. , The 2013 revenue benefited from advertising relating to election campaigning in that year. The March quarter is not the best in the media business coming after the high advertising Christmas period .
Management indicated in their report to shareholders that the 2014 results was impacted by lower revenues and increased operational costs including the acquisition of the West Indies home series cricket rights for the next six years.
Our Balance Sheet continues to strengthen with increases in net assets of $42.2 Million moving from $273 Million in 2013 to $315 Million in 2014 and cash reserves increased by $3.8 Million over the comparative period.
According to management investments made to date in talent, products and capacity enhancement, and a positive outlook for the economy in 2014, they are confident of achieving the budgeted projections for 2014. They did not disclose what their forecast is but IC Insider expects the company will earn close to the results for 2013 of TT$45 million.
