Company News — Page 167

All 3 Lasco companies approve splits

June 27, 2013 by IC Insider.com

All three Lasco listed companies approved a 10 for 1 stock split at yesterday’s meetings called solely for that purpose. While the notice suggest that the splits take effect immediately the stocks traded at the old price levels in Thursdays trading. Lascelles Chin, the Chairman of all three companies confirmed to IC Insider that the record date for the Lasco splits is July 9, 2013 and the ex-date is July 5, 2013.

It will mean that Lasco Manufacturing will have 4.087 billion shares, Lasco Distributors will have 3.3664 billion shares in issue and Lasco Finance 1.228 billion shares. The split will mean that the stocks will trade for less than $2 initially as they are all priced under $16 now. Improved results for the first quarter of the 2014 financial year which ends in March should help pushed the prices up when they are released by early August this year.

Filed Under: Company News, Dividends Tagged With: Dividends, JSE Company, Lasco, Stock Split

Insider trades

June 27, 2013 by IC Insider.com

A director of Lasco Distributors Limited sold 200,000 of the company’s shares on June 14, 2013.

A director of Lasco Manufacturing Limited sold 200,000 of the company’s shares on June 13 & 14, 2013

Blue Power Group Limited advised that two senior managers sold a total of 159,995 shares during the period June 17 – 21, 2013.

Scotia Group Jamaica Limited advised that a senior manager purchased 2,792 SGJ shares on June 24, 2013.

A senior manager of Sagicor Investments Jamaica advised that they sold 20,000 S shares on June 21, 2013.

A related party to Honey Bun (1982) advised that they sold 5,000 Honey Bun shares on June 25, 2013.

Filed Under: Company News, General Business News Tagged With: Blue Power, Honey Bun, Sagicor, Scotia

Big payoff for Access owners

June 27, 2013 by IC Insider.com

Access Financial Services declared an interim dividend of 31 cents per share payable on August 15, 2013 to shareholders on record as at August 9, 2013. The ex-dividend date is August 7, 2013.

This is the first time the company is paying two dividends in one year. The last dividend paid was an interim dividend of $0.65 per share payable on February 27, 2013 to shareholders on record as at February 21, 2013 and related to 2012 profit.

The latest dividend announced will, when paid, bring the dividend payment to 96 cents for the year and will give shareholders a yield of 15.23 percent based on the stock price at the start of the year of $6.30. The Chairman has confirmed that “Access is likely to pay more than one dividend payment for the fiscal year going forward.”

The stock last traded at $8.15, a gain of 29 percent so far. IC Insider is projecting that the stock will rise much further as profit for this year could rise to well over $1 per share.

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

Unilever stock not supported by profits

June 27, 2013 by IC Insider.com

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When stock prices rise much faster than the growth in profits, we need to take time to take note of what is happening. Investors in such stocks should be fully conversant with the factors at play to ensure that their investment can be properly protected if, and when, the factors change.

Unilever Caribbean stock price is up 13 percent so far this year on top of a 45 percent increase in 2012, 44 percent in 2011 and 35 percent in 2010 after a 16 percent fall in 2009. The company a subsidiary of Unilever PLC, a United Kingdom company, is based in Trinidad and manufactures a range of homecare, personal care and food products for the Caribbean region, including Jamaica, and has been having a reasonable profit performance for a number of years. In fact they have been able to improve sales and margins in a market that has been in recession since 2009. The growth in the stock price is well in excess of the rise in profits for the past four and half years.

Some of the company’s brands include Mistolin, Radiante, Breeze, Vaseline, Lux, Lipton, Becel and Blue Band. The product range also includes dishwashing liquids as well as fabric conditioners.

For the three months to March this year, revenues climbed to $133 .6 million up from $127.5 million for the same period in 2012 while profits were up to $13 million after tax compared to $11.9 million in 2012. The December quarter is the biggest period for earnings with more than a third being generated in the period. For 2012 full year to December the company reported after tax profit of $59.5 million an increase of 2.8 percent over that earned in 2011. Profit for 2011 was up 11 percent over 2010 and 2010 profit was up 26 percent over the previous year. Lower interest rates in Trinidad have helped to push the PE ratio to 21 times earnings at a current stock price of $53.25, up from 14 times in 2011 and 11.5 for 2010.

Unilever reported areas of success reflected in good growth in some of its products but also expressed concerns about rising input cost of some of the products it manufactures as well as competition from cheaper products. From all indications, management seems to have managed to steer the operations well resulting in improved margins, which moved from 61.8 percent in 2012 first quarter to 63.8 percent in 2013, a continuation of the marked improvement seen for 2012 when the margins for the full year came out at 63.7 percent vs the 59.2 percent enjoyed in 2011.

While cost increase seems to be under control in 2013 for the first quarter, that was not the case in 2012 when selling cost rose by $17 million or 17 percent and administrative cost rose 22 percent, well above the growth in revenues. For the quarter, selling cost rose by 4.8 percent and administrative cost rose 2.7 percent while revenues are up 4.75 percent.

The company boast equity capital of $176 million, has no interest bearing debt and a high current asset ratio with liabilities almost covered twice over.

The stock seems poised to rise further as demand exceeds the supply of the stock on the Trinidad market.

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

Low loan demand squeezes BNS TT

June 25, 2013 by IC Insider.com

Scotia Bank Trinidad & Tobago hit a new 52 weeks high recently in the price of its stock, so what is happening at the bank to warrant the move in the stock price? Last year the stock was selling at $60.86 in April and on June 24, 2013 it sold at $70.01, a 15 percent rise, yet profits have not been growing all that well. However, the bank raised its dividend from 32 cents per share quarterly last year to 40 cents this year.

Interestingly, the fortune of the Trinidad bank and that of its Jamaican counterpart are tracking similar paths. In Jamaica, profits for Scotia Group have not grown from 2009, almost the same has happened in the Trinidad bank, with no growth since 2011. It looks as if the trend will continue for the Trinidad bank this year as well.

For the six months to April this year, Scotia Trinidad profits just barely budged above the results for the same period in 2012. Net Interest income fell from $462 million in 2012 to $443 million in 2013 but other income rose from $172 million to $224.5 million. The bank was able to keep a lid on expenses which rose from by $24 million to $314 million leaving a profit before tax of $353 6 million some $10 million more than that earned in 2012.

After allowance for taxation of $83 million, net profit rose to $273 million up slightly from $268.7 million in 2012. In the latest April quarter, after tax profits grew by only $1.9 million to reach $128.9 million.

The bank seems to have a good grip on loan quality as provisioning bad loans is very low at just $8 million for the six months, an improvement over the $10.5 million in 2012.

Return on Equity | The bank boasts a return on equity of 17.27 percent for the six months period, down from 18.47 percent for the full twelve months for 2012 financial year, which ended in October.

Where is the growth? | For profits to really grow attractively, the bank must grow its loans and assets at a faster pace than it has been doing since 2009. Loans to customers climbed by to $10 billion up from $9.96 billion in October but is flat with April 2012. Deposits did better as these rose to $13.47 billion up from $12.77 billion in April and $12.9 billion in October last year. Loans on the books in October last year contracted compared to the previous year by $700 million or 7 percent. Assets grew by 4 percent in 2012, 5 percent in 2011 and one percent in 2010 down from 11 percent in the previous year. The bank reported of assets of $18.4 billion and equity capital of $3.2 billion.

The bank operates in an economy that is yet to recover from the recession that started in 2008. A lot of the growth a few years prior to 2008 was induced by a major boost in the construction sector, which left newly built units that took awhile to either occupy or sell. This has been a serious drag on the construction sector and by extension, slowed growth in the economy. Without economic growth, bank lending will be slow, which is the main area for growth in income. GDP performance is as follows: 2009, minus 3.3 percent, 2010, 0 percent 2011, minus 1.3 percent, 2012, a positive 1.7 percent. The construction sector fared even worse falling by 7 percent in 2009, 28 percent in 2010 and 8 percent in 2011.

Stock outlook | Against this economic background, it appears that investors cannot expect to see electrifying growth in profits for some time. They also have to be aware that interest rates on savings are at very low levels and any upturn could affect the valuation of stocks on the Trinidad stock market further down the road.

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

Stocks to watch 24th June, 2013

June 24, 2013 by IC Insider.com

Keep an eye on these stocks for movement during the week of 24 to 28 June, 2013.

JSE Junior Market

Access Financial
AMG Packaging
Blue Power
Consolidated Bakeries
General Accident
Lasco Financial
Paramount Trading

JSE Main Market

Cargo Handlers
Desnoes & Geddes
Jamaica Broilers
Jamaica MMB
Mayberry
National Com. Bank
Sagicor Life
Scotia Group

TTSE

BNSTT
Clico Find
Grace
JMMB
Scotia Investments
WITCO
UNILEVER

Filed Under: Company News, Stocks to watch Tagged With: Daily Trading, Trading Activity, TTSE

JSE speaks of 2012 achievements

June 24, 2013 by IC Insider.com

Marlene Street Forrest in her overview of the Jamaica Stock Exchange group company’s performance for 2012 and operational plans for 2013 and beyond, stated that although there were economic challenges, the JSE saw an increase in operating income of 93%.

The Company’s operating income moved from $281M in 2011 to $542M in 2012, which contributed to the JSE Group’s net profit increasing from $34M in 2011 to $129M in 2012 an increase of 279% in net profit. Street Forrest told the audience that although most of the Exchange’s revenue came from trading fees she also attributed the increased in profitability to a diversification of the revenue streams for both the company and its subsidiary, which enabled the Exchange to survive in a difficult economic environment.

She indicated that the Exchange achieved a number of other positives during 2012: Increase in the number of companies on the Junior stock market, sale of member dealer license, progress made towards listing of JSE’s ordinary Shares, business process improvement, document management and business continuity plan.

The following goals were set for 2013/2014 period:

Listing of the JSE’s ordinary shares
Concentration of effort at marketing the JSE
Developing markets, new products and services for our customers such as:

Trading Government and corporate securities
Fixed Income Instruments
Depository receipts

At the special board meeting held immediately after the annual general meeting, Messer Donovan Perkins and Allan Lewis were returned as Chairman and Deputy Chairman respectively and Steven Whittingham was elected to the JSE Board subject to the FSC’s approval.

Filed Under: Company News, Company Results, JSE Main Market, Stock Market Tagged With: JSE Company

CPJ denies major customs breach

June 21, 2013 by IC Insider.com

Statement released by Caribbean Producers Ltd | It has come to our attention that recent newspaper articles and press reports refer to breaches of the Customs Act by a major importer operating out of Western Jamaica that is listed on the Jamaica Stock Exchange.

While these reports do not name our Company, CARIBBEAN PRODUCERS (JAMAICA) LIMITED as the entity in question, we wish to advise our shareholders and the wider public that we consider such reports to be erroneous.

The Company is a leading food service company and hotel supplier in Jamaica. It sources its products from some 30 countries and imports thousands of unique items in up to 100 containers per month. The Company considers that it has worked closely with the Customs Department and the Ministry of Finance in establishing and growing its business during the course of the last 18 years.

Contrary to the press reports, the Company continues to have the status of ‘AUTHORISED ECONOMIC OPERATOR’ (AEO), which is granted by the Jamaica Customs Department. Changes to the AEO program were introduced by the Customs Department and the Company, along with other AEOs, will need to comply with certain requirements leading to security certification by 31 October 2013.

More recently, one of the suppliers of the Company mislabelled a relatively small number of cases of pork products that the Company inadvertently imported in a large container containing a total of approximately 500 cases of pork bellies. This matter is under discussion with the Customs Department and the relevant supplier has admitted its liability, which arose due to their error, and has offered to pay any fines on behalf of the Company, which the Company believes will not exceed J$1.1M.

Any other information published by the press in relation to the Company’s position as regards the Customs Act, including references to potential fines in the region of J$3 billion, is not correct. The Company is committed to being a good corporate citizen and responsible publicly traded company, operating within the law and with regard to the principles of good governance.

Filed Under: Company News, General Business News Tagged With: Caribbean Producers (CPJ), JSE Company

Reports of Insider trades

June 19, 2013 by IC Insider.com

Trades by directors or persons or entities connected with company can be a powerful tool as to what may be taking place in a company. That may not always be the case as it all depends on the reasons for each action.

In the Jamaica, there are some companies that have ‘connected parties’ whose trading in the company stock may tell a story as to what can be expected down the road. For example, Mayberry Investment is one company that buying by insiders usually sends a strong message for future prospects. Jamaica Broilers is another company where insider buying and selling more often than not, sends a good message. We list below recent insider trades. Investors can make of them as they see fit.

JMMB | Jamaica Money Market Brokers Limited advised that a connected party sold a total of 5,000,099 JMMB shares during the period June 10 – 13, 2013. Also a connected party sold a total of 426,500 JMMB shares during the period June 4 – 12, 2013.

Honey Bun | Honey Bun (1982) Limited advised that a Director sold 5,000 Honey Bun shares on June 13, 2013.

Sagicor | Sagicor Life Jamaica Limited (SLJ) has advised that an Executive sold 2,000,000 SLJ shares on June 12, 2013.

PanJam | Pan-Jamaican Investment Trust Limited (PJAM) has advised that a director sold 14,200 PJAM shares on June 14, 2013.

MIL | Mayberry Investments Limited (MIL) advised that a related party purchased 26,400 MIL shares on June 14, 201 and that another trade purchase took place by related parties of 238,853 MIL shares during the period June 10 — 11, 2013 and another purchase of 6,739 MIL shares took place on June 5, 2013.

TCL | Trinidad Cement Limited (TCL) advised that two senior managers purchased 207,365 and 99,000 TCL shares on May 14, 2013 and June 4, 2013 respectively and that a person connected to a senior officer purchased 100,000 TCL shares on June 14, 2013.

JAMT | Jamaican Teas Limited has advised that a party related to a director purchased 18,948 shares during the period May 21, 2013 to June 6, 2013.

PURITY Consolidated Bakeries Jamaica Limited has advised that a Senior Manager purchased 18,300, 000 in the company on May 31, 2013.

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: Daily Trading, JSE Company, Trading Activity

KPREIT a medium term investment

June 18, 2013 by IC Insider.com

Funding an operation with low interest rate foreign currency loans while the home based currency is weak can prove costly, and the way the accounting profession treats the changes in currency movement can mean profit or loss at least in the short term. That is what’s happening to Kingston Properties Real Estate Investment Trust (KPREIT) in the latest results to March this year. Revenue was up 13 percent but profit plummeted to a loss, thanks to a foreign exchange loss of $14.5 million incurred in the quarter. The company recorded a net loss of $7.2 million after a tax credit of $3.56 million, but total group comprehensive income was $15.2 million, an increase of 144.8% versus $6.2 million reported for the quarter ended March, 2012.

Revenues | Revenues climbed to $23.5 million in the 2013 quarter up from $20.8 million in 2012. This reflects primarily rental increase for existing tenants and a stronger rental market for new tenants especially at the Loft II in Miami, the company’s management reported.

Group operating expenses, consisting of direct property expenses and administrative costs, were $14.8 million, versus $10.3 million for the similar period a year ago. Direct property expenses include insurance, property taxes, homeowners’ association (HOA) fees, broker fees and repairs & maintenance. These represented 60.4% of operating expenses for the March 2013 quarter versus 58.4% for the similar period last year. Increase in direct property expenses accounted for approximately $2.9 million of the $4.5 million increase in overall operating expenses. The major contributors were repairs & maintenance, HOA fees and property taxes.

Group finance costs were $19.6 million for the quarter compared with $7.4 million for the similar period in 2012. These amounts include unrealized losses of $14.3 million and $2.5 million respectively, due to foreign currency translation losses resulting from the devaluation of the Jamaican dollar.

Balance Sheet | Significant balance sheet assets are Investment Properties of $850 million at the end of the quarter versus $641.4 million at March, 2012 and cash & cash equivalent of $195 million compared with $185.3 million for the similar period last year.

The primary drivers of the increase in the investment properties were fair value gains of $166.3 million on the Red Hills Road property and positive currency impact of $30.3 million on the Miami residential condominiums. Included in cash and cash equivalent is restricted amounts of $168.1 million.

Total group liabilities were $350.3 million at March, 2013 versus $331.5 million at March 31, 2012. These amounts include current and non-current loans payable at the end of the quarter of $325.1 million and $305.2 respectively. The liabilities are primarily mortgage loans. The devaluation of the Jamaican dollar resulted in an increase in the loans which are quoted in the United States dollar and amounted to US$3.4 million at end of March 2013 versus US$3.6 million at end of March 2012.

Cash flow | Net cash provided by operations was $23.9 million for the quarter versus $22.7 million for the similar period last year. A dividend was paid in the March 2013 quarter amounting to $9.9 million, a 63.1% increase over the $6.1 million paid in the March 2012 quarter.

Long term pay-off | Real estate investment is not a good cash generator at least not in the early stage of the investment. By its very nature, the level of income to be made in the short term will be limited. One strategy the company has is the investment in the apartments in Florida that could be disposed of when that market fully recovers and therefore provide cash flow for distribution or capital for expansion. Investors in the stock are likely to have to wait for a while for a big pay day. Nevertheless the stock provides a option to diversify ones investments.