CWC CALA gets 1.6B C&W Jamaica shares

March 16, 2018 by

parent company of C&W Jamaica now owns over 91% of the shares.

CWC CALA Holdings now controls 91.73 percent of the ordinary stock units of Cable & Wireless Jamaica following an offer made on December 28, last year, to purchase 3,027,138,546 ordinary stock units owned by minority shareholders of J$1.45 per stock unit.
Acceptance was received from 3,184 shareholders who tendered 1,639,751,868 ordinary stock units but 3,180,025 units were deemed invalid reducing the amounted accepted to 1,636,571,843 units representing approximately 54.17 percent of the ordinary stock units held by the minority shareholders and approximately 9.7 percent of all the ordinary stock units issued.
With the parent company now holding over 90 percent no mention was made about compulsory acquisition of the rest but IC Insider.com has been informed in January that it is the intension of the parent company to have the company delisted.
Cable and Wireless reported operating profit of $5.134 billion dollars before exceptional item of $112 million and finance charge of $5.2 billion and a small of loss of $138 million. Profit for the December quarter before taxation charge was $600 million and $700 million excluding the exceptional item.
Most importantly, based on the method on which the bulk of interest rates are computed, the cost for 2018 assuming no major increase in the amount of borrowing, then the rate which averaged over just over 8 percent in 2017 should fall to around 6 percent in 2018 and cut around $1.3 billion from the interest bill thus ensuring that this year will be profitable. The actual formula is based on 2.79 percent above the weighted average six months Treasury bill auctioned immediately prior to May 11 and November 11. According to the 2017 audited accounts, the rate applied was 7.68 percent at the end of last year versus 8.62 percent that was applicable up to May last year. With the six months Treasury bill rate just above 3 percent currently, assuming no shift in the policy then savings will be in excess of 2 percentage points for 2018.
Investors in the company were never provided with the information on the full 2017 year’s results or given any indication about what could be expected for 2018 and beyond. The rules of the capital market does not really protect the investing public and this is not a satisfactory manner in operating a stock market.

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A KEY Partnership for life!

March 9, 2018 by

Treveen Little- Company Secretary and Compliance Officer at Key Insurance plays her part by donating blood in the company’s drive.

Junior Market listing, Key Insurance Company recently staged its inaugural Blood Drive at the Company’s Head Office in Kingston, in partnership with the National Blood Transfusion Service, more commonly known as the Blood Bank.
The event, coordinated by Carlene Isaacs, Reinsurance Manager and Corporate Social Responsibility team leader at Key, collected 33 units of blood. Key Insurance Company views the Blood Drive as a crucial engagement tool for sensitizing employees and increasing awareness about the vital importance of giving blood. Also participating in this life-saving initiative were some of Key’s corporate partners inclusive of bankers, brokers, valuators and neighbouring businesses.
With the estimated annual blood transfusion requirement in Jamaica at 50,000 units, Key Insurance Company plans to make the Blood Drive an annual event in this important partnership for life.

Key Insurance trades on the Junior Market of the Jamaica Stock Exchange with the last traded price of $4.

 

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Sagicor Group profit up 7%

March 8, 2018 by

Sagicor Group profit climbed just 7% for 2017.

Sagicor Group recorded improved net profit of $12 billion for the year ended December 2017, rising by just 7 percent from $11.26 billion for the same period in 2016 and ending with earnings per share of $3.11.
Net operating revenues, rose 18 percent to $70.4 billion from $59.7 billion in 2016 but net movement in actuarial liabilities rose sharply from $4.8 billion to $10.7 billion while other operating expenses climbed from $20.15 billion to $24.59 with provision for credit losses turning a gain of $150 million in 2016 to a write off of $711 million in 2017. The tax charge for 2017 was flat with 2016 at $2.9 billion.
At the end of September, profit was $9.08 billion versus $7.39 billion in 2016 resulting in earnings in the fourth quarter being down on the $3.4 billion reported at September.
Total Comprehensive Income, attributable to stockholders amounted to $17.8 billion up from $15 billion in 2016.
Sagicor closed trading on Wednesday at $37.13 on the Jamaica Stock Exchange.

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Lower profit for Trinidad’s Scotiabank

March 8, 2018 by

Scotiabank of Trinidad and Tobago reported profit after taxation of TT$148 million with earnings per share of 83.8 cents for the quarter to January 2018, with a fall of TT$23 million or 13 percent compared to the 2017 period.
This reduction in profitability was driven by higher levels of loan loss provisioning combined with the increased corporation tax rate of 35 percent both of which are by products of n economy in recession for some time.
The bank enjoyed return on equity of 15.05 percent and return on assets of 2.44 percent. Revenue, comprising of Net Interest and Other Income of TT$445 million for the period to January, was flat compared to the same period last year. Net Interest Income of TT$321 million, was TT$14 million or 5 percent higher than for the same period in 2017, driven mainly by growth in retail loans and investment securities portfolios the bank stated.
Other Income for the same period was TT$124 million, TT$14 million lower than the prior year mainly due to lower revenues from the insurance subsidiary.
 Non-Interest Expenses for the quarter ended January 2018 was flat at TT$174 million but loan loss provision was TT$17 million higher than in 2017 at TT$45 million.
Loans to Customers, the Bank’s largest asset category, closed the period at TT$14.2 billion, an increase of TT$248 million or 2 percent compared to 2017.
A dividend of 50 cents per ordinary share, the same level as in 2017, will be paid on 13 April 2018 to shareholders on record as at 14 March 2018. The stock traded on the Trinidad and Tobago Stock Exchange at TT$61.90.

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Black Panther applauded by patrons & Palace

March 6, 2018 by

One of the many gripping scenes from Marvel Studios’ Black Panther.

Palace Amusement Company continues to reap sweet rewards from the phenomenally popular movie, Black Panther that Jamaicans are queuing in droves to see.
Now in its third big week, this Marvel Studios’ phenomenon, in keeping with growing demand island wide has resulted in Palace Amusement adding extra shows at all its cinemas, to satisfy it patrons who are eager to be a part of the film’s astounding appeal and drawing power.
According to a release from Palace its flagship Carib in Cross Roads, have moved to 6 shows daily up from 4, Palace Cineplex, Liguanea, has added daytime matinees on the weekend, in addition to 2 shows daily and in Montego Bay, Palace Cineplex will now have 4 shows daily up from 3. For show times check www.palaceamusement.com or see the press.
Palace reported a loss of $5.3 million in the December quarter from revenues of $233 million and a profit of $4 million for the six months period, from revenues of $493 million. By IC Insider.com computation the success of Black Panther should blast the December quarter’s numbers way out of the waters and well into the black and is likely to make 2018 the most successful year in the movie house’s history.
Palace Amusement Company is listed on the Jamaica Stock Exchange and last traded at $560.

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VM Investments dominates JSE’s trading

March 5, 2018 by

VM Investments closes at a new high on Monday.

Victoria Mutual Investments dominated trading on the Main Market activity on the Jamaica Stock Exchange on Monday, accounted for 60.4 percent of total shares traded and closed at a record high of $4.85.
Market activity on Monday fell well below that on Friday but the market indices climbed much higher even as advancing stocks just edged out declining ones. The main market ended with 26 securities changing hands, ending with 10 securities rising, 8 falling, 8 trading firm. The JSE All Jamaican Composite Index surged 2,130.17 points to 320,257.64 and the JSE Index adding 1,940.83 points to 291,790.92.
Trading ended with 4,116,289 units valued at $49,819,783 changing hands, versus 115,025,659 units valued at $1,171,809,500 on Friday.
In main market activity, Barita Investments closed at $7.50, with 10,345 shares traded, Berger Paints ended 7 cents higher at $19.07, with 63,799 stock units, Carreras finished at $11, with 18,161 shares, Caribbean Cement settled with a loss of 4 cents at $33.05, with 9,961 shares, Ciboney Group ended trading 3 cents higher at 10 cents, with 35,000 shares. Grace Kennedy traded with a loss of $2 at $44, with 4,300 stock units, Jamaica Broilers finished trading with a loss of 12 cents at $18.88, with 11,324 units, Jamaica Producers closed at $15, with 39,031 shares, Jamaica Stock Exchange ended 15 cents higher at $6.70, with 2,250 units changing hands. JMMB Group concluded trading with a loss of $1 at $25, with 288,866 shares, Kingston Properties finished at $6.65, with 680 stock units, Kingston Wharves settled with a loss of $2.25 at $39.75, with 298,752 units, Mayberry Investments ended trading 41 cents higher at $5.41, with 1,450 shares. NCB Financial Group traded with a loss of 30 cents at $99.20, with 66,155 shares, PanJam Investment ended at $41.50, with 14,567 units, Pulse Investments finished with a loss of 7 cents at $1.78, with 2,500 shares, Sagicor Group ended trading 40 cents higher at $37.50, with 32,719 stock units. Scotia Group finished trading 88 cents higher at $50.90, with 1,240 shares, Sterling Investments ended $1 higher to $14, with 4,300 shares, Supreme Ventures concluded trading with a loss of 45 cents at $11.50, with 159,366 stock units, Victoria Mutual Investments finished 40 cents higher at a new high of $4.85, with 2,484,967 units. Wisynco Group settled 25 cents higher at $10.50, with 525,358 shares and Sagicor Real Estate Fund ended trading at $17, with 37,978 shares. In the main market preference segment, Jamaica Money Market 7.5% traded at $1.95, with 1,220 stock units, JMMB Group 7.5% closed at 99 cents, with 1,000 shares, Proven Investments settled 10 cents higher at $6, with 1,000 units, changing hands.
Prices of securities trading for the day are those at which the last trade took place. For more details of market activities, see “JSE main market sharply higher – Monday.”

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CrediScotia costs Lasco Financial $1.5B

March 5, 2018 by

Lasco Financial profit dropped for 2017 Q3.

The acquisition of company operating CrediScotia, renamed LASCO Microfinance Limited cost Lasco Financial around $1.5 billion, data disclosed in the company’s December quarterly report shows.
The acquisition was funded primarily from related party advances which stands on the books at $1.27 billion. The amount will be repaid in full from a long term instrument being arranged to raise $1.5 billion at an interest rate of 9.5% and also to provide working capital to allow for expansion of the loan portfolio.
The acquisition was the main contributor for a $1.5 billion surge in the assets of the enlarged Group, taking it to $3.26 billion at the end of December.
Scotia Jamaica Microfinance Company, name was changed, effective at the start of December, following the acquisition by LASCO Financial Services in November 2017.
LASCO Microfinance now, a wholly owned subsidiary of Lasco Financial, is the ”fourth largest contender in the local microfinance market behind Jamaica National Small Business Loans, Access Financial Services and Worldnet Investment,” a release from Lasco disclosed.
The group “aims to continue a seamless transition to merge its networks, systems and processes over the next few months to effectively organize its operations under two main business lines – money services and loans through the

Jacinth Hall-Tracey, Managing Director of Lasco Financial.

LASCO Money brand and LASCO Microfinance.”
At the end of March 2017 loans advanced to borrowers on the books was $282 million and seemed to have climbed to approximately $650 million by September last year. The acquisition has increased the group’s loan portfolio to $1.3 billion, Managing Director of Lasco, Jacinth Hall-Tracey confirms. The merger has also almost tripled the loan team to just under 90 persons, spread over 13 loan offices island-wide.
Interestingly, while the acquisition of CrediScotia took place in November, the results for Lasco show no increase in income for the December quarter. For the September quarter total revenues reached $396 million up from $272 million in 2016, but the December quarterly, reports trading income of $407 million compared to the revenue in September, but it was well ahead of the $298 million generated in the December quarter of 2016. The December quarter is usually the period of highest revenues exceeding all other quarters by a good margin. “There was reduced fX spread compared with September quarter which impacted income; it also led to a revaluation loss,” Hall-Tracey informed IC Insider.com. Profit fell in the quarter to $55 million from $100 million in September an unusual development as profit would normally be greater than the amount reported in the September quarter, after recognizing some direct expenses for the acquisition and normal seasonal operational increases,” Hall-Tracey stated. There was short term debt which attracted legal & professional fees for the short term loan and there was finance cost as well as transaction fees for the short term borrowings to settle the sale price on Hall-Tracey informed IC Insider.com.
Adjusted for the above one off cost and set back earnings from ongoing operation is well ahead of the $55 million reported for the period in 2017 and augurs well for improved results for the March 2019 results.

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Mahfood family sold over 111.8m Wisynco shares

March 5, 2018 by

Wisynco had the largest trades on Friday.

On Friday almost 112 million shares in Wisynco Group traded with a value of $1.16 billion. “Yes the family sold 111,820,000 units on Friday with four pension funds taking up the block,” William Mahfood Chairman of Wisynco advised IC Insider.com.
Mahfood advised that when the family took the decision to go public the intension was to have sold 4 percent of the share the company to the public by way of new shares and 19 percent of the existing shares. Ahead of the initial offering a decision was made to sell only 20 percent of the company to the public with the balance to be sold after.
The sale of the shares on Friday was full filling the original decision taken which reduces Wisynco Group Caribbean Ltd holdings to just over 74 percent of the total shares issued or 2.776 billion units. Mahfood says there are no plans to sell any more shares.

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Sygnus Credit profit exceeding projections

March 5, 2018 by

Sygnus Credit Investments (SCI) raised approximately US$16 million in capital from institutional and accredited high net worth investors following a private placement in May 2017 and began operating on July 1, 2017.
By the end of December last year, Investment Income amounting to US$500,568 was earned, with total Expenses amounting to US$106,858, resulting in Net Investment Income of US$393,710, which represents the Company’s core operating earnings, data from the company’s interim results show. Unrealized gain of US$290,650 due to the appreciation of the Jamaican dollar against the US dollar, on an investments in Portfolio Companies that are denominated in Jamaican currency. This unrealized gain may fluctuate depending on movement in the Jamaican currency versus the US currency. Net Income after Income taxes of US$3,893 amounted to US$680,467 representing 0.01 cent per share, based on a weighted average number of ordinary stock units of 64,503,985.
The Company recorded Other Comprehensive Income of US$310,475 reflecting fair value gains on its investment in Portfolio Companies resulting in Total Comprehensive Income of US$990,942 for the period.
The net results for the period does not include Management Fees to be charged from January 2018 along with Performance Fees. Management Fees are computed at 1.9% of assets under management. Performance fees are computed at 15% of the return on equity above a hurdle rate of 6%.
The company has US$11.6 million invested in four Portfolio Companies in Energy Distribution, Beverage Manufacturing, Commodity Distribution and Food Distribution. At the current pace of investment, SCI is sourcing and investing an average of US$1.9 million in transactions per month, which is a faster velocity than anticipated a report by the company states.
The investment in Portfolio Companies is earning income at a yield of 10.3 percent. US$6.5 million or 56.6 percent of the initial investment in Portfolio Companies is structured with profit participation and other upside structures. At the end of 2017, the overall investment pipeline stood at US$30 million, including US$7.9 million with signed mandates. The demand is likely to be funded by new shares to be sold to the public this year.
Shareholder’s equity grew to US$16,705,798 at the end of 2017. The Company issued 159,269,523 ordinary shares initially at a price of US$0.10 and J$12.86 per share and has a book value of US$0.1049 or J$13.04 per share.
Sygnus Credit Investments is a specialty private credit investment company, focused on providing non-traditional financing to medium-sized firms across the wider Caribbean region. The investment objective of the Company is to generate attractive risk adjusted returns with an emphasis on principal protection, by generating current income, and to a lesser extent capital appreciation, through investments primarily in medium-sized firms using private credit instruments.
The Company targets Companies operating across a broad range of sectors, including manufacturing, distribution, financial services, energy, real estate, transportation, infrastructure and business services. Target companies typically have revenues between US$5 million and US$25 million.
Chairman of the board is Clement Wainright Iton, B.Sc., MBA, Non-executive Directors are Nakita Edwards CFA, FCCA,CPA, Hope Fisher, B.Sc, Ian Williams B.Sc, MBA,Peter Thompson, CFA, MSc, Damian Chin, BA, MSc and Ike Johnson, PhD, CFA. Executive directors are Jason Morris CFA and Beresford Grey.

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Trading picks up on TTSE – Friday

March 2, 2018 by

Market activity picked up on the Trinidad & Tobago Stock Exchange on Friday with 12 securities trading from just 8 on Thursday. The market closed with 240,391 shares valued at $3,651,230 trading, compared to 218,720 shares valued at $2,790,805 on Thursday.
The market closed with the prices of 6 stocks rising, 1 declining and 5 remaining unchanged. At close, the Composite Index rose 1.48 points on Friday to 1,270.21, the All T&T Index closed with a rise of 0.09 points to 1,700.32, while the Cross Listed Index gained 0.40 points to close at 113.37.
IC bid-offer Indicator|At the end of trading, on Thursday, the Investor’s Choice bid-offer indicator reading shows 4 stocks with bids lower than their last selling prices and 5 with lower offers.
Gains|Berger Paints ended trading with 20 cents gain and settled at $4.25, in exchanging 100 shares, JMMB Group finished 4 cents higher at $1.99, with 21,420 stock units changing hands, NCB Financial Group concluded trading with a gain of 3 cents to settle at $6.53, as 176,426 shares changed hands, Republic Financial Holdings added 1 cent to end at $101.51, with 15,356 stock units changing hands, Sagicor Financial rose 1 cent to $7.83, with 1,732 units and Trinidad & Tobago NGL rose 16 cents and settled at $27.27, in trading 1,900 shares.
Losses| Massy Holdings ended trading 25 cents lower at $47.25, with 5,000 stock units changing hands.
Firm Traded| Ansa Mcal ended trading at $60, with 3,000 units, Clico Investments closed at $19.90, with 8,841 units, First Citizens settled at $32.11, trading 6,057 shares, One Caribbean Media concluded market activity at $12.48, with 59 stock units changing hands and West Indian Tobacco completed trading 500 shares at $88.55.
Prices of securities trading for the day are those at which the last trade took place.

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