Mayberry Q1 profit hardly moved

May 3, 2016 by

MILTotal comprehensive income for the March quarter at investment bankers, Mayberry Investments, increased 165 percent to $364 million, compared to $137.6 million in the 2015 quarter. The more investment sensitive number, net profit, was just $94 million compared to $82 million in the corresponding 2015 quarter.
Earnings per share ended at 8 cents, up from 7 cents in 2015, making the stock at $3.40, fully priced based on current market valuation measures. Profit was boosted by $209 million in realised trading gains compared with $53 million in 2015 but suffered from unrealised investment loss of $94 million versus a gain of $12 in 2015.
Income from fees and commissions jumped 204 percent to $38.9 million. Net interest income suffered a reduction of 34 percent or $33.4 million to reach $65 million, dividend income declined from $57 million to $18.6 million and net foreign exchange gains ended at $34 million, down from $40 million.
The decrease in net interest income was as a result of the reduction in the size of the repo portfolio. A general decline in the global bond market due to speculation about US interest rates and changes in the market conditions which impacted the bond prices in the portfolio.
Operating expenses for the period rose 27 percent to $204 million from $161 million for the corresponding period in 2014, “The increase in expense is due to increased costs for consultancy as well as legal and professional services” Gary Peart, Chief Executive Officer stated. Additional provision for credit losses of $7.5 made during the period compared to a write back during 2015 of $5 million contributed to the increase.

Gary Peart, Chief Executive of Mayberry Investments.

Gary Peart, Chief Executive of Mayberry Investments.

The asset tax for 2016 was $31 million compared to $49 million in 2015 due to the reduced company’s total assets. “During the period liabilities were reduced by $4.6 billion as the company increased efforts to reduce the size of our repurchase agreements (repos). Repos at the end of March were $7.8 billion compared to $13.7 billion”, Peart said. The reduction in repo resulted in the asset base shrinking to $21.4 billion from $23.7 billion at March 2015. Growth in the investment portfolio and investments in associated companies supported by increased borrowing helped in preventing a larger decline. Total liabilities fell to $14.8 billion from $19.4 billion as of March 2015.
The group made investments in four associated companies since July 2015, making Lasco Financial Services, Blue Power Group, Caribbean Producers and Iron Rock Insurance Company associates and contributed $28 million in profit, there was no income from associates in the 2015 period.
At the end of the period stockholders’ equity was $6.6 billion, an increase of $2.3 billion over the corresponding period in 2015. Net book value ended at $5.50 per share and big premium to the last traded price of $3.40 on the Jamaica Stock Exchange.

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

Profits up 18% at Eppley

April 30, 2016 by

eppleyThe insurance premium financer Eppley, reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. The profit resulted in earnings per share of $13.27 in the first three months to March this year.
The improved results emanated from interest income of $43 million, down from $44.94 million in the first quarter of 2015 while net interest income ended at $15.4 million compared with $15.95 million in the 2015 quarter. Other operating income ended at $11.64 million from $5 million in 2015.
Administrative expenses climbed a big 34 percent to $16.48 million from $12.3 million.
The Board approved a dividend of $9 per share payable on April 20 to ordinary shareholders on record as of April 11. The board disclosed that they expect to maintain this level of dividend each quarter, to be adjusted with the final quarterly dividend each year, to distribute the vast majority of annual earnings.
Rights Issue|Eppley will be issuing additional ordinary shares to fund the expansion of our business through a rights issue to existing shareholders who will be advised shortly of the terms of the issue.
Proceeds from the rights will improve the equity capital which now stands at a paltry $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares. Leverage was 3.2 times equity capital at the end of the quarter, with the average cost of debt at 10 percent. At the end of the quarter, cash was $164 million and net asset value of $394 per share, while invested funds consisting mainly of loans, leases and receivables amounted to $1.26 billion, with an average yield of 16%.
Eppley last traded at $505 on the junior market of the stock exchange and boast a PE of 6 based on projected earnings of $80 per share for 2016 which would result in earnings growing by 14 percent over 2015 out come.

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

3 Lascos dominate on Friday

April 29, 2016 by
The Lasco companies traded the most shares on Friday.

The Lasco companies traded the most shares on Friday.

Trading on the junior market saw more stocks rising than declining, but a fall of $1.30 in the price of Lasco Manufacturing resulted in the junior market index falling by 38.55 points to end at 2,064.85 as the three Lasco listed companies accounted for the bulk of the volume for the day. .
There were 12 active securities trading, with 8 advancing and 3 declining. At the close, 9 stocks closed with bids higher than the last selling prices and 3 ended with lower offers. Volume traded is 2,216,522 shares valued at $11,878,080.
At the end of trading in a market, AMG Packaging traded 16,841 shares at $13, Caribbean Cream traded 68,200 units to gain 15 cents and end at $4.35, Honey Bun rose 20 cents to end at $17.20 with 305 shares trading. Iron Rock Insurance traded at $3.35 at the close while 8,800 shares changed hands, with a gain of 5 cents,JM Trdng Sht 29-4-16 Jamaican Teas traded 25,571 shares and fell 1 cent to end at $3.99, Jetcon Corporation gained 20 cents to end at $2.90 while only 500 units traded. Knutsford Express traded 9,600 shares but fell $2.10 to $16.80, Lasco Distributors rose 35 cents and ended at $7.60 with 998,711 shares trading, Lasco Financial gained 15 cents to close at $3.15 with 569,195 shares changing hands. Lasco Manufacturing fell $1.30 to close at $3.55 with 488,299 shares trading, Medical Disposables rose by 10 cents in trading 30,000 shares to close at $3.20 and tTech ended with 500 units changing hands to end with a gain of 27 cents at $4.45.

Filed Under: Company News Tagged With: , , , , , , , , , , , , ,

Guardian acquisition near complete

April 29, 2016 by

NCB hqtrNational Commercial Bank’s agreement November 2015 to purchase a 29.99 percent stake in Guardian Holdings Limited is much closer to completion with approval given by the two most important countries in the region.
According to a note in NCB’s March quarter results “the approvals in Jamaica and Trinidad and Tobago have been obtained, but a few others remain to be received but a few others remain to be received, following which it is expected that the transaction will be completed.”
The acquisition of the shares will be done through a private sale of shares from a group of large shareholders. The successful completion of the transaction required regulatory approval from territories in which both entities operate.
NCB reported profit for the six months ended March of $6 billion or $2.44 per stock unit an increase of $594 million or 11 percent and for the quarter profit of $3.6 billion was realised or earnings per share of $1.47. The group is on target to enjoy earnings for the full year, in the region of $5.50 per share.

Filed Under: Company News, General Business News Tagged With: , , ,

Profit jumps 127% for car mart

April 27, 2016 by
Sanya Goffe addressing the audience at the listing of Jetcon's shares in March.

Sanya Goffe addressing the audience at the listing of Jetcon’s shares in March. Looking on are Andrew Jackson and Karl Wright, directors.

Jetcon Corporation’s revenues grew 55 percent in the first quarter ending March, leading to an increase of 127 percent in profit before tax came of $19.35 million, while after tax the profit rose 126 percent to $14.6 million or 9.4 cents per share compared with $6.8 million in the same period in 2015.
The growth for the quarter is above the 50 percent increase enjoyed during all of 2015. Gross profit doubled to $32.4 million and gross profit margin, moved from 16.9 percent to 21.9 percent, during the quarter.
Inventory of motor vehicles and parts increased moderately since March 2015 but is up 46.7 percent since December 2015, to reach $123.9 million while receivables increased sharply but is due to amounts deposited with suppliers for goods. All loans that were outstanding at the end of December last year have since been repaid in full and cash on hand increased to $60.5 million helped by the inflows of funds from the initial Public offer.
The shares which were listed on the junior market of the Jamaica Stock Exchange in March this year, traded at $2.85 after details of the results were released.

Filed Under: Buy Rated, Company News, Company Results Tagged With: ,

Jamaica’s business optimism surges

April 24, 2016 by

New units built at Montego Freeport in 2015.

New units built at Montego Freeport in 2015.

Bank of Jamaica (BOJ) is reporting a surge in perceptions of present and future business conditions in Jamaica over December last year, as seen by business executives.
Present business conditions reached its second highest level in February when measured by the index of present business conditions, since the record high of 240.2 in the September 2007 survey, Bank of Jamaica reported.
The index of present business conditions increased to 224.9 from 190.4 in the December 2015 survey. The out turn compares with a low of 47.50 reached in April 2013 and in March 2010 the lowest level of 40. The index has a base of 100 in December 2005.
The executives have a heightened picture of the future as the index of future business conditions also climbed reaching 172.1 from 158.2 in the previous survey. Grph BCon 02-16The improvement in both indices reflected increases in the number of respondents of the view that conditions were or will be “better” while there were declines in the number of respondents indicating that conditions were “worse” the BOJ report stated. The recent improvement is reflective of a gradual improvement since the latter half of 2013 and it been on the increase since with the occasional slip as occurred in July 2015.
The chart shows that the perception of future business conditions is more stable than short term current conditions view. The data shows in the latter part of 2015, for the first second time since the commencement of the survey, the present business conditions have moved well ahead of future conditions.

Filed Under: Company News, Feature Stories, General Business News Tagged With: ,

236% jump in Carib Cement profit

April 22, 2016 by

Caribbean Cement shares traded at $25 after Q 1 results.

Caribbean Cement shares traded at $25 after Q 1 results.

Caribbean Cement Company reported strong 236 percent gain in earnings for the first quarter ending March with profit of $834m, 98 cents per share versus $248m in 2014 or 29 cents per share.
Full year 2015 results were a profit after tax of $1.5 million or $1.82 per shares but after accounting for exceptional income and expenses resulting in lower profit than from ongoing operations. Included in the one off cost was redundancy payment of $436 million which h will result in lower payroll cost that should be equivalent to the separation cost in the first year.
Revenues climbed to $3.977 billion from $3.58 billion in the first quarter as domestic sales grew while export declined. Interest cost declined from $65 million in the March 2014 quarter to just $5.6 million in the current quarter. Cost elsewhere fell by $270 million in the quarter to help boost the profit.
Carib Cement paid taxes of $244 million in the quarter according to data in the cash flow but the provision against the quarter’s profit is $118 million. Cement ended up with cash balance at $963 million but invested $203 million of the cash inflows while working capital used up $525 million.
The profit for the quarter brought accumulated losses to $4.9 billion which should be wiped out in 2017 if the current trend of profitability continues.
The stock traded as high as $25 on Friday after results were released.

Filed Under: Buy Rated, Company News, Company Results Tagged With: ,

$74m pay out by JSE

April 22, 2016 by

JSE signThe Jamaica Stock Exchange will pay $74 million in dividend on May 6, this year. The dividend translates to 53 cents per share. In December last year, the company made a payment of $65.8 million or 47 cents per share following a payment of 53 cents per share in July.
The stock will start trading ex-dividend on April 28, at which date new investors in the stock will not be entitled to the above dividend.
With the price of the stock in the $20 range in 2016, the yield is 2.5% and IC Insider projects that it is with profits for the year set to exceed that of 2015 dividends will be increased thus raising the yield for the year higher.
The company reported earnings for 2015 of $1.25 per share or $175 million, up from only $3 million in 2014. The company’s stock last traded on Wednesday on the Jamaica Stock Exchange at $20.55.
In December 2014, the stock traded at $1.50. The three dividends provide investors who purchased the stock in December 2014 if they held them, with a full pay back of the amount invested, not factoring in taxes.

Filed Under: Buy Rated, Company News, Dividends Tagged With: , ,

4 more Honey Bun shares

April 21, 2016 by

Honey Bun to split stock into 5 units

Honey Bun to split stock into 5 units

Honey Bun’s board of directors agreed to recommend at an Extraordinary General Meeting to be held in May 2016 a stock split for its shares. Accordingly, it is proposed that each ordinary share of the company be split into five shares.
The split will result in the Authorized Share Capital be increased from 97,500,000 shares to 487,500,000 shares of no par value, and the issued and fully paid capital of the company be increased from 94,253,390 shares to 471,266,950 of no par value.
Honey Bun reported a strong 175 percent increase in after tax profit to $45.3 million in the first quarter of financial year ending December 2015, from an increase of 42 percent in sales. The company enjoyed an increase in its gross profit margin of 47 percent compared to 45.4 percent in the 2014 quarter. Administrative, Selling & Distribution cost rose much slower than revenues at 21.5 percent over 2014. Earnings per share came out at 48 cents. Honey Bun earned 72 cents per share for the fiscal year to September 2015.
The stock last traded at on the junior market of the Jamaica Stock Exchange at $13.
If approved, Honey Bun will be the sixth junior market listed company to split their stock. Others that had a split are Access Finance and the three Lasco companies into 10 shares, and recently, Jamaican Teas into two shares for each one held.

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

Big Carib Cream’s profit hike

April 18, 2016 by

Kremi ice contCaribbean Cream may not have officially landed the 60 cents per shares that IC Insider forecasted last year, following release of their 2015 full year results. That was due to two main factors, one is the writing down of assets amounting to $31.4 million and exceptional cost incurred, with waste water disposal which IC Insider estimates cost around $80 million during the year.
The 2016 profit of 40 cents per share is coming from just 15 cents per share for 2015 following the writing off of assets amounting to $31.4 million, the equivalent of 8 cents per share. The company that produces the Kremi brand of ice cream for the local market, delivered profit 0f $151 million for the year an increase from only $56.77 million for 2015 and from sales revenues that were up 12 percent to $1.13 billion compared to $1 billion in 2015. Importantly, final quarter revenues climbed 16.57 percent to $317 million, from $272 million, an acceleration from sales in the November quarter that grew 9 percent to $258 million.
The growth in revenues is “due to our ongoing aggressive sales, marketing and promotional efforts. We continue to expand our wholesale and retail segments” the company stated in a release accompanying the financials.
The improved results flowed from what IC Insider stated towards the commencement of 2015, “going forward the benefits of installation of the blast freezer will be reflected for the full year, while it only partially impacted the last quarter of the just concluded 2015 fiscal year. They increased prices around 15 percent ahead of the Christmas period and may have seen some cut back in volume in the quarter as a result. They should be able to recover volumes going forward and even expand on it as the shock effect of the price increase wears off and more retail outlets are added.”
Kremi Gapnt“Importantly, electricity cost will fall from two standpoints one is the lower electricity cost around 20 percent from the peak last year (2015 fiscal) and lower cost due to the faster freezing of ice cream thus using less energy. The cost of milk powder is down quite sharply as well. Going forward, the margin should improve even more with the blast freezer installed in November, which management says will reduce utility cost and create capacity for greater production to enhance sales volume.”
Based on the recently released 2016 results, the company benefited from the above developments.
For the 2016 fiscal year, gross profit jumped by 62 percent over the 2015 full year’s performance and 72 percent for the fourth quarter. For the 2016 fiscal year, gross profit margin climbed to 40 percent in the last quarter, from 27 percent in the 2015 period, for the full year, the margin jumped to 39.67 percent compared to 27.2 percent for the 2015 period.
Administrative cost excluding the onetime asset write off, rose 29 percent to $210 million for the full year and by 78.7 percent to $58.2 million for the quarter. The last quarter reflects moderate increase in marketing cost from $6.4 million in 2015 to $7.6 million and $42.75 million for the full year versus $38 million in 2015. Finance cost in the quarter declined from $10.6 million in the prior year, to $4 million and to $17.76 million from $27 million in the prior year.
Borrowings declined from $155 million to $125 million and will result in reduced interest cost in the year ahead.
Kremi generated gross cash flows of $230 million for the year compared to $97 million and ended with cash funds of $153 million up from just $2 million in 2015. Equity capital at year-end amounted to $437 million.
Cash flows for 2017 fiscal year should be in the order of $436 million if the projected earnings of $1 per share are met. These numbers suggest that the payments of a dividend cannot be far off. The environment is looking positive for increased sales with the planned tax break for a large number of workers that will increase spending and expected pickup in economic growth.
The stock last traded on the junior market of the Jamaica Stock Exchange at $4.02 for a PE of 8.4 based ongoing profit for the fiscal year to February, or 4 times 2017 estimated earnings and compares with 12 times 2015 earnings for the junior market and 9.5 times estimated 2016 earnings for the top half of the market.

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