Lasco Manufacturing profit jumps

February 14, 2016 by

Bottle heating machine at Lasco Manufacturing.

Bottle heating machine at Lasco Manufacturing.


Profit at Lacso Manufacturing before tax jumped 79 percent to $764 million for the nine months ended December 2015, this compares with $426.3 million for the same period in 2014, while profit for the quarter increased 69 percent over the same period in 2014 to $267 million before provision of $35 million of corporate taxation.
The strong improvement flowed from 45 percent jump in revenue for the nine months from $4.83 billion, for an increase of $1.5 billion or over prior year’s $3.33 billion. Revenue for the quarter rose by a slightly slower 39 percent from $1.25 billion in 2014 to $1.74 billion in 2015. Gross profit for the nine months rose from $892 million in 2014 to $1.60 billion in 2015, an increase of $703 million or 79 percent in line with the increased profit. For the quarter, gross profit rose by $257 million or 89 percent from $290 million in 2014 to $548 million in 2015 but increased interest and depreciation cost associated with the new factory ate up proportionately more of the revenues than other cost.
One of Lasco's new products

One of Lasco’s new products


Operating expenses for the nine months to December 2015 rose by 82 percent or $313 million over prior year’s $383 million to hit $696 million, due to increases in staff compliment, marketing expenses and new products development costs. For the quarter to date, operating expenses were $220 million compared to $89 million in prior year.
Earnings per share for the nine months ended December 2015 rose from 10 cents for the same period prior year to 18 cents and should hit 29 cents for the full year and close to $1 in 2017. The stock which trades at $5 on the Jamaica Stock Exchange junior market, is selling above the market average, at PE of 17 times current fiscal year’s earnings. With new products now being produced, revenues and profit should continue to increase in the next fiscal year which would ensure that the current PE is not all that high but the stock make bounce around for a while until the next set of results are known.
The company generated gross cash flow from operations of $994 million versus $509 million in 2014 even as receivables rose to $2 billion inclusive of prepayment and deposit on equipment of nearly $600 million, compared with $897 million at the end of 2014 and $1.1 billion at the March year-end. Fixed assets net of depreciation swelled to $3.1 billion from $1.1 billion at March 2014 as capital work in progress fell from $2.26 billion to only $400 million. Cash funds grew to $372 million from just $50 million in 2014 but borrowings jumped to $2.15 billion including overdraft of $641 million from $1.38 billion at March 2014.

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C&W first profit in 7 years

February 14, 2016 by

C&W HQ 3Cable and Wireless reported a profit $144 million in the December quarter last year, the first time since they reported a profit of $32.6 million for the December quarter of 2008.
The 2015 quarterly profit was realised after accounting for an exceptional charge of $334 million for the quarter and is down sharply from a loss of $1.8 billion in 2014 that included an exceptional charge of $1.5 billion. For the nine months the loss was down to $644 million after an exceptional charge of $504 million compared with a huge $3 billion loss in 2014 after exceptional cost of $1.5 billion.
Revenues climbed in the quarter by 12 percent, to $6.1 billion on continued growth in mobile customers and data usage and for the nine months by 11 percent to $17.2 billion. Growth in revenues was helped by a 15 percent increase of 125,000 in new mobile customers, 22 per cent growth in mobile revenues and a more than doubling in mobile data income.
Operating expenses fell in the December quarter as wages declined by $420 million for the nine months period and fell by $122 million to $600 million in the quarter compared with the 2014 December quarter.
Advances from the parent company is up to $49 billion with interest cost being static at $1 billion but depreciation charge is down while amortization cost rose to $768 million from $489 million in 2014.
The results point to the company entering the 2017 fiscal year being the first full year in which the company should make a profit since 2007. The company’s stock last traded on the Jamaica Stock Exchange at $1.69 on Friday February 12, rising 29 cents in response to the results.

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Iron Rock IPO hits market shortly

February 12, 2016 by

bill McConnellIron Rock Insurance is one of 5 junior market companies poised to hit the market between February and March, ahead of the deadline for the ending of the tax break, accorded junior market companies.
Iron Rock is expected to be capitalized at just under $500 million and has as two of its principals William McConnell formerly managing director of Lascelles deMercado who use to own Globe Insurance Company and Evan Thwaites former of Globe Insurance.
Informed sources tell IC Insider that the prospectus should be out by the February 22, with the issue to be opened before the end of the month.
Mayberry Investments are the brokers for Iron Rock while JMMB Securities is handling two issues. The new listings if they are all approved, will raise the number of junior market listings to 34 and the number of companies listed to 30. In contrast the main market and the US dollar market has 35 companies listed plus a number of preference shares issued by companies with ordinary share listing.
The main market has almost stagnated and seems set to contract with two main market companies, that of Hardware and Lumber and Desnoes and Geddes look set to be delisted.

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CWC Caribbean business grows

February 11, 2016 by

CW flow hqStrong mobile growth in the Caribbean, 7 percent, was offset by a 9 percent decline in BTC, consistent with our expectations CWC PLC reported today. Mobile revenues (40 percent of total Group revenue) was up 1 percent in the third quarter the report stated.
Caribbean growth was driven by continued subscriber additions in Jamaica (+15 percent) where investment in our mobile network led to revenue growth of 16 percent, with data revenue up 72 percent. Broadband (13 percent of Group revenue) was 5 percent higher against the prior year, as subscriber growth in the Caribbean drove Group subscribers up 6 percent.
The company said that they are training new customer service agents for our new call centre in Jamaica which is expected to open in March quarter.
Regulatory approval for Liberty Global to acquire the entire share capital of CWC PLC is ongoing. It is expected that the Scheme Document to be dispatched by mid-March with completion in the second calendar quarter of 2016, as stated in the Offer Announcement.

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Expansion weights down Lasco Financial

February 5, 2016 by

Lasco FinLasco Financial Services reported lower profits for the quarter and nine months to December 2015. Net profit fell to $43.88 million in the quarter from $69 million in 2014, for the nine months profit fell to $158 million versus $181 million in 2014.
The company profit is now to taxes at 50 percent of the normal company’s tax rate.
Notwithstanding the fall in profits, third quarter revenues increased by $39 million or 19 percent over the corresponding 2014 period to $239 million and for the nine months, to $649 million, up 9.3 percent from $566 million in 2014.
Income from the company’s original source of business, increased by $31 million in the quarter. “All business lines grew the contribution to revenues; Remittance transactions and revenues continue to grow ahead of the industry and the Cambio and Loans divisions increased its transactions and revenues, following the expansion of the branch network. The increase in revenues from our new business lines and value added services resulted in Other Operating Income for the period growing by 100 percent to close the quarter at $14.4M” Managing Director Jacinth Hall-Tracey told shareholders in a report accompanying the results. For the nine months, the income was up by $79 million to $626 million, while other operating income grew to $33 million for the nine months, from $18.5 million and in the quarter, it rose from $7 million in 2014 to $14.4 million.
Nine months’ expenses increased 28 percent or $110M million resulting in a year to date operational profit of $164 million, 9 percent below the previous year’s $181 million. “We launched in September our first business loans branch and closed the quarter with three locations, two in Kingston and one in St. Catherine; two more will be opened in the first week of February. We also launched our Telecoms Division with the distribution deal for Huawei Smart Phones and wearable devices, rolling out eleven locations islandwide through our agent network. This investment impacted our expenses mainly due to a more than 50 percent increase in staff complement and the aggressive marketing support to launch the telecoms business launch the telecoms business,” Hall-Tracey advised shareholders.
Expenses for the quarter grew by 44 percent over the corresponding quarter to $189 million and from $385 million in the 2014 nine months period, to $495 million for an increase of 29 percent, much greater than the increase in revenues. Earnings per share is 13 cents for the nine months and should end around 18 cents for the year, but 2017 fiscal year should see a jump, as the expansion now underway starts to flow into profits.
The company’s stock closed trading on Friday at $4.25 at a PE of 23 times estimated March 2016 earnings.

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JSE pockets $110m from D&G trade

February 4, 2016 by

D&G adds $110m to JSE coffers

D&G adds $110m to JSE coffers

When 630,339,249 units of Desnoes and Geddes traded on the Jamaica Stock Exchange on Wednesday, carrying a value of $19,439,662,439, it resulted in the stock exchange boosting their already rich earnings in 2015, by added income of $110 million for 2016, from fees earned on this block of shares.
The JSE had their best year ever, in terms of earnings last year, as they picked up close to $120 million in fees, when Scotiabank switched their direct share ownership from Canada, to a company set up in the Caribbean, to hold all the shares of the Caribbean based entities.
Trading levels increased in each of the last three quarters last year, ending with the December quarter reaching $11.35 billion or 31 percent higher than the levels in the September quarter. For the year to date, regular trading levels are at $2.689 billion, up 79.6 percent from $1.497 billion for the similar period in 2015. The stock exchange has also increased some of its fees to investors and the brokers for 2016. In addition to the increased trading activity, the exchange in August last year started handling repo transactions, which is expected to enhance income for the full 2016 year as opposed to a few months last year.
The JSE stock has been trading in relatively high volumes, around the $20 range and closing on Thursday at $20 with just over 57,000 units.

Filed Under: Buy Rated, Company News, Feature Stories, JSE Main Market, Stock Market Tagged With: , ,

Berger Q3 profits up 26%

February 2, 2016 by

Berg logo .pngBerger Paints continue to enjoy an outstanding year, with an increase of 61 percent in after tax profit of $153.6 million from $95.3 in 2014 for the nine months period from on sales that rose 11 percent to $1.67 billion from $1.496 billion in 2014 and 12 percent in the December quarter to reach $759.4 million up from $678.5 million.
For the last and best quarter for revenues and profit, growth in profit after tax slowed to just 26 percent to hit $79.6 million, up from $63 million in 2014. Petroleum constitutes a major item of material into paint production and with the decline in oil prices on the world market, Berger should see a cut in cost that will help the profit margin.
The company generated operating cash flow of $193 million for the nine months compared to $147 million in 2014. Earnings per share for the quarter, is 37 cents and 51 cents for the nine months and is projected for the full year to be in the order of 65 cents.
One of the great attraction for the stock which is undervalued, is the high dividend payment that investors can expect, especially with strong gains in profit. The stock closed at $4 in trading in Tuesday, on the Jamaica Stock Exchange.

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$18.50 offer for H&L shares

February 2, 2016 by

H&LHardware & Lumber gets offer from the new majority shareholders Argyle Industries to buy for cash the 33,764,719 ordinary stock units not already owned by the offeror. The purchase price is J$18.50 per stock unit, the same price Grace Kennedy sold their majority holding to the company for in December last year.
On December 30 Argyle Industries Inc. announced that it had acquired approximately 58.23% of the issued stock units of H&L Shares. As a result of the Offeror acquiring over 50% of the issued ordinary stock units of the Company it became obliged under the Securities Act to make the offer to the minority.
The offer was received by the Hardware & Lumber board who advices, that a special subcommittee of the Audit Committee to comprise directors unconnected to Argyle or to any other significant shareholder of H&L will be appointed. This sub-committee will have a mandate to propose for adoption a recommendation as to acceptance or rejection of the Offer for inclusion in a directors’ circular to be issued by the Board containing all relevant information required for the benefit of H&L’s stockholders, in compliance with all regulatory requirements.

Rapid True Value owned by Hardware & Lumber

Rapid True Value owned by Hardware & Lumber

The closing date for acceptance March 4. Hardware and Lumber reported profit after tax for the nine-months ended September 2015 of $64 million, 43.2 percent less than the $113 million for the same period in 2014 from revenues that were up 2.3 percent to $5.373 billion.
Directors of Argle are Joseph Bogdanovich Director of Downsound Records and Director of K.L.E Group, Marcus Richards Managing Partner, Greystone Equity Partners Inc. and Christopher Bovell Attorney-at-Law.

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Q1 profit up at Jamaican Teas

February 2, 2016 by

Jamaican Teas DoorJamaican Teas quarterly results to December ended with profits after tax of $36.6 million or 22 cents per share, up 33 percent from $27.5 million in 2014. Profit before tax amounted to $42.5 million, is up from 54 percent from $27.5 million to $42.5 million.
The results came from revenues that grew by 22 percent to $387 million, with real estate sales accounting for $40 million and other income of $15 million which includes gain on sale of investments of $7.5 million.
Gross profit margin grew to 20.6 percent from 19.5 percent in 2014. Selling and marketing cost rose to $8.6 million from $7.3 million by 18.7 percent, administrative expenses was up $30 million from $25.5 million by 17.4 percent and finance cost grew by 76 percent to $10.9 million from $6.2 million.
Going forward interest cost should fall due to two factors. The company has a debenture that carries a variable rate tied to treasury bills, with the latter declining the company will see a reduction in the cost additionally the first phase of the real estate development will release cash to pay down bank borrowing.
There are signs that the economy is picking up and that should help in moving local sales at a faster pace than in 2015.
Based on the first quarter earnings, full year results could be in the region of 85 cents per share, but this could be affected by profit from sale of real estate units and depends on any added gains that may be realized from the sale of the $125 million investments portfolio.
At the end of the quarter borrowings were at $370 million with equity at $79s million. The stock which is quoted on the Jamaica Stock Exchange junior market last traded at $5.

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Barita reports improved profit

February 1, 2016 by

BaritaBarita Investments released the long delayed 2015 audited results to September today with profits of $242 million or 55 cents per share, up from $66 million in 2014.
In the final quarter, profit before tax amounted to $134.8 million and after taking a larger tax charge than usual, ended at $70 million but that is up from a loss of $90 million in pretax profit and a loss of $64 million after tax in the September 2014 quarter.
The results came from revenues comprising interest income of $891 million, a fall from $1 billion in 2014 but with a big final quarter with $275 million, other income amounting to $640 million of which gain on sale of investments accounted for $346 million, but fees and commission jumped 67 percent to $171 million. Net interest income fell to $265 million for the year from $395 million in 2014 but the net take ended with 29.7 percent margin compared with 30 percent in 2014 and with net interest income of $118 million in the final quarter with a margin of 43 percent. Ian McNaughton, Finance Director indicates that approximately 40 percent of the amount relates to prior quarters. that would result in the final quarters net interest income being around $70 million.
The pick up in the stock trading and growth in unit trust will result in increased fee income and capital gains from their holding of stocks with a value at $496 million at September.
Total assets amounted to $13 billion virtually the same as in 2014. The stock did not trade on Monday but last traded at $4.28 resulting in a PE of 7.8 but the first quarter results should be out by the February 5 based on when they were released last year. IC Insider is forecasting earnings around 75 cents per share for 2016 with the stock at a PE of 6 based on these forecasted earnings.

Filed Under: Buy Rated, Company News, Company Results