Eppley’s Profit up 31%, Q4 flat

Eppley is reporting a miniscule increase in profit after tax to reach $11.4 million for the December quarter and a 31 percent increase, to $51 million for 2014.
Epp 12-14The company that mainly does insurance premium financing, generated a 62 percent increase in revenues for the quarter to reach $43.8 million and a 68 percent increase for the year, landed revenues at $150.7 million.
Expenses were climbing much faster than income, with interest cost climbing 196 percent in the quarter, hitting $16.9 million and 194 percent increase for the year to end at $48.7 million. The increase in interest cost squeezed margins on lending sharply as new funding received in the last quarter was only partially used to generate high yields. Administrative cost climbed 51 percent in the quarter and 50 percent for the year.
At year end, cash funds not fully deployed amounted to $519 million up from $161 million at the end of 2013. Borrowing stood at $1.08 billion and equity at $343 million. A significant part of borrowings is quasi equity, in the form of preference shares, moving borrowings from $395 million at the end of September to what it ended at, in December. Amounts lent out totalled $843 million, up from $595 million in 2013 and $689 million at the end of September.
With the increased funding, Eppley should be able to increase business in 2015 and with that profits, as such earnings could be in the range of $100 per share for 2015. Earnings per share for 2014 ended at $64.19.
The stock is thinly traded and listed on the Jamaica Stock Exchange junior market and last traded at $380.

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  1. […] Eppley’s profit after tax increased 5 percent for the first nine months of the year to $41.7 million compared to $39.7 million in 2014. For the September quarter, profit jumped sharply by 91 percent to $19.3 million versus $10 million in 2014. Earnings per share of $52.47 was achieved for the nine months and $24.17 for the quarter. A dividend of $9 per share will be paid on November 30 to ordinary shareholders on record at November 20. Revenues grew 93 percent for the quarter to $63 million and 60 percent for the nine months period, to $171 million. Net interest income increased from 39.56 percent in the nine months to 43.9 percent in the quarter. Operating expenses climbed 16 percent for the quarter and 15 percent for the nine months. As of September, Eppley had a $1.38 billion portfolio consisting mainly of loans, leases and receivables. The average income yield of the portfolio was 14 percent, the company stated. Equity capital at the end of the quarter stood at $341 million and borrowing at $1 billion with average cost of debt being 10 percent. We ended the quarter with $237 million of cash and short-term investments, the company also stated. Eppley provides loan and insurance premium financing. At the end of the quarter, the stock that is listed on the junior market of the Jamaica Stock Exchange last traded at $380 much lower than the net asset value was $429 per share. […]

  2. […] with 15,000 shares changing hands with a rise of 50 cents to end at $7 for a 52 weeks’ high and Eppley 9.5% preference share, closed at $6 with 12,095 units […]

  3. […] Paramount Trading ended trading with 10,000 shares to end with an increase of 39 cents at $3.99. Eppley 9.5% preference share closed trading with 17,150 units and put on just 1 cent to $6.01 and the […]

  4. […] Bakeries traded 3,234 shares at 82 cents, Dolphin Cove had 10,000 shares trading at $2.70, Eppley traded just 221 units unchanged at $380, Knutsford Express closed unchanged at $6 with just 300 […]

  5. […] weeks high of $4.10 with a 50 cents gain, Access Financial Services trading 640 shares at $13.22, Eppley had only 246 shares trading to close at $380. General Accident had 708,434 units changing hands at […]

  6. […] to $1.07, Consolidated Bakeries concluding trading with 2,000 shares changing hands at 82 cents, Eppley 9.5% preference shares trading 11,694 units at $6. General Accident finishing trading with 22,470 shares […]

  7. […] Eppley Limited will be making a dividend of $37.19 per share payable on March 17, 2015 to ordinary shareholders on record as of March 10, 2015. The stock will trade X-dividend on March 6. The payment will bring the total dividend out of profit of 2014 of $46.19 providing a dividend yield of 12.15 percent per share based on the stock price of $380. The total dividend paid out of profit for the year, amounts to $36.77 million. The company paid a dividend of $9 per share on September 2, 2014. Eppley reported profit of $51 million or $64.19 per share for 2014, an increase over the $39 million for 2013. […]