Profit at Lasco Financial jumped a noticeable 50 percent, in the December 2014 quarter, on rising revenues of 11 percent. The company recorded profit of $68 million in the quarter versus $46 million in 2013 and recorded a 33 percent rise in its nine profit to $181 million from $136 million.
Lasco reported improvement in gross profit margin of 152 percent, in the December quarter, from 108 percent in the same period in 2013, the margin, year to December, is 155 percent from 137 percent in the nine months of 2013. Administrative expense rose by 8 percent for the quarter and 13 percent year to December while marketing expenses fell 8 percent in the quarter but was up 9 percent year to date, compared with the prior year, but still below the rise in revenues.
Earnings per share for the quarter amounted to 6 cents and for the nine months 15 cents. Earnings for the full year to March should end up around 20 cents per share. The stock now priced at $1, remains a buy, with prospects for increased profits for 2015/16.
The company is listed on the Jamaica Stock Exchange junior market and is primarily involved in cambio and money transfer and has with equity of $795 million no debt, and cash funds of $502 million.
Lasco Financial profit up 50%
Trackbacks
-
[…] Lasco Financial closed at a new 52 weeks’ high of $1.50, the day after Mayberry bough their holdings in the company to 20 percent. At the close, Lasco Financial had no stocks on offer while there were 20,000 units on the bid at $1.25. The Junior Market ended with 11 securities trading resulting in 1,986,233 units changing hands valued at $2,961,054. The JSE Junior Market Index gained 12.29 points to close at 868.72, with the price of 4 stocks advancing and 4 declining. At the close of the market, there were 4 stocks with bids higher than their last selling prices and only 1 with a lower offer. The junior market ended with 3 securities closing with no bids to buy and 10 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Access Financial Services trading just 749 shares to close with the price unchanged at $17. AMG Packaging ending with 1,200 shares changing hands, 6 cents lower, at $3.19, Blue Power closed with 14,796 shares trading at $9.50, Caribbean Cream finished with 380,000 units to close with a gain of 2 cents at $1.10. Caribbean Producers with 1,000 shares trading closed lower by 1 cent at $2.99. Dolphin Cove finished trading with 6,434 units as the price remained unchanged at $10, General Accident Insurance concluded trading with 24,934 shares changing hands, 6 cents lower at $2.04, KLE Group traded at a new low of 75 cents while dropping 24 cents, with 100,000 units trading. Lasco Distributors traded 300,268 units at $1.60 to gain 5 cents, Lasco Financial Services traded 1,119,279 shares at a new 52 weeks’ high of $1.50, to gain 20 cents and Lasco Manufacturing traded 37,573 units with a gain of 2 cents to $1.27. […]
-
[…] 3,437 shares unchanged at $6. Lasco Distributors traded 289,032 shares, 15 cents lower, at $1.55, Lasco Financial Services finished trading with 244508476 units in total between $1.28 and $1.45 to settle at $1.30, there […]
-
[…] Jamaican Teas traded 194,500 at $3, Lasco Distributors traded 1,100 shares unchanged at $1.65, Lasco Financial Services finished trading with 15,000 units, the price remained at $1.31 and there was dealing in 18,304 […]
-
[…] and lost 25 cents to $2.65, Lasco Distributors traded 89,880 shares and dropped 20 cents to $1.50, Lasco Financial Services finished trading with 62,331 units, the price slipped 10 cents to $1.35. There was dealing in 9,629 […]
-
[…] trading at $6. Lasco Distributors ended with 227,498 shares trading, 1 cent higher, at $1.50, Lasco Financial Services finished trading with 55,531 units, the price slipped 7 cents to $1.37 and Lasco Manufacturing […]
-
[…] Distributors had 523,076 shares trading to close at $1.45 with no stock on offer at the close. Lasco Financial Services had 3,500 units changing hands traded at the close at $1.30, Lasco Manufacturing traded 821,444 […]
-
[…] million. .The bid for the stock is 66 cents versus the last price of 65 cents. Caribbean Flavours, Lasco Financial, Lasco Manufacturing and Medical Disposables all have bids higher than the last selling prices. The […]
-
[…] 11 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Lasco Financial Services putting on a cent while trading 12,000 shares at $1.09.There were 144,031 shares of Paramount […]
-
[…] are, Access Financial finishing trading with 10,310 units as the price gained 29 cents to $10, Lasco Financial with 49,804 shares changing hands, 2 cents higher to $1.07, Consolidated Bakeries concluding trading […]
-
[…] Flavours & Fragrances gaining 6 cents to end at $1.91 as 40,000 shares changed hands and Lasco Financial Services with 16,000 shares ending unchanged at […]
-
[…] 5 securities that had no stocks being offered for sale. Stocks trading in the junior market are, Lasco Financial ending with 156,000 units to close with a gain of 1 cent at $1.06, General Accident while dealing in […]
-
[…] $8.99, Lasco Distributors concluding trading with 24,716 shares, the price jumped 4 cents to $1.50, Lasco Financial closing with 28,289 shares while gaining 10 cents to $1.20. Blue Power traded 100,000 shares but […]
-
[…] buy and 6 securities had no stocks being offered for sale. Stocks trading in the junior market are, Lasco Financial closed with 275,700 shares trading lower by 11 cents to $1.04 Caribbean Producers closed with 15,202 […]
-
[…] to close at an all-time high of $4, Blue Power ended trading with 2,350 shares trading at $6.50, Lasco Financial ending with 14,798 shares changing hands at $1.15, Derrimon Trading had 100 shares trading at $2.04, […]
-
[…] cents to $2.30, Lasco Distributors closing with 10,000 shares, the price gained 2 cents to $1.48, Lasco Financial finishing trading with 17,802 shares, to end with an increase of 9 cents at $1.15. Lasco […]
-
[…] to close at $2.55, Lasco Distributors traded 46,000 shares and closed with 1 cent gain at $1.41, Lasco Financial stock gained a cent with 55,000 shares, to end at $1.06, Lasco Manufacturing with 465,462 shares […]
-
[…] at 90 cents, Lasco Distributors finished trading with 810 shares while gaining 10 cents to $1.40, Lasco Financial ended with 65,774 units trading, to end at $1.05. Lasco Manufacturing concluded transactions in […]
[…] Lasco Financial Services reported profit of $191 million or EPS of 15.5 cents for the March 2015 year, an improvement of 8 percent over the $177 million made in 2014. The last quarter was poor with only $10 million in profit, down sharply from $41 million made in 2014, due to a combination of developments. Revenue for the last quarter hardly grew, ending at $148 million versus $145 million in the 2014 quarter while expenses grew by $28 million due mainly to increased spend on marketing and selling expenses. Jacinth Hall-Tracey, Managing director indicated that the period suffered from squeezed margins on foreign exchange trading and foreign exchange losses in the quarter, resulting from the revaluation of the Jamaican dollar and greater stability of the exchange rate. Loan disbursements slowed as credit rating data used in assessing potential clients resulted in lower loan approvals. The PE ratio of the stock is 13 based on the last reported earnings, normally the ratio would not be that high. Mayberry’s acquisition of 20 percent of the company’s shares has changed the dynamics and remove some supply from the market. The company has cash of $500 million and is generating over $200 million per year. If the company can find the formula to ramp up good quality lending successfully, the profit outlook can be transformed considerably with high profit margins for lending. “We are working on a number of initiatives that will help in the transition from lower income in foreign exchange activity” Hall-Tracey said. The area of credit approval is one that they is being revisited as the use of credit rating information is stymying lending. But Hall-Tracey expects profit for this year that ends March 2016 to be higher than for the year just ended, subject to taxes on profit which the company will start bearing at fifty percent of the official tax rate of 25 percent. The equity capital of Lasco is $812 million and is well below that of its two siblings who have equity in equity of more than $2.4 billion each. The company has done well from the money remittance and cambio operations but it is in the lending that the future growth prospects seems to rest. Hence the connection between Mayberry with the know-how having been exposed at Access Financial. The company has the free capital to increase lending with only $147 million in loans at March. […]