The smallest of the three listed Lasco companies, Lasco Financial posted impressive results for the year ended March 2013. Revenues climbed 30 percent to $485 million and profits jumped 60 percent to $164 million. The net results is even more impressive considering that in 2012 there was net addition to profits coming from revaluation of a $90.3 million property which was partially offset by the write off of $$46.28 million for the full purchase costs incurred from the take over of Supreme Venture Financial Services MoneyGram operations, in December 2011.
Quarterly results | In the quarter to March 2013, revenue was $144 million versus $184 million but the latest quarter figures are better than the $132 million generated in the December 2012 quarter. The revaluation gain was booked in the March 2012 quarter thus swelling the revenue figure in the period.
The quarterly profit for March was also down compared to 2012. More importantly, the $52 million earned in the last quarter of the 2013 financial year was just $2.5 million less than that earned in the high-earning December 2012 quarter.
Cost has been kept under control with a slight dip in administrative cost, most of that would relate to the removal of the one-off cost of $46 million reflected above. Selling and promotional cost were up by half to reach $152 million but the growth was much slower than the rise in trading revenues of 73 percent.
Business lines | The company is involved primarily in the business of cambio operations, money transfer and lending. It has a ready market for the foreign currencies that it purchases which it can sell to the other companies within the family.
Much of last year’s growth came from the acquisition of the business purchased. Operations have been extended to Barbados but it will take hard work to come close to repeating the 2013 performance.
The capital base is $475 million with total assets of $640 million and enjoys return on equity of a strong 39 percent and a gross profit margin of 34 percent.
The stock | This company seems to be coming into its own and investors have noticed. The stocks has gained 100 percent since December last year, when it traded at $4.90 and closing on Friday at $9.80. The results were released after trading closed on Friday. The other two Lasco companies are trading around 10 times 2013 earnings and if this company does the same it should be trading around $13 this coming week. The PE is currently 7.5 and the share price to book 2.6 times. The company, which is not subject to taxation on profits for another three years, should report around $1.70 per share for the 2013/14 year.
[…] grew 60 percent for the year to March this year, in 2012 it grew by 244 percent, helped by revaluation surplus on investment property that was […]