Acquisition

Grace up stakes in Spur Tree Spices

April 18, 2024 by IC Insider.com Leave a Comment

The GraceKennedy a wholly owned subsidiary – GK Investments Limited, purchased 60,000,000 units of shares in Spur Tree Spices thereby increasing its ownership to 20.18 percent. this was the objective Grace had before the company went public.
On Wednesday Spur Tree reported that two directors sold 30 million units each, which seems to have met the demand from Grace, but it may not be the last of the big trades for the company whose products have strong appeal internationally.
The company has been struggling to grow its profit since listing on the Junior Market in 2022. Profit of $116 million fell to $88 million in 2023, with earnings per share of 5 cents last year and 7 cents in 2022.

Spur Three stock traded at $2.42, up 2 cents on the junior Market of the Jamaica Stock Exchange on Thursday.

More expansion coming for Dolla Financial

May 7, 2023 by IC Insider.com

Dolla Financial reported record profit for the 2023 first quarter that jumped 90 percent to $125 million before tax, from just $66 million last year, with aftertax profit coming in at $123 million, 128 percent higher than the $59 million reported for 2022, but the company is not satisfied, with that and plans increased borrowing to on lend and acquisition while having eyes on branch expansion.
The company borrowed $1.17 million in 2022 but used most of the available funds on hand at the start of the year, with loans granted to borrowers absorbing $550 million in the March quarter, leaving the company with just $117 million in cash funds. In order to maintain the current profit momentum the company will need to add new loans from lenders to keep funding the expansion.
In an investor briefing, the CEO Kadeem Mairs indicated that they are in the process of negotiating a US$7 million loan that will be used to fund loan expansion and acquisition that they are currently looking at. Such acquisitions will be subject to regulatory approval before they will be able to complete such transactions.
The company is also seeking to establish an 800 square foot branch in May Pen in the complex that houses the supermarket operated by Derrimon Trading.
Importantly, Mairs pointed out that 80 percent of loans granted are secured and therefore result in a low credit default.
IC Insider.com forecast is for the 2023 earnings per share to be 40 cents and is partially predicated on timely loan funding.

Filed Under: Buy Rated, Company News, Company Results, General Business News Tagged With: Acquisition, Branch expansion, Dolla Financial, Emerging markets, ICBuyrated, Jamaica Stock Exchange, junior market

SOS buys printing press, set for record profits

June 8, 2022 by IC Insider.com

Stationery & Office Supplies announced the acquisition of assets of D&K’s Printing and Office Supplies including 10 additional book manufacturing machines effective, Monday, June 6, 2022.

Stationery & Office Supplies is back in the TOP 10 but could fall in prive this week before moving higher.

The purchase will diversify the product range and increase the manufacturing capacity of the range of products produced by SEEK. Seek which was acquired in April 2018 produces exercise and hardcover books steno books and binder refills. The acquisition will allow them to print books with working in them such as receipts books, invoice books, graph paper and notebooks. In short, it expands the range of products that it can now print, some of which it currently sells which will improve profit margins.
The acquisition which is expected to contribute some 20-25 percent to Seek’s revenues, ICInsder.com gleaned and continues the process of acquiring strategic assets or businesses to accelerate business growth and will add 12 employees to the printing operation.
In 2021 revenues from the book manufacturing were $48 million and in 2019, some $62 million which is expected to hit around $80 million in 2022 and should reach into the $100 million range in 2023.
Revenues seem to be back to normal with January 2019 generating revenues of $344 million that were overtaken this year and June 2019 being $295 million which seems set to be exceeded in the June quarter as well. Based on the acquisition which will add to revenues and profit and the expected continuation of the robust first quarter revenue growth of 36 percent. Revenues for the rest of the year could accelerate, with the economy opening up since the first quarter.
The company gave a glimpse of what the rest of the year could be like, with SOS setting a new record for monthly sales, of $140 million in February, with sales reaching $173 million in March, 25 percent higher than February. If the trend continues into the second quarter, revenues could reach $480 million and may well continue the acceleration to the end of the year.
ICIinsider.com has upgraded earnings to $1.70 excluding the $23 million gain on the sale of property in the first quarter and that would put the stock at a PE well under 10 times this year’s earnings, assuming no major negative developments that could impair revenues and profits.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Acquisition, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, junior market, SOS, Stationery and Office Supplies

JMMB in expansion mode

March 24, 2014 by IC Insider.com

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Jamaica Money Market Brokers (JMMB) has advised through its Trinidadian subsidiary, JMMB Investments (Trinidad and Tobago), that it received the approval of regulators for the acquisition of AIC Securities, a securities dealer and stockbroker headquartered in Trinidad. JMMB will now move to complete the transaction, which upon successful completion, will see it acquiring 100% of AIC Securities, a member of the AIC Financial Group Limited.

The Report out of Trinidad indicates that JMMB Group’s CEO Keith Duncan at an investors briefing “articulated that the Group continues to position itself as an integrated financial services provider with its regional expansion marked by the impending opening of JMMB Investments TT, its ownership of IBL Bank, alongside a pending bank acquisition in the Dominican Republic and the improved performance of the JMMB Merchant Bank in Jamaica.”

It should be noted that Michael Lee-Chin is the Chairman of AIC Financial Group Limited. In 2012, NCB Capital Markets had previously acquired AIC Finance, a merchant bank that operates in Trinidad.

AIC Securities offers portfolio management, investment advisory, and stock brokerage services, and is a member of the Trinidad & Tobago Stock Exchange.

JMMB is an IC Insider Buy Rated Stock.