Jamaica’s Cable & Wireless seems to be making head ways with continued growth in some segment of the business but saw a small fall in their mobile customer base from June to September.
According to data provided by Liberty Global quarterly report, their Jamaican operations saw fixed lines rose 1,300 to 262,500 in September than at the end of June, internet grew by 5,500 customers to 153,700, Telephony subscribers moved by 10,400 to 206,600 customers but mobile customers fell 3,400 to 930,500.
What has not been mentioned, is that the local company introduced a series of rate increases starting in August 16th as their customers started paying sharp increases for calling to most overseas destinations, with calls to the United States, United Kingdom, China, India and Spain by up to fifty percent. Customers with the FamUltra, Post-Paid plan, will pay up to 50 percent more. Other affected packages will see increases of up to a third of their current charge prior to the increase. Subsequently, the company implemented increases of 6 to 10 percent on some landline services effective October local rates moved from 99 cents to $1.05 6 perform Call to Digicel line moved from $2.40 to $2.55 and other local operators fixed lines USS Canada and UK landlines moved from $10 to $11.
Cable & Wireless rose 4 cents to $1.07 on the Jamaica Stock Exchange on Wednesday.
More business for Cable & Wireless
Profit rise and fall at Mayberry

Mayberry crossed 40m C&W shares.
Profit at Mayberry Investments climbed 27 percent to $62 million, after tax for the quarter to September this year, up from $49 million in 2016 with earnings per share of just 5 cents. For the nine months to September, profit dropped to $66 million from $320 million in 2016.
While the profit performance for the year to date is mixed, the investment banker focus is the more robust comprehensive income, than the traditional profit outcome, but total comprehensive income slipped 22 percent, to $300 million, from $385 million, for the September quarter of 2016, due to a decline in the prices of some stocks held. Not factored into comprehensive income is the increased value of associated company share prices.
Net interest income climbed 28 percent to $30 million. Fees and commissions jumped 168 percent to $113 million for the quarter, compared to $42 million for the corresponding quarter in 2016. Fee income grew by increased transactions within the quarter and from Initial Public Offering whilst the increase in Net Interest Income was due to lower cost of funds. Dividend income declined 17 percent to $29 million, a reduction of $6 million compared to the similar period in 2016.

Gary Peart, Chief Executive of Mayberry Investments.
Net trading Gains fell to $68 million from $117 million for the corresponding period in 2016, a reduction of $49 million or 42 percent, due to decreased trading volumes for the quarter.
Net foreign exchange gains fell sharply to a mere $4 million, down from $58 million in 2016. Unrealized gains on investment revaluation amounted to $11 million or 37.6 percent less than the comparative period in 2016.
Operating expenses decreased by $34 million or 12.28 percent when compared to the corresponding quarter in 2016, with staff cost falling $21 million and investment impairment fell $29 million to zero. Profits from associates, increased $34 million or 199 percent, over the same quarter in 2016
Results for the nine months for 2017 is not as robust as in 2016. Net interest income is down from $135 million to only $52 million as interest cost rose by $68 million and income fell. Fees and commission income rose sharply from $142 million to $253 million, net trading gains fell from $385 million to $152 million and foreign exchange trading gains fell from $179 million to $57 million and unrealized investment gains fell to $44 million from $199 million.
The final quarter of the year is off to a robust start with a number of stocks Mayberry holds climbing these include NCB Financial, Caribbean Cement Cable & wireless to name a few. Longer term the company’s equity portfolio should rise sharply as all indicators point to a possible 60 percent rise in value of main market stocks over the next year.
Mayberry ended the quarter with total assets of $22 billion and shareholders’ equity of $7.9 billion, up from $7.24 billion at the end of 2016. Net book value stands at $6.54. The company’s stock closed trading on the Jamaica Stock Exchange at $4.30, on Wednesday.
Appalling corporate action
Monetgo Freeport was previously listed on the Jamaica Stock Exchange but dumb politically appointed directors made a stupid decision to have the company delisted on the basis that it would save money and the assets would be sold off and the company liquidated.
Several years have so far elapsed and the company is yet to be wound up but the more than 1,600 shareholders cannot trade their shares as there is no organized market to do so, thanks to the poor decision made by former board members, but the current board don’t seem to be leading the company any better than the previous one.
The company has $327 million worth of property being held for sale so it will be some time for the winding up to take place. Amounts held on deposit for the purchase of property is $399 million, backed by funds held in escrow. The current board rather than pay more dividend from the excess cash the company holds, is recommending that no payment be made, another poor decision. The funds have not been invested for maximum returns, as they just sit in bank deposits earning under 6 percent interest per annum and now even less with fall in interest rates, being paid on deposits. That makes no sense, when there are other assets that could enhance shareholder’s value.
Freeport should be returned to the Stock Exchange with a new mandate and UDC could cash out their shares by the company buying them back.
The financial statement up to March this year, shows profit of $10.5 million down from $45 million in 2016 with income falling in 2017 to $40 million from $92 million in 2016.
The question to be answered is why would a company that is virtually inactive need to have 10 directors that is another indication of poor management. There seems no need to be more than 6 but the company needs to have management refocus their attention in a different direction than they are current on.
Knutsford Express revving up

One of Knutsford Express buses.
Jamaica’s intra island transport company, Knutsford Express, is enjoying extraordinary times, with a sharp increase in revenues and profits but the company’s management is not sitting on their laurels as they actively seek areas for future growth and profits.
In the latest quarter to August, revenues jumped a strong 37 percent, to $237 million and spawned a 57 percent rise in profit of $57 million. Of interest is the continued growth, on top of previous year’s increases. For while revenues in the August 2016 quarter rose 21 percent with flat profit, by the second quarter revenues climbed 37 percent over the 2015 levels, to $176 million and profit rose 19 percent to $30 million.
Revenues rose 33 percent for the third quarter to $203 million and profit almost doubled to $53.7 million, thanks partially to an $8.5 million gain on sale of fixed assets. Excluding the one off gain, profit would be up 63 percent for the quarter. Expenses increased 25 percent, quite a bit slower than revenues, helping in the growth in profit. Knutsford, unfortunately does not break out direct operating expenses from administration cost but data shows that certain direct cost not counting labour cost, to be around a third of revenues. Increased revenues would have added close to 50 percent of the increase in overall cost.

Knutsford’s New Kingston depot
By the end of 2017 fiscal year revenues climbed 29 percent over 2016 and profit by 28 percent, just below the 35 percent increase for the nine months to February. Operating revenues for the last quarter of the just concluded fiscal year was in line with the amount generated in the third quarter.
When the company went public, it had 54 employees in 2013, up from 47 in the previous year, climbing to 100 by May 2016, and remaining there to May this year, resulting in some economies of scale.
IC Insider.com is forecasting revenues to pass the $1 billion mark for the first time, by the end of the fiscal year with profits ended up around $280 million or 50 cents per share, with the next fiscal year’s earnings hitting 90 cents per share. The stock trades on the Junior Market of the Jamaica Stock Exchange around $15 with a PE ratio of 27 and 16 times 2019 earnings versus 14 for the market currently.
Knutsford generated $73 million in cash flow for the quarter and expended $69 million on the acquisition of fixed assets to end up with $85 million in cash and bank balances and investments $92 million. The company owes $55 million in loans and boast net worth of $539 million.
The JSE All Jamaican Composite Index declined by 2,335.17 points to close at 319,134.35 on Wednesday as the JSE Index declined by 2,127.60 points to close at 290,767.49 and the JSE US dollar Index rose 0.43 points to 185.70.
In contrast, October closed with average of 1,185,251 units valued at $16,528,582 for each security traded.
JMMB Group traded $1.95 higher to close at a 52 weeks’ high of $29.70, with 11,000 units, Mayberry Investments concluded trading at $4.30, with 4,000 shares, NCB Financial Group lost 99 cents and ended at $106.01, with 317,087 shares, 138 Student Living ended trading 10 cents higher at $5.50, with 1,400,000 stock units, PanJam Investment settled 40 cents higher at $42, with 173,919 stock units, Pulse Investments settled with a loss of 1 cent at $1.96, with 6,500 shares, Radio Jamaica settled at $1.15, with 21,330 units, Sagicor Group concluded trading 5 cents higher at $38.05, with 57,923 units, Sagicor Real Estate Fund ended trading 6 cents higher at $14.20, with 6,544 shares, Scotia Group closed 1 cent higher at $50.51, with 4,000 units and Supreme Ventures finished at $11.80, with 42,564 shares. In the main market preference segment, Jamaica Money Market Brokers traded at $1.85, with 67,869 units, JMMB Group ended at $1.15, with 2,000 stock units and in the US dollar market Productivity Business Solutions traded 598 units and rose 0.50 cent to 58 US cents.
In 2015, West Indies Synthetics Company Ltd (WISYNCO) celebrated 50 years of operations by early 2018 the company is set to celebrate another milestone, as the third Mahfood majority owned company to be listed on the Jamaican Stock Exchange. 

Trading on the Main and US dollar markets of the Jamaica Stock Exchange finished on Tuesday with 26 securities changing hands, 7 advanced, 13 declined and 6 traded firm as the main market indices dropped.
The average of 328,936 units changed hands for an average of $3,720,562, in contrast to 99,699 units for an average of $1,279,493 on Monday. The average volume and value for the month to date amounts to 1,185,251 units valued at $16,528,582 and 1,228,254 units valued at $17,171,780, previously. In contrast, September closed with average of $283,480 units at $3,630,990 for each security traded.
traded with a loss of $1 at $38, with 46,295 shares, Sagicor Real Estate Fund finished with a loss of 26 cents at $14.14, with 20,818 units, Scotia Group finished with a loss of $1.50 at $50.50, with 112,944 stock units, Seprod ended with a loss of $2 at $28, with 3,800 shares and Supreme Ventures finished with a loss of 20 cents at $11.80, as 237,350 units traded. In the main market preference segment, Jamaica Money Market Brokers 7.5% concluded trading at $1.85, with 2,769,878 shares, JMMB Group 7.5% concluded trading 4 cents higher at $1.15, with 198,200 units. In the US dollar market Proven Investments rose 0.49 US cents in trading 415,521 ordinary shares at 23.99 US cents and Productivity Business traded 15,881 US dollar denominated ordinary shares at 57.5 US cents and JMMB Group 6% US dollar preference share traded 6,300 units at $1.12.
Sharp gains in the prices of
Berger Paints fell $1 to end at $16, with 55,939 stock units trading, Cable & Wireless ended trading with a loss of 3 cents at $1.03, after trading 372,654 units, Caribbean Cement traded 85 cents higher at $36.95, with 27,939 shares, Carreras concluded trading at $11.50, with 323,179 stock units. Grace Kennedy traded 17 cents higher at $43, with 3,100 shares, Jamaica Broilers closed 44 cents higher at $18.50, with 84,500 stock units, Jamaica Producers ended trading at $16, with 12,221 units, JMMB Group closed 10 cents higher at a new closing high of $28.10, with 177,182 shares, after it traded at a new intraday high of $29.99 in early trading activities. Kingston Wharves settled at $33, with 2,980 stock units, a $3 jump in the price of
NCB Financial pushed it to a record close of $108 while trading 25,163 shares, PanJam Investment climbed $1.99 to $44, with 2,000 shares, Radio Jamaica ended trading 526,148 stock units at $1.15, Sagicor Group closed at $39, with 30,015 stock units, Sagicor Real Estate Fund ended trading with a loss of 10 cents at $14.40, with 8,498 shares, Scotia Group traded $2 higher at $52, with 107,093 shares, Seprod finished trading at $30, with 3,884 shares and Supreme Ventures settled at $12, with 161,330 shares. In the main market preference segment, Jamaica Money Market Brokers finished trading with a loss of 5 cents at $1.85, with 14,454 shares, JMMB Group settled 1 cent higher at $1.11, with 54,700 stock units changing hands and 8,700 units of JMMB 6% US dollar preference shares traded with a gain of 2 cents at US$1.12.
It was another day of records on the Main Market of the Jamaica Stock Exchange on Monday. The JSE All Jamaican Composite Index advanced by 2,606.73 points to close at a record 323,606.90 and the JSE Index advanced by 2,375.03 points for a fresh record close of 294,842.48.