junior market — Page 131

Financials & entertainers join IC TOP 10

October 13, 2019 by IC Insider.com

Scotia Group joins IC TOP 10

The past week saw declines in the markets with the main market falling on each trading day while the Junior Market was up and down. Against that background, three new listings made it to the TOP 10 lists.
Buy Rated Junior Market stocks have two new entrants this week with Dolphin Cove price dropping to $9 and Access Financial trading at $35 joining the list while Honey Bun with the price rising to $6.50 and CAC2000 that rose to $13.50 exiting the top listing. Scotia Group dropped back to $57.10 from $61.50 at the end of the previous week and returns to the main market TOP 10 list at the expense of Stanley Motta.
Market activity resulted in no change to the top three Junior Market stocks, leaving Caribbean Producers

with projected gains of 240 percent as the leader, followed by Iron Rock Insurance with potential gains of 201 percent and Medical Disposables with 186 percent.
Radio Jamaica (RJR) share price that slipped during the previous week to a low of $1.35 and closed that week at $1.60, climbed further this past week with increased investors’ interest that pushed the price to $1.80 with projected gains to 213 percent, to remain the leading main market stock. Carreras sits at the number two spot with likely gains of 125 percent and Jamaica Broilers with projected gains of 100 percent is next. Berger Paints slipped to the fourth spot with a downward revision of earnings to $1.80 for the year.
The main market, closed the week with the overall PE of 17.2, inching up from 17.1 for the previous week and the Junior Market remaining unchanged at 11.1 based on current year’s earnings.

The PE ratio for Junior Market Top 10 stocks average remains at 7.7 and the main market PE at 11.1, up from 10.4 at the close of the previous week.
The TOP 10 stocks now trade at a discount of 31 percent to the average for the Junior Market stocks and main market stocks trade at a discount of 36 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with

the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, Express Catering, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Main Event, Medical Disposables, Radio Jamaica, Scotia Group, Seprod, Stanley Motta, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

Bun & Teas in IC TOP 10 BUY RATED

October 5, 2019 by IC Insider.com

Buy Rated Junior Market stocks have two new entrants this week with Honey Bun and Jamaican Teas returning to the top listing. Both companies’ fiscal year ended September, with earnings for the 2020 fiscal year, used in valuing them.
The new listings are expected to benefit from growth in the core business, with Honey Bun continuing to benefit above the norm from the expansion of the factory late last year and new products being manufactured while Jamaican Teas could benefit from investment gains from the portfolio of QWI Investments.
Dropping from the Junior Market TOP 10 are Elite Diagnostic and Express Catering. There were no changes to the main market TOP 10.
Market activity, left Caribbean Producers with projected gains of 240 percent as the leading Junior Market stock with likely gains, followed by Iron Rock Insurance with potential gains of 204 percent and Medical Disposables with projected gains of 184 percent.
Radio Jamaica (RJR) share price slipped during the week to a low of $1.35 but bounced to close the week at $1.60, pushing projected gains to 213 percent, to remain the leading main market stock. RJR is benefiting from increasing revenues, resulting from a more buoyant economy, the rollout of new services, the signing of an agreement with Flow that will add to revenues without the added cost and lower costs in a number of areas, with more to come. Carreras sits at the number two spot with projected gains of 125 percent with the price slipping a bit during the week and Berger Paints with projected gains of 115 percent in next.
The main market, closed the week with the overall PE of 17.1 down from 17.7 the previous week and the Junior Market is at 11.1 from 11.7 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.7 compared to 7.9 the previous week and the main market PE remains at 10.4.
The TOP 10 stocks now trade at an average discount of 31 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, Express Catering, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Main Event, Medical Disposables, QWI Investments, Radio Jamaica, Seprod, Stanley Motta, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

IC TOP 10 focus on QWI

September 30, 2019 by IC Insider.com

Attention by investors seems set to be focused on QWI Investments, which commences trading on Monday, but being the end of the month, investors could be seeing other stocks recording interesting movements.
Buy Rated stocks had few changes with Elite Diagnostic and Express Catering climbing back into the Junior Market TOP 10 with the price of Elite dropping to $5.40 from $5.60 at the end of the previous week while Seprod returns to the main market list at the expense of Scotia Group.
Slipping out of the IC TOP 10 listing is Jetcon Corporation that remained at $1.80, Main Event earnings were adjusted down with the decline of profit reported in the July quarter due to increased cost that exceeded revenues and Scotia Group rose to $60 from $57.50 and dropped out of the TOP 10.
Market activity, resulted in Caribbean Producers with projected gains of 244 percent being the leading Junior Market stock with potential gains, followed by Iron Rock with likely gains of 200 percent and Medical Disposables with projected gains of 186 percent.
Radio Jamaica closed the week with projected gains of 194 percent as the leading main market stock with the price falling to $1.70 from $1.90 during the week. Berger Paints sits at the number two spot with projected gains of 132 percent as more interest comes in for this stock coupled with reduced selling ahead of the most important quarter coming up when sales exceed all other quarters and Carreras with projected gains of 112 percent.
The main market closed the week with the overall PE of 17.7 up from 16.7 the previous week and the Junior Market is up to 11.7 from 11.3 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.9 compared to 7.8 the previous week and the main market PE remains at 10.4. These levels of PE ratios point to big upside for TOP 10 stocks.
The TOP 10 stocks now trade at an average discount of 32 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 41 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, Express Catering, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Main Event, Medical Disposables, QWI Investments, Radio Jamaica, Scotia Group, Seprod, Stanley Motta, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

Increased cost stunts Main Event’s profit

September 27, 2019 by IC Insider.com

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Main Event revenues growing nicely profit stalls.

Sales climbed 29 percent for the quarter to $469 million from $364 million in 2018 but increased cost melted away the revenue gains leaving 40 percent less profit in the July quarter at $15 million, down from $25 million reported in 2018 for Main Event.
The third quarter’s performance is in stark contrast to the second-quarter performance. With $31 million lower revenues, profit in the April 2019 quarter was $62 million, well up on the July quarter’s outcome.
The company, an entertainment production and planning agent, recorded a strong 28 percent growth in revenues for the nine months to July of $1.36 billion, up from $1.07 billion in 2018. Very little of the increased income percolated into more profit for the nine months to July, as profit increased slightly by 2 percent to $108 million from $105 million in 2018.
The strong increase revenue is attributed to the company’s focus on diversifying its income stream that includes M-Style experience that focuses on the wedding market, expansion to the western end of the island and M Academy project, the company directors advised investors.
Gross profit margin in the nine-month period fell to 44 percent from 48 percent in 2018 and was also down in the July quarter by 42 percent, from 45 percent in 2018. Direct expenses climbed 37 percent in the nine months ending July to $761 million from $556 million in 2018, and by 36 percent in the quarter ending July to $271 million from $200 million. Gross profit rose slower than revenues by 21 percent in the quarter to $198 million from $164 million but increased 18 percent for the year to date to $604 million from $510 million in 2018.

Three directors of Main Event, including the mentor who is responsible to ensure compliance with the JSE rules.

Operating and administrative expenses rose a sharp 35 percent to $182 million in the quarter and 25 percent in the nine months to $492 million. Finance cost declined in the quarter to $8 million from $5 million in 2018 and from $14 million to $18 million for the nine-month period. “We have taken note of increased prices in third party inputs and increased inefficiency internally”, the directors indicated.
Gross cash flow from operating activities brought in $213 million, payables of $146 million and dividends of $18 million. At the end of July, shareholders’ equity was $631 million, long term loans of $139 million, net current assets ended the period at $470 billion inclusive of receivables of $375 million, cash and bank balances of $50 million and current liabilities of $240 million.
Earnings per share came out at 4 cents for the quarter and 36 cents for the nine months. IC Insider.com is forecasting 40 cents per share for PE of 14 times earnings, importantly, with the 2019 fiscal year ending in October investors should be looking at the 2020 results to deliver increased profits and stock price appreciation. Continued strong top-line growth and implementation of cost control measures will enhance gains in 2020 and should see earnings hitting 85 cents per share for a PE of 7. The shares are listed on the Junior Market of the Jamaica Stock Exchange and last traded at $5.72.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging market, Jamaica Stock Exchange, junior market, Main Event Entertainment

IC TOP 10 relatively stable

September 22, 2019 by IC Insider.com

Jamaica Broilers announced a new acquisition last week

The Jamaica stock market was impacted last week by fresh share insurances and acquisitions by two IC TOP 10 listed companies.
Investors’ attention was on pumping funds into Barita Investments’ rights issue and QWI Investments’ initial public offering in the past week and led to more muted market activity, with the latter attracting more than 4,000 investors and in excess of $1.5 billion.
Other major developments in the past week were the announcement that TOP 10 BUY RATED General Accident picked up 55 percent of the Trinidad based Motor One Insurance company but investors hardly seem to notice. Another Top 10 listing, Jamaica Broilers announced yet another takeover of a poultry processing plant in the USA. Market activity in the coming week will be further affected with Proven Investments selling half of their holdings in Access Financial stock by way of a public offer, at an attractive price of $32 each. Market conditions resulted in just two changes to IC TOP 10 BUY RATED list as CAC 2000 returned to the top 10 Junior Market list, replacing Caribbean Cream and Scotia Group moved back into the main market listing at the expense of Seprod.
Changes in prices left Caribbean Producers with projected gains of 233 percent, followed Iron Rock by with likely gains of 201 percent and tTech with projected gains of 167 percent as the three most attractive Junior Market stocks.
Radio Jamaica closed the week with projected gains of 163 percent as the leading main market stock with the price falling to $1.90 by the end of the week. Berger Paints sits at the number two spot with projected gains of 121 percent as more interest comes in for this stock coupled with reduced selling ahead of the most important quarter coming up when sales exceed all other quarters and Carreras with projected gains of 112 percent.
The main market, closed the week with the overall PE of 16.7 down from 17.7 the previous week and the Junior Market is down to 11.3 from 11.6 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.8 compared to 7.7 the previous week and the main market PE slips to 10.4. These levels of PE ratios point to big upside for TOP 10 stocks.
The TOP 10 stocks now trade at an average discount of 31 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains. The likely gains are ranked in descending order, with the highest-ranked being the most attractive and moving down the least attractive. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Medical Disposables, Radio Jamaica, Scotia Group, Seprod, Stanley Motta, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

IC TOP 10 MPC hits new record high

September 17, 2019 by IC Insider.com

Prices pulled back during the past week but the new IC TOP 10 BUY RATED main market stocks MPC Caribbean Energy surged to an all-time high of $153.06 and is still in the TOP 10 and seems poised to move higher with no sellers in sight.
Seprod returns and Scotia Group moved out to be the only changes to the main market list. Jetcon Corporation, Caribbean Cream and Caribbean Flavours return to the Junior Market TOP 10 replacing CAC 2000, Dolphin Cove and Jamaican Teas.
The three most attractive Junior Market stocks are Iron Rock with projected gains of 257 percent, followed by Caribbean Producers with likely gains of 237 percent and tTech with projected gains of 208 percent.
Radio Jamaica closed the week with projected gains of 138 percent as the leading main market stock followed by Berger Paints with projected gains of 132 and Carreras with projected gains of 112 percent.
The main market, closed the week with the overall PE of 17.7 down from 18.3 the previous week and the Junior Market is down to 11.6 from 12.1 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.7 compared to 8.4 the previous week and the main market PE is now 10.5. These levels of PE ratios point to big upside for TOP 10 stocks.
The TOP 10 stocks now trade at an average discount of 33 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 41 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, Express Catering, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Main Event, Medical Disposables, MPC Caribbean Clean Energy, Radio Jamaica, Scotia Group, Seprod, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

The Lab almost doubles Q3 profit

September 10, 2019 by IC Insider.com

Profit at newly listed Junior market Limners and Bards climbed 94 percent in the July 2019 quarter, to $12.7 million after taxation of $4 million from $6.5 million in the 2018 quarter.
The company that is primarily involved in the production of television and multimedia commercials, video productions feature films and advertising agency saw, profit rising just 17 percent to $70 million from $60 million in 2018 for the nine months to July.
Operating revenues rose 16 percent for the quarter, to $152 million from $131 billion and grew 24.4 percent for the year to date, to $486 million from $391 million in 2018.
In contrast to the third quarter, revenues for the April quarter brought in $145 million and delivered pretax profit of $30 million against revenues of $136 million and pretax profit of $24.5 million for the similar period in the prior year.
Gross profit margin in the nine months to July rose to 31.5 percent from 23.5 percent in 2018, as gross profit rose much faster than revenues to be up 56 percent to $48 million from $31 million in 2018. Gross profit margin climbed 36 percent for the nine months from 33 percent in 2018 with gross profit climbing 32 percent over the prior year’s third quarter to $173 million from $131 million.

Kimala Bennett, Managing Director of The Lab.

Administrative expenses rose 70 percent to $30 million in the quarter and increased 42 percent in the nine months period to $81 million from $57 million. Finance cost was flat in the quarter at $1.3 million but rose from $1.2 million to $3.7 million for the nine months.
Earnings per share came out at one cent for the quarter and 9 cents for the nine months and should end the fiscal year ending around 12 to 13 cents.
Gross cash flow from operations brought in $99 million but growth in receivables, offset by an increase in payables, reduced net flows to $52 million. The company ended the period with $237 million in the bank after receiving $179 million from the sale of shares to the public and paying a dividend of $40 million.
At the end of June, shareholders’ equity stood at $332 million with borrowings at just $42 million. Net current assets ended the period at $281 million inclusive of trade and other receivables that jumped sharply from $65 million at the end of October last year to $181 million.
The stock traded at $3 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 23 times 2019 earnings of 13 cents per share.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, junior market, Limners and Bards, The Lab

Big surprise entry to IC TOP 10

September 8, 2019 by IC Insider.com

IC TOP 10 BUY RATED main market stocks got a surprise entry as MPC Caribbean Energy surged into the top list for the first time to sit at fourth position at the expense of Seprod.
There was no other change in the main market list but the Junior Market IC Insider.com TOP 10 had two new entrants with CAC 2000 returning after a week’s absence, along with Dolphin Cove. They replaced Access Financial and Express Catering with the prices of both moving higher by the end of the week.
MPC is making the top list after the company reported profit of US$126,746 or the June quarter before the company’s investment in the solar plant in Westmoreland, Jamaica, starts contributing full quarterly revenues and profit.
The three most attractive Junior Market stocks are Caribbean Producers with projected gains of 233 percent, followed by Iron Rock with likely gains of 200 percent and General Accident with projected gains of 188 percent.
Radio Jamaica inched to $2.13 at the close of the week leaving it with projected gains of 135 percent and the leading main market stock with the highest likely gains followed by Carreras with projected gains of 112 and Berger Paints with projected gains of 110 percent after the stock closed the week at $20.
The main market closed the week with the overall PE of 18.3 and the Junior Market remains at 12.1 current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.4 and the main market PE is now 10.2. These levels, point to big upside for TOP 10 stocks to the end of March next year and Junior Market stocks in particular as they lag, the values of the main market by a third.
The TOP 10 stocks now trade at an average discount of 34 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 44 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.

Filed Under: Buy Rated Tagged With: Berger Paints, Caribbean Producers, Carreras, Daily Trading, Emerging markets, Express Catering, General Accident, Grace Kennedy, Iron Rock Insurance, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Lasco Financial, Main Event, Medical Disposables, MPC Caribbean Energy, Radio Jamaica, Scotia Group, Seprod, Stanley Motta, Stocks to Watch, Sygnus Investments, TOP 10 stocks, Trading Activity, tTech

Lasco’s Q1 interest income jumps 42%

September 8, 2019 by IC Insider.com

Lasco Financial enjoyed increased revenues but slightly lower profit in Q1.

Growth in revenues can be a good indicator to identify good future investment candidates even if profits may be moving slowly. By that measure, Lasco Financial is a good stock to watch for future growth.
The company reported strong growth in revenues but virtually flat profit results in the first quarter to June. Interest income grew a strong 42 percent to $219 million from $154 million in 2018 helping to grow overall operating income to $586 million, up 11 percent from $526 million in the June 2018 quarter. Annualized, interest earned is set to exceed the $781 million earned for the fiscal year to March 2019. Other income rose to $69 million from $28 million in 2018.
While the top line moved up well, the gains were overtaken by the faster increase in expenses. Administrative and other expenses climbed 23 percent, to $247 million from $200 million while selling and promotional expenses moved up 26 percent to $230 million from $182 million. Finance cost rose to $49 million from $41 million in 2018 while taxation charge increased to $39 million from $31 million in the 2018 first quarter.
Provision for loan losses amounting to $84 million, was made in the quarter, with none in 2018. The increase in loan losses played a major part in keeping the 18 percent rise in revenues from bettering the $101 million profit realized in the 2018 quarter and ending with $91 million.

Lasco Financial Money Gram

Excluding the loan loss provision, profit before tax would have risen by 62 percent and lead to earning per share rising from 7.2 cents to 11.7 cents or close to 50 cents per share for the full year. Loan loss provision for the 2019 fiscal year was $215 million net of recoveries and seems set to exceed this amount by the year-end with the growth in the loan portfolio.
Total assets increased year over year by $481 million to $4 billion with loans and receivables rising to $2.66 billion from $1.85 billion at the end of June 2018 and $2.37 billion in March 2019. The increase was partially funded by a reduction in cash and short-term deposits that fell to $125 million from $456 million in June 2018 and is down from $283 million as of March this year. Shareholders’ equity rose to $1.68 billion from $1.47 billion at the end of June 2018. Lasco’s borrowings rose from $2 billion to $2.2 billion over the same periods to help finance the growth in loans.
Lending is the area of growth for Lasco Financial and the pace seen the first quarter could carry through for the rest of the year and have a domino effect on revenues and profit. The company’s shares are listed on the Jamaica Stock Exchange Junior Market and last traded at $5.50 with a PE of 9 times estimated 2020 earnings.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Jamaica Stock Exchange, junior market, Lasco Financial Services

Fontana Q4 sales jump 15%

September 2, 2019 by IC Insider.com

the stock remains the main attraction in trading.

Fontana upcoming Waterloo Road branch set to open in September.

Sales at Junior Market listed Fontana grew 6.8 percent in the March 2019 quarter over 2018 and 7 percent for the nine months to March as well as for the full year to June but surged by a strong 15 percent in the final quarter to June.
Audited financial report show sales for the full year at $3.7 billion, up on the $3.42 billion recorded in 2018, representing growth of $594 million in the June 2019 quarter over the $3.108 billion generated up to March this year. Revenues for the June 2018, added $516 million to the nine months’ sales of $2.9 billion recorded to March last year. The June quarter revenues are much lower than in the March quarter with sales of $951 million that is up from $890 million in 2018. The acceleration in growth in the June quarter is significant and is worth watching to see if it continues.
The audited accounts when compared with the March quarter show profit margins that were better in the final quarter than in the March quarter with gross profit coming in at $281 million versus $297 million but with the June quarter sales being just 63 percent of the March sales. The company reversed $56 million in provision for inventory obsolescence during the year and this could be the reason for the sharp improvement in the fourth quarter margin.
Administrative and other expenses that rose 10.5 percent to March to $721 million finished the year off with an 8.3 percent increase to $1 billion. Some of the cost increase would be as a result of staffing and other cost associated with the new store at Waterloo Road in Kingston that is slated to open in mid-September.
Fontana ended with profit before taxation of $270 million, down from $303 million in 2018 but closed with profit after tax at $307 million versus $247 million in 2018. The operations generated gross cash flows of $305 million for the year and expended $441 on the acquisition and property development and inflows of $223 million from the issue of shares to the public. Cash and equivalent rose to $383 million at year-end with receivables at just $67 million while payables stood at $460 million and loans at $157 million.
Inventories excluding provision for obsolescence is down from $712 million to $639 million at the end of the fiscal year. Fixed assets grew to $701 million after the sale of $302 million of buildings and spending of $464 million on the Waterloo Road store. Shareholders’ equity climbed to $1.27 billion from $1.06 billion in 2018.
The stock traded at $8.20 on Friday at a PE ratio of 11 based on IC Insider.com forecasted earnings of 75 cents per shares.