Trinidad recession bites Guardian Media hard

April 1, 2018 by

Guardian Media profit falls sharply since 2014.

A sharp fall in sale revenues in 2017, at Trinidad’s Guardian Media left the company hugging a small loss for the year ending December, according to an abridged quarterly report.
Profit dropped 94 percent in the 2017, to TT$488,000, for the December quarter before tax, from $8.5 million in 2016, but rose to $1.9 million after a tax credit of $1.4 million from a net profit of just $400,000 in 2016. For the year, the media house recorded a loss of TT$3 million after tax, from a profit after tax of $6.3 million in 2016, resulting in negative earnings per share of 8 cents.
Revenues fell 20.6 percent in the December 2017 quarter to TT$36 from $45 million and 16 percent to TTS$138 million from $164 million for the year.
The 2017 results is in stark contrast to 2015 when the company posted $35 million after tax and TT$34 million in 2014 from revenues in excess of $195 million for both years.
Cash flow brought in amounted to TT$20 million but capital payments and investments activities including paying $24 million in dividends used up $27 million, leaving cash at $72 million. Shareholders’ equity at the end of December, stood at TT$278 million, down from $305 million in 2016. Current assets ended the year at TT$131 million well ahead of current liabilities of TT$49 million.
According to the company’s chairman Peter Clarke, in his report included with the results, “2017 was a year of transition for Guardian Media as it implemented a number of planned structural changes. These changes included: (1) print automation systems to improve efficiency; (2) internal restructuring to lower the cost base and further improve the efficiency and quality of content creation and (3) re-alignment of teams to better serve our customers and fully equip the company for the digital media landscape. The one-time costs of these changes are reflected in these results. Parallel to this, the country’s economic slowdown has had a considerable impact on advertising spend across all sectors.”
The stock last traded at TT$17.98 in November on the Trinidad and Tobago Stock Exchange (TTSE), but now has an offer at $16.38. Net asset value is TT$6.66 per stock, with the stock offered for sale at 2.46 times book value. The company is a subsidiary of Ansa McAl which is also listed on the TTSE.

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Angostura Holdings 2017 profit drops 9%

April 1, 2018 by

Angostura Holdings aged rum.

Profit at Trinidad’s Angostura Holdings dropped 8 percent in the 2017, to TT$154 million before tax on profit and was down 9 percent to TT$111 million after tax.
The 2017 out turn, resulted in earnings per share of 54 cents, with profit coming from a 7 percent fall in sale revenues, to TT$575 million. Profit declined sharply from 2015 when the company posted $164 million after tax, compared to TT$153 million in 2014 and TT$122 in 2016.
Despite the fall in sales gross profit margin rose to 64 percent from 60 percent in the 2016, as operating cost fell 18 percent. Other income declined to a loss of TT$6 million from a loss of TT$1 million while interest income rose to TT$2.3 million from TT$642,000 in 2016.
Marketing and sales expenses declined by 4 percent to TT$131 million while administrative expenses rose a hefty 24 percent to TT$82 million from TT$66 million in 2016. Finance cost declined to TT$844,000 from TT$1 million in 2016.
Cash flow brought in TT$161 million but capital payments and receipts included put aside in net new investments of TT$118 million resulted in net outflows of TT$30 after paying TT$56 million in dividends.  Shareholders’ equity stands at TT$982 million at the end of December, with borrowings at just TT$20 million. Current assets ended the period TT$765 million well ahead of current liabilities of TT$98 million and cash and investment rose to TT$369 million from TT$281 million in 2016.
The stock traded at TT$15.70 on the Trinidad and Tobago Stock Exchange with a PE ratio of 29 times 2017 earnings. The company paid a dividend of 27 cents down from 32 cents in 2016. Net asset value is TT$4.78 with the stock selling at 3.28 book value.
In spite of the fall in profit since 2015, the stock price have remained around the $16 range from then resulting in the PE ratio rising sharply by nearly 50 percent.

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Modest profit rise at First Citizens

December 15, 2017 by

Profit before tax at the Trinidad and Tobago based First Citizens group rose 7.2 percent to TT$876 million, the year to September 2017 over the similar period to 2016.
Profit after tax profits rose just $5 million to $642 million, with a hike in profit tax to 30 percent from 25 percent in 2016. The Group’s benefited from improved efficiency and growth in Investments and loans to customers. Citizens ended with a modest increase in earnings per share of $2.54 compared to $2.52 in 2016.
Investments grew 4.9 percent to $13.6 billion from $12.97 billion at the end of the 2016 fiscal year while loans and advances, rose 7.4 percent to $16.52 billion from $15.38 billion, resulted in an increase in the net interest margin of $135 million or 10.5 percent. Customer Deposits declined to $23.98 billion from $25 billion in 2016, while shareholders’ equity climbed to $6.75 billion from $6.68 billion
Board of Directors declared a final dividend of $0.71 per share, bringing the total dividend for the fiscal year to $1.40 per share, compared to $1.33 for 2016. The final dividend will be paid on December 29, 2017, to all shareholders on record as at December 20.
First Citizens traded at $32 on the Trinidad and Tobago Stock Exchange on Thursday for a PE of 12.6.

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Tough economics hit West Indian Tobacco

October 30, 2017 by

Tough economic conditions, flowing from an ongoing recession in Trinidad, together with increased Excise and Corporation Tax, the business environment resulted in significant changes in consumption patterns adversely affecting revenue of West Indian Tobacco.
The situation seems to have worsened with illicit cigarettes in the country. According to the Chairman, Anthony Phillip “the Company continues to engage with relevant authorities and stakeholders on the issue of the increased presence of suspected illicit products in the market which has negatively affected our business.”
Against this backdrop, West Indian Tobacco has recorded profit before taxation of $398 million and net profit of $276 million for the nine months to September, down from $373 million in 2016. Revenues fell from $891 million to $787 million but revenues inched just higher in the quarter to $274 million from $272 million in 2016 and revenues net of excise tax was slightly down for the quarter.
Profit after tax for the September quarter fell from $123 million to $97 with tax increasing to $44 million from $43 million in 2016.
The Company continues to proactively respond to the evolving market conditions with ongoing reviews of its Brand Portfolio, Trade Marketing, and Distribution strategies, as well as careful cost management across its operation.
The Board approved the payment of a third interim dividend of $1.14 per ordinary share payable on 24 November 2017, the payment is down compared to $1.44 paid in 2016.
Earnings per share came out at $1.16 for the quarter compared to $1.46 for the similar period in 2016 and for the nine months period $3.27 versus $4.42 in 2016 and should end around $4.75 for the full year giving it a PE ratio of 26 and should result in more decline for the stock. In 2016, earnings amounted to $6.12 per share.
The stock that traded at $127.01 earlier in the year is down to $124.96 on the Trinidad and Tobago Stock Exchange.

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Record close for Jamaican stocks on TTSE

October 19, 2017 by

Trading on the Trinidad & Tobago Stock Exchange recommenced on Thursday, after a public holiday on Wednesday, with 12 securities changing hands compared to 11 on Tuesday.
The Jamaican based JMMB Group and NCB Financial Group moved to new 52-week highs of $1.70 and $5.31 respectively while Republic Financial Holdings led with 60 percent of the value of securities traded.
At the close, 5 stocks advanced, 2 declined and 5 were unchanged as 162,830 shares traded at a value of $1,808,056 compared to Tuesday’s trades of 452,687 valued at $3,307,105.
The Composite Index advanced 2.01 points to 1,248.64, the All T&T Index gained 0.18 points to 1,770.68 and the Cross Listed Index added 0.53 points to close at 97.71.
IC bid-offer Indicator| The Investor’s Choice bid-offer ended with 2 stocks with bids higher than last selling prices and 7 with lower offers.
Gains| Agostini’s ended with a gain of 1 cent and closed at $20.53 in exchanging 3,640 shares, JMMB Group traded 10 cents higher to a 52 weeks’ high of $1.70, with 106,000 shares trading, NCB Financial Group closed at a 52 weeks’ high of $5.31, rising 1 cent with 26,926 shares. Republic Financial Holdings gained 3 cents to settle at $101.79 with 10,572 shares valued at $1,076,113 and Scotiabank climbed 3 cents to $58.05 with 525 units changing hands.
Losses| The securities declining in trading are, Massy Holdings closing at $50.47, after falling by 3 cents in trading 411 units and Trinidad & Tobago NGL ended with a loss of 1 cent, at $23.01 with 1,930 units.
Firm Trades| Securities traded unchanged at the close, are Angostura Holdings closing at $15 with 1,000 units, Ansa McAL trading 740 units at $63.01, First Citizens ending at $31.76 with 3,000 shares, Grace Kennedy exchanging 3,391 shares at $2.90 and Guardian Holdings holding firm at $15.26 with 4,695 shares traded.

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Storm closes TTSE

June 20, 2017 by

Trading on the Trinidad & Tobago Stock Exchange was suspended for the day of 20th June 2017 because of the impending arrival of tropical storm Brett. The market last traded on Friday as it was closed on Monday for the Labour Day holiday.
On Friday, 13 securities changed hands compared to 16 on Wednesday with 2 stocks advancing, 5 declining and 6 unchanged with 143,801 shares traded at a value of $2,818,683 compared to Wednesday’s trades of 373,818 valued at $18,441,277. The market was closed for a public holiday on Thursday.
The Composite Index declined 1.05 points to 1,211.45, the All T&T Index slipped 0.63 points to 1,789.75 and the Cross Listed Index lost 0.20 points to 84.86.

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Berger to have new owner

June 18, 2017 by

Berger Paints Jamaica along with the Berger Paints in Trinidad and Tobago and Barbados will have new owners, later this year as Ansa Coatings International (ACIL), a subsidiary of the sprawling Trinidad and Tobago conglomerate, ANSA McAL Group entered into an agreement with Berger International Private Limited to acquire Lewis Berger (Overseas Holding) Limited.
Lewis Berger (Overseas Holding) owns 51% of the issued share capital in Berger Paints Jamaica. Berger Paints Trinidad and Tobago is 70 percent owned by its parent Lewis Berger and is listed on the Trinidad and Tobago Stock Exchange and last traded on June 12, at TT$4.05, but trades infrequently. Berger Paints Barbados Limited is owned fully by the parent company.
The combined Berger Caribbean business net sales is put at US$35 million, a statement by Ansa McAl states. The completion of the transaction is subject to conditions set out in the agreement between BIPL and ACIL. ANSA Coatings and its subsidiary, produces, market and distributes coatings in the categories of decorative and architectural, wood finishes, automotive, light and heavy duty industrial and marine under the following brands: Penta, Sissons, Glidden, Nexa Autocolor, Aquabase Line, Devoe and International.
Group Chairman and Chief Executive of the ANSA McAL Group, A. Norman Sabga noted that the acquisition will further enhance the Group’s position in the Caribbean architectural coatings market. “Berger is best known for its well-positioned paint brands throughout the region. The architectural coatings industry has enjoyed a period of healthy innovation over the last decade.

Carib Beer brewed in Trinidad by Ansa McAl Group

Through this acquisition, we hope to address an expanded customer base with a broader suite of product offerings and superior levels of customer service and support”, Sabga concluded.

At this stage it is unclear exactly how the new owners when the deal is concluded will move forward with the expanded paint group. The acquisition has far reaching ramification for ANSA Coatings. This means that products imported into Jamaica from Trinidad can be produced in the plant in Jamaica while the two plants in Trinidad can be merged into one, both actions would result in significant savings and improved profit margins. The Barbados could be served by exports out of Trinidad.
ANSA McAL is a diversified Public Conglomerate, listed on the Trinidad and Tobago Stock Exchange, with subsidiaries in Trinidad and Tobago, Barbados, St. Kitts and Nevis, Guyana, Grenada and the USA and involved in the manufacturing, brewing, insurance, finance, real estate, media, shipping, trading/distribution and automotive and industrial equipment retailing sectors.

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Sagicor Barbados undervalued but

May 27, 2017 by

The Barbadian based Sagicor Group is reporting net profit of US$23.4 million for the first three months of 2017, compared to the prior year of US$22.3 million. Profit flowed from revenues for the quarter of US$282.5 million, compared to US $264.4 million for the corresponding period in 2016, an increase of US$18.1 million.
Profit attributable to shareholders’ of the group ended at US$13.3 million, compared to US$13.9 million for the 2016 period. Earnings per common share was 4.4 US cents, compared to the prior year of 4.6 US cents.
Net premium revenue rose t0 US$167.7 million, exceeding the prior year amount of US$157.3 million. Net investment income and other income rose to US$114.8 million compared to the prior year’s US$107 million.
Operating expenses rose to US$115 million from US$101.4 million for the same period in 2016. “Higher administration costs were incurred as a result of the expansion of cards and payments business in our Jamaica segment, along with the incurrence of some non-recurring costs also relating to our Jamaica segment”, Stephen McNamara, Chairman, stated in his report to shareholders. Policy holders’ benefits inched to US$137.2 million from US$134 million for the previous year.

Sagicor Group Jamaica a subsidiary of the Barbadian compnay.

Total comprehensive income grew to US$28.6 million, compared to US$19.9 million for the same period last year. Included in comprehensive income were net gains on financial assets of US$7.9 million. “Retranslation losses Sagicor Group Jamaica, a subsidiary of the Barbados company.[/caption] amounted to US $0.7 million, compared to US $6.4 million reported in the prior year, and resulted from declines in the Jamaica and Trinidad currency against the United States dollar”, the Chairman stated.
Total assets amount to US $6.6 billion, with liabilities of US$5.8 billion and shareholders’ equity of US$818 million. The Group’s debt, which is included in other liabilities, was US$405.3 million.
The group’s stocks traded on the Trinidad and Tobago Stock Exchange atTT$8.99 and in Barbados at BD$2.45, (around US$1.30 per share. The price puts the PE ratio around 7 times 2017 earnings. The problem is that Barbados where the company is head quartered is in the midst of major economic problems that could make investing in the stock riskier than normal.

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Profit drops at Trinidad’s NGL

November 20, 2015 by

T&TNGL traded at $21.51 on Thursday

T&TNGL traded at $21.51 on Thursday

Recently listed Trinidad and Tobago NGL suffered a sharp fall in profit in the September quarter with an out-turn of TT$44 million compared to $114 million in the same period last year and $125 million for the nine months to September, down from $219 million for the 2014 period.
The profit generated in the third quarter although sharply down from the similar period in 2014, is well up on the operating profit of $28 million for the March quarter but down on the $53 million in the June quarter of 2015. The decline is reflective of the fall in world energy prices.
The results flowed from the company’s share in a liquid gas joint venture of $46 million in the quarter, a fall from $129 million in the 2014 period and $134 million versus $277 million for the nine months in 2014. There were hardly any expenses incurred in operating the company.
Earnings per share for the September quarter is 28 cents and 85 cents for the nine months and should be around $1.15 for the full year.
NGL was incorporated in Trinidad and Tobago in September 2013. The The company does not do the processing on its own but acts as an investment holding company following acquisition of 39% of the share capital of Phoenix Park Gas Processors that is the largest producer of natural gas liquids in Trinidad and Tobago with its operation commencing in 1991.
The company will be paying a special dividend of 50 cents per share on December 15. A total of 75.8 million out of 116,100,000 issued shares, were offered to the public to raise $1.5 billion for the government of Trinidad and Tobago in September and is listed on the Trinidad and Tobago Stock Exchange and last sold at $21.51 at a PE of 19.

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TCL older owners screwed as profit rise

November 2, 2015 by

TCL 9-15Trinidad Cement achieved a 135 percent jump in profit after tax due to shareholders for the quarter to September, but the data showed that the most of the minority shareholders have suffered a massive dilution in their earnings.
The company reports $74 million for the 2015 third quarter, compared with $30 million for the same period last year, year to date profit after tax leapt 558 percent to $395 million above the $60 million reported for similar period for 2014. All shareholders get 16 cents per share for the September quarter for each share they hold, the year to date results show them entitled to $1.18 or 7.65 times the September quarters’ earnings. The year to date profit is 6.8 times the prior year’s nine months figure, a difference of 12.5 percent.
The company through a rights issue increased the share capital which diluted the earnings per share. Instead of increased earnings after the company’s debt was restructured, leading to lower debt servicing cost, the majority of shareholders will see lower earnings per share going forward even as the company prevented some shareholders from participating in the issue and withheld pertinent information from most shareholders. As a result the earning per share for 2016 is likely to be no more than 70 cents compared to 96 cents in 2015 from continuing operations, even as profit is likely to rise.
Earnings per share from continuing operations amount to 15.5 cents for the quarter and $1.186 for the nine months. Full year earnings should end up around $1.40 but this includes approximately 44 cents relating to the one off restructuring credit, thus reducing the ongoing earnings to 96 cents per share.

Caribbean Cement factory- majority controlled by TCL

Caribbean Cement factory- majority controlled by TCL

Revenue in third quarter 2015 rose 7 percent to $550 million compared to $514 million in third quarter 2014, due mainly to a 13 percent increase in cement sales volume in the domestic markets and higher clinker export sales. For the nine months sales revenue amount to $1.64 billion versus $1.59 billion in 2014.
“This performance was largely driven by higher domestic sales volumes, and lower fuel and electricity costs at CCCL and ACCL” Wilfred Espinet Group Chairman and Nigel Edwards, a Director of the company told shareholders in a statement accompanying the interim financials. The company enjoyed a $206 million credit which is reflected mainly in the year to date results for 2015 as a result of restructuring the heavy debt in had incurred previously.
Finance cost for third quarter was $12.5 million lower than third quarter 2014 and ended at $35 million due both to the reduced interest rates from the new loans and a reduction of the principal loan balance from US$245 million to US$200 million. For the year to date finance cost fell to $145 million compared to $214 million in 2014.
Cash flow from operations amounts to $65 million I the quarter and $677 million of the nine months leading to cash at the end of the period at $302 million. The working capital moved to $340 million with current assets of $978 million and current liabilities of $633 million at the end of September. Non-current liabilities stand at $1.4 billion and equity at $1 billion.
The company shares are listed on the Trinidad and Tobago Stock Exchange (TTSE), it manufactures and distributes cement in the eastern Caribbean and Jamaica. The stock last traded at $3.50 on the TTSE on Friday October 30.

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