AS Bryden & Sons Holdings Ltd seems set to be the next listed company on the Main Market of the Jamaica Stock Exchange. The company, through its listing agents NCB Capital Market, posted an abridge financial statement on the JSE website on Monday, a sign that the listing will be in days, so far, there are no signs that is will list in Trinidad at the same time.
The company has shareholders” equity of TT$576.2 million of Jamaican J$13.25 billion as of June 2023 with total borrowings exceeding shareholders equity with long term loans of TT$285 million and medium term borrowings about two TT$534 million.
Current assets stand at TT$1.19 billion, with inventories and trade receivables amounting to TT$976 million and current liabilities at TT$576 million.
Sales revenue for the six months to June amounts to TT$1.18 billion with gross profit of TT$304 million, for a 25.7 profit margin. Pretax profit amounts at TT$74 million an after tax profit of TT$56 million.
Massey Holdings is trading around 10 times current year’s earnings if this is achieved by Bryden it would value the stock at J$12 billion or just a bit below book value.
The company focuses is on the distribution of fast-moving consumer goods (FMCG) and the sales divisions are grouped into three teams specialising in Premium Beverages, Food & Grocery, and Hardware & Housewares.
Seprod owns 54 percent of Bryden, which was acquired in 2022.
AS Bryden & Sons JSE listing imminent
General Accident to jump Junior Market
General Accident Insurance advises that it has successfully applied for graduation of its listed ordinary shares from the Junior Market to the Main Market of the Jamaica Stock Exchange, which will take place effective September 27,
General Accident spreading wings
According to the company, since being listed on the Junior Market over ten years ago, the Company has grown its gross written premium almost seven-fold. In addition to its market leadership in Jamaica, the Company has established a regional presence in Barbados and Trinidad. The Directors of General Accident believe the successful application reflects its growth, increasing scope and ability to comply with the applicable governance standards for companies listed on the Main Market.
The company with more than $15 billion in annual premium income reported a profit of $577 million last year and $246 million for the six months to June this year up from just $41 million for the same period in 2022. ICInsider.com projected profit of more than $1 billion for 2023.
The move follows Eppley another member of the Musson Group that migrated from the Junior Market in December 2018.
100% gains for Transjamaican
Transjamaican Highway, after three and a half years of listing on the Jamaica Stock Exchange, came good in 2023 with the stock closing just over 100 percent for the year to date, when the price last traded at $2.84 on Monday, up 103 percent for the year to date, after hitting an intraday high of $2.88 at the start of trading on Monday.
The stock, which IPOed just before Jamaica at J$1.41 and one US cent for those shares designated in US dollars, was hit with Covid-19, languished in the market at that level but mostly lower until this year, when it finally broke out in March to now become the second best-performing stock of the exchange for 2023, following Ciboney that is now up 186 percent.
A year ago, the price was $1.30 is now up by 118 percent, even then the climb is far from over, with earnings poised to hit the J$0.30 range for 2023 and investors already paying up to the equivalent of J$3 in the US dollar market for the shares.
The increased interest in the stocks comes on the heels of the company acquiring the previous maintenance operators and effectively improving the profitability by US$12 million per annum.
For the March 2023 quarter, the Group reported revenues of US$18 million, 21% more than the US$14.9 million for the same quarter in 2022 and delivered a profit of US$5 million, up US$4.3 million compared to just US$0.7 million for the 2022 period.
SOS to split stocks into 9 units
Shareholders of Stationery and Office Supplies seem set to enjoy the benefit of splitting existing stock into nine ordinary shares for each they own to take effect and will result in the total number of shares jumping from 250.12 million units to 2.251 billion effective on July 25.
To accommodate the split, shareholders will be asked to vote on a resolution to be tabled at the company’s annual General meeting of July 25 to effect the split and will also be asked to vote to increase the number of shares to 500 billion units, with effect from July 25.
The shares of SOS that hit a record high of $34.98 on Wednesday closed at $33.89 on Thursday on the Junior Market of the Jamaica Stock Exchange.
Stock split news lift SOS to a record $26
Investors in office supply Junior Market listed company Stationery and Office Supplies are having a grand time, with the company reporting two highly profitable years with 2023 starting off on a promising note for another year of record profits.
Stationery & Office Supplies hit a new high after the proposed stock split announcement.
Over the past year, shareholders will receive dividends amounting to 38 cents per share with the second payment in July. To add icing to the cake, the announcement on Monday that the board of directors will meet on Wednesday to consider a stock split has pushed the share price to a record high of $26 in early trading on Tuesday, with an increase of 52 percent for the year to date on top of 179 percent gain in 2022. Up to late May, the stock was trading in the $15 region, a level that it was at for weeks.
In premarket trading there were several bids amounting to over 306,000 units at $26, the maximum the stock will trade at initially, against 23,811 on offer up to $26. Trading in the stock is halted until 10:30 but currently, there are 21 bids at $26 to buy 282,981 shares. On the other hand, the lowest offer is at $30.50 with 23,000 units, followed by 575 shares at $34.96 and 28,774 units at $35.01 and then 42,277 stock units at $44.97.
Is SOS the next stock Split?
Business has been great for Stationery and Office Supplies (SOS) over the past two years, with sales rising 55 percent over 2021 last year and 16 percent over the covid-19 affected 2020 in 2021 and is up 22 percent for the first quarter to March this year.
The surge in sales drove pretax profit excluding one-time income, up 34 over last year on top of a 151 surge in 2022 over 2021. While the company has started 2023 positively, reports are that its first shipment of goods to Cayman Island, which is expected to be an ongoing trade, has been sent off and that, in addition to its connection with Trinidad and Tobago that started in the latter part of 2022 and reports indicate that arrangement is in place for regular shipments to a third Caribbean country.
The stock had nearly two million units on offer up to June 5 at just under $16, but investors aggressively bought 1.5 million on that day and the stock has since seen limited supply on offer. The $20 price level is believed to be the trigger point for the directors to seriously consider recommending splitting the stock to shareholders. The stock price hit a 52 weeks’ high on Monday when it traded a small quantity at $21 and closed there again on Tuesday after 10,230 shares were traded. The stock price is up 22 percent this year and trades at a PE of 11 times 2023 earnings, but has more room to grow, with a PE of 15 putting the price within reach of $30.
SOS executives
More than 91 percent of the issued share are in the hands of the top 10 shareholders, thus reducing the potential supply that can come to the market with only 250 million shares issued. At the close of Tuesday’s trade, stocks on offer below $25 amount to 7,200 units, with 80,000 on offer at $25. After that, the bids start at $35.
Stock splits are popular among investors in Jamaica, with each announcement accompanied by a hike in the price of the relevant stock.
The door is left open for a resolution to be put to the company’s upcoming AGM for a stock split, as the annual report filed with the JSE stated that the date of the AGM was to be determined.
Agostini’s buys Jamaica’s Health Brands
The Trinidad and Tobago Stock Exchange listed Agostini’s Limited signed an Agreement to acquire all the shares of Health Brands Limited, a Jamaican pharmaceutical and personal care distribution company owned by Athol Smith.
The transaction has received regulatory approval and the due diligence process is nearing completion the company stated its release to the Trinidad and Tobago Stock Exchange. It is expected that this transaction will be finalized by the end of June 2023, and we will make a further announcement at that time.
Reports are that the owner approach some Jamaican companies in the sector but apparently, no one was willing to pay the price the seller was looking for. Smith had previously sold his Consumer Brands business to GraceKennedy in 2017, at the time, sales at the company were said to be generating sales of more than $2 billion reports are that the Health Brands revenues could be in the above region as well.
Agostini’s has a market capitalization of TT$4.4 billion with a stock price of $64.04. The company reported revenues of $1.13 billion for the March quarter 16 percent up from $971 million in 2022 with the half year coming in with an increase of 14 percent to $2.4 billion compared to $2.1 billion in the previous year. Quarterly profit attributable to shareholders jumped 43 percent to $63 million over $44 million in 2022 and the half year was up 97 percent to $209 million above the $106 million in 2022.
The company has been in an acquisition mode, acquiring 80% of the outstanding shares of Chinook Trading Canada Limited, a Canadian base consumer products business with trading operations primarily in Caribbean Region. The company states that these acquisitions are consistent with the group’s strategic objective of expansion in more business segments and greater geographical diversification.
Last year December, they acquired Collins and Carlyle business and disposed of Agostini’s Interior contractors division which the group considers is no longer strategically compatible with the group objectives.
For the half year earnings per share was $3.03 up from $1.53 in 2022 with the March quarter delivering EPS of 92 cents compared to 65 cents in 2022 and $2.91 for the 2022 fiscal year.
Shareholders’ equity closed out the half year at $1.55 billion. The stock traded on the TTSE at $64.25 on Friday, up 28 percent for the year.
More expansion coming for Dolla Financial
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.
SSL investors may soon hear about shares at JSE
Stock market investors who are clients of Stock and Securities with shares held in the Jamaica Central Securities Depository (JCSD) may hear by next week if their accounts will be the subject of a sale of assets to another financial institution, a development that if were the happen would maximise the proceeds from all the company’s physical and intangible assets in the interest of all the company’s creditors.
The Jamaica Stock Exchange subsidiary
Stock market clients of SSL have been unable to trade their stocks since the Jamaica Stock Exchange terminated its Member Dealers Agreement with Stocks and Securities Limited (SSL) effective February 24. Consequently, SSL and its clients were allowed to trade on the exchange.
Some SSL clients have been upset about their inability to trade, made worse by the absence of an update on the matter.
ICInsider.com contacted the Managing Director at the Jamaica Stock Exchange, Marlene Street, to elicit her response on a number of issues relating to the ability of investors to get access to their shareholdings held through SSL.
What is the position of shareholders and their shares in the central depository?
Response: Shareholders who have their securities deposited in the JCSD can rest assured that their securities are safe. Ownership of these securities cannot be transferred without their consent. Shareholders may view their statement from the JCSD Portal at jcsdportal.jamstockex.com or from the JSE’s website at jamstockex.com.”
Can shareholders access their shares now and if not, when and what is holding it up?
Response: “All shares held by investors at the JCSD are held under the account of a Broker Participant. To purchase or sell shares, an investor goes through their broker, the same applies if they desire to transfer their shares applies. Since the shares are held under the account of SSL, in this instance, the JCSD cannot transfer securities without their concurrence.”
“ We have written to the Temporary Manager of SSL to request approval to transfer the securities held by JCSD SSL account holders to brokers of the investors’ choice. We are aware that the Temporary Manager and the FSC are in discussions regarding same however, we await a final response to be able to guide the investors on how to access their shares.”
Allen and Bailey buy 30m One on One shares
Soho Investments and Jorden Investments acquired 15 million shares each in One on One on Monday, February 13, to increase their equity holding in the company, the company announced.
The companies, owned by Ricardo Allen and John Bailey, respectively, bring their ownership in the 2022 listed Junior Market company to just under 24 percent and under 9 percent, respectively, in a move that is a vote of confidence in the future growth of the company.
Allen said, “Obviously, as the leader of the organization, I see the tremendous value that the team has been able to create here. We would also have line of sight as it relates to the growth journey we are about to embark on. With that being said, we believe that the current share price is low, and we will take the opportunity to purchase shares on the market as they become available at this price.
“We have some excellent growth initiatives ahead, and we look forward to executing on these and sharing them with our valued stakeholders when the time comes”.
Ricardo Allen CEO of One to One
On a recently hosted Earnings Call discussing the company’s first quarter results, Allen indicated that one of the company’s key strategic focus areas for the remainder of this year would be developing its content agency. To this end, the team has already acquired 4,000 square feet of space where it will look to build out studios to host instruction sessions and otherwise produce content to support its other product offerings, such as its Classroom in a Box as well as its Award-Winning Learning Management System.
In an interview with Allen, he indicated to ICInsider.com the content studio will provide abundant opportunities for creating content in educational services for local and global consumption.
Allen also indicated that staff cost rose in the first quarter of the current year ahead of revenue growth but that the additional revenues will start to flow in the company’s second half year numbers that are expected to flow through existing partnerships with agencies such as the Ministry of Education locally and the Department of Education in the Bahamas, as well as international alliances, such as that with Community Services Foundation.
The first quarter results show revenues almost doubling to $83 million, compared with $45 million in 2021, with profit rising to $12 million before tax from a loss of $1.8 million in 2021, following a sharp jump in Administrative and marketing cost to $54 million from $32 million in 2021.
