Business

Mayberry Jamaican Equities grows assets base

BY BALFORD HENRY
Senior staff reporter
balfordh@jamaicaobserver.com

Sunday, October 14, 2018

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Mayberry Jamaican Equities (MJE) managing director, Natalie Augustin, has reported revenues of $6.76 billion, in total comprehensive income for the 9-month period which ended September 30, 2018

According to Augustin, total assets of the newly mobilised investment arm of Mayberry Investments Ltd (MIL) grew to $18.4-billion for the third quarter of 2018, representing a $10.9 billion increase, or 146.7 per cent increase in its asset base, from the $7.5 billion for the comparative quarter of 2017.

She said that this was due mainly to the increased value of quoted equities, particularly, Lasco Financial Services Ltd, Caribbean Producers (Jamaica) Ltd, Blue Power Group Ltd, Iron Rock Insurance Company Ltd and Supreme Ventures Ltd.

In her Managing Director's Commentary on the company's latest financial results, Augustin reported:

INVESTMENT ENVIRONMENT

The company currently holds shares in 31 companies listed on the Main and Junior Markets of the Jamaica Stock Exchange (JSE).

For Q3 2018, the JSE Main Market Index grew by 52,584 points or 17.2 per cent up from 305,736 points to 358,320 points when compared to Q2 2018. The JSE Junior Market also grew by 358 points or 11.8 per cent at the end of September 2018 to 3,395 points. Both markets continue to reflect increased activity.

Jamaica's macroeconomic indicators remained positive for the 3rd quarter with the net international reserves above adequate levels at US$3.03 billion, fiscal performance continued to be strong and market interest rates were at record lows. As institutional investors continue to raise capital in the market, the Jamaica Stock Exchange maintained its strong ranking when compared to other exchanges worldwide.

FINANCIAL POSITION

Total assets grew to $18.4 billion for the 3rd quarter 2018 compared to $7.5 billion for the comparative quarter 2017. This represents a $10.9 billion increase or 146.7 per cent in our asset base due mainly to increased value of quoted equities, particularly, Lasco Financial Services Ltd, Caribbean Producers (Jamaica) Ltd, Blue Power Group Ltd, Iron Rock Insurance Company Ltd and Supreme Ventures Ltd.

Total liabilities increased over 3rd quarter 2017 by $2.74 billion to $2.8 billion or 45.8 times. This resulted from an increase in accounts payables of $444 million and the addition of a corporate loan note of $2.2 billion during the period.

SHAREHOLDERS' EQUITY

MJE's capital base continues to grow and remains in good standing, resulting from higher profitability, with retained earnings moving from $3.8 billion to $5.6 billion and fair value reserves of $8.6 billion, up from $2.1 billion.

NET ASSET VALUE (NAV)

Net book Value per share moved to $13.01, a 110.9 per cent increase over the corresponding period in 2017, due to an increase in equity investments of $11.23 billion. This represents a balance of $16.95 billion as at September 30, 2018 moving from $5.72 billion at the end of 3rd quarter 2017.

OVERALL PERFORMANCE

Our revenue performance for this quarter experienced significant growth as MJE reported an after-tax profit of US$250 million for the quarter ended September 30, 2018. This resulted in earnings per share (EPS) of $0.21 and represented a three- time increase over the same period in 2017.

This was mainly due to the revaluation of the equities classified as Fair Value through Profit or Loss (FVPL).

TOTAL COMPREHENSIVE INCOME

Total comprehensive income for Q3 amounted to $4.25 billion, compared to $295 million for the corresponding quarter of 2017; an increase of $4.0 billion or 13 times. This was due to an increase in the equity reserve, resulting from revaluation gains booked for stocks held in the current portfolio.

TOTAL REVENUES

Net revenues increased by $634.8 million over the corresponding period last year, to reach $657.8 million. This increase was driven by a 100 per cent increase in unrealised gains on investment revaluation, in addition to dividend income increasing by 138.4 per cent or $40.3 million. Dividend income earned resulted mainly from holdings in Supreme Ventures Ltd, Caribbean Producers (Jamaica) Ltd, Jamaica Money Market Brokers Ltd and Blue Power Group Ltd.

OPERATING EXPENSES

Operating expenses increased by $381.7 million or 48 times when compared to the corresponding quarter in 2017 due to incentive and management fees for investment management services and, also, legal and professional fees for the corporate loan note.

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