Businessuite Markets
$12 Billion Raised from TransJamaican Highway Public Offer
Minister of Finance and the Public Service, Hon. Fayval Williams, has expressed pleasure with the public take-up of the Government’s 20 per cent stake in TransJamaican Highway Limited (TJH).
The public offer for shares, which closed on March 18, attracted more than 22,000 applications, raising over $12 billion, exceeding the initial estimate of $9 billion.
Addressing a recent event held at Progressive Shopping Centre in St. Andrew to mark the successful conclusion of the offer, Minister Williams said the response of the public shows an increased understanding of the value of such investments.
“I feel very good about the reception of Jamaicans to this. It’s a great investment; something that they understand. They use the toll road every day going to and from work… . They see the potential of it because we are always going to be needing bigger and better roads,” she pointed out.
Minister Williams congratulated all the stakeholders involved in the initiative, including lead broker NCB Capital Markets and partner Jamaica Money Market Brokers (JMMB).
“For all the persons who worked on it, all the financial institutions, I just want to say a big thank you to all of them. The timeframe that we gave them was very short but they delivered on time and the deal was oversubscribed,” she said.
Senior Vice President for Investment Banking, NCB Capital Markets, Christopher Buchanan, in his remarks, said consistent efforts to explain the benefits of the initiative paid dividends in getting public buy-in for the project.
“When you have an offer of this size you probably think the demand is not there unless its institutional. But I think what ended up happening is that the more we spoke about it, the more we gave the market information, and the more we spoke to regular persons about how it would affect them, what we saw was an absolute snowball,” he pointed out.
“We said to them ‘listen, the road naah go nowhere. The company (TJH)… will make money and pay you dividends. They have a long-term contractual agreement and they are looking to build out more tolls over the year. It’s here for the long-term and you can buy it for yourself’ and I think persons bought into that vision,” he shared.
In the meantime, General Manager for Public-Private Partnerships and Privatisation at the Development Bank of Jamaica (DBJ), Denise Arana, noted that there are many more government-sponsored investment offers in the pipeline for members of the public.
“The Government’s privatisation programme is a deliberate and concerted effort to bring more Jamaicans into the economy to broaden the ownership base. So, we had Wigton (Wind Energy Limited), we had the first TransJamaican transaction…. then we have the Jamaica Mortgage Bank that’s coming.
“So, the Government really is looking at a broad spectrum of opportunities to bring them to the market for everybody to participate in that opportunity,” he added.
By: Vaughn Davis, JIS
Businessuite Markets
Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.
Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.
The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.
Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.
Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.
Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.
Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.
Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.
Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.
While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.
Solomon Sharpe Chief Executive Officer
Powering the Future: CARILEC and Green Solutions International SKN Launch Electric Vehicle Training in St. Kitts
JSE launches Green Bond Plus Platform
The Smart Way to Invest
Businessuite 2023 Top 100 Caribbean Companies – US$ Revenue
Jeffrey Hall Is Set To Be One Of The Most Powerful Men In Corporate Jamaica And The Caribbean. So, Who Is He?
Which Company Has The More Sustainable Business Model….Edufocal or ICREATE and Why?
-
Businessuite Markets3 weeks agoR.A. Williams Distributors Experienced 8% Decline In GP Margin Due To Lower Margins On Government Sales
-
Businessuite Markets1 week agoScotiabank Group Jamaica Continues To Perform Well
-
Businessuite Markets2 weeks agoListing GraceKennedy Financial Group on the JSE
-
Businessuite Markets1 week agoJamaica Broilers Group Faces Major Financial Setback as US Operations Struggle; Stephen Levy Resigns
-
Businessuite Markets3 weeks agoLumber Depot Associate, Atlantic Plumbing And Hardware To Offer 20% Of Its Share Capital To Raise JA$500 Million In Planned IPO.
-
Businessuite News243 weeks agoJA$2 Billion in Support to Jamaican MSMES
-
Businessuite News243 weeks agoGCT Exemption Threshold for MSMEs Increased to JA$15 Million
-
Businessuite Markets3 weeks agoSingle Tax Rate on Dividends to Attract Investors To Jamaica