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Barita Looking To A Future Built On A New Digital Platform As It Seeks To Be Resolute In Making Barita More Accessible, Convenient And Customer Focused.

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Mark Myers Chairman Barita Investments Limited (“Barita” or “the Group”) has released the following Group unaudited financial statements for the nine months of the financial year 2022.

The results reflect the investments being made in building the capabilities necessary to execute our strategic growth initiatives.

Strategic Highlights
We continued to remain focused on strategy execution for this transformative year, with highlights for the quarter including:

• Continuing to advance our digital agenda, completing the implementation of phase one of our customer relationship management solution and remaining well on schedule with the transformation of our core operating system that we spoke about in our 2020 and 2021 APO prospectuses. We also made significant improvements to our Barita Online platform, allowing our customers to request loans, and buy and redeem unit trust shares and equites at any time.

• Revamping and relaunching our Real Estate Unit Trust product to make it more accessible through a reduction in unit price and minimum investment (through a 10 to I split), as well as shorter lock-up periods. We subsequently allowed our clients access to the assets in our managed special purpose vehicle, MJR Real Estate Holdings (MJR), through this fund.

• Establishing our Premium Wealth and Corporate Solutions unit, which is working with our Investment Banking, Treasury and Asset Management teams to develop offerings for our institutional and high net worth clients.

• Maintaining the strategic priority of talent development and recruitment. We are especially pleased that our five young high potential analysts have successfully completed their first rotation through various business units within Barita and our affiliated companies in our two-year Cornerstone Analyst Program, which was launched in January 2022.

• Continuing the journey towards reorganization under a financial holding company, as required by the Banking Services Act under which our affiliated merchant bank operates.

• Continuing, through the Barita Foundation, to partner with government agencies, NGOs and with the Barita team to plan, sponsor and execute our corporate social outreach agenda aimed largely at young people in their education and entrepreneurial endeavours.

As we look to the future, we are resolute in making Barita more accessible, convenient and customer focused. We believe that digital platforms will help us achieve that end. We are in the first phase of that journey, and we will accelerate our build-out as we increase our capabilities in this regard.

As we navigated the uncertain environment, Barita continued to prioritize its liquidity and capital management, and remained focused on executing on its key strategic initiatives including flagship investments and a technology overhaul of the company.

Operating Performance

Against the backdrop of an increasingly uncertain operating environment, Net Profit for the nine-months period came in at $3.8 billion, a 4% increase relative to the FY21 outturn of $3.7 billion. The profit outturn translates to earnings per share of $3.18, which is 6% lower than the comparable period in FY 2021.

Barita registered net operating revenue of $7.2 billion for the nine months of FY 2022, representing a $535 million (8%) increase versus the prior year period.

The Group’s revenue base for 9M FY 2022 was comprised of:

Net Interest Income:

Net Interest Income (NII) reflected a $287 million (39%) increase year-over-year (“YoY”).

Net Interest Income (NII) reflected a $235 million (20%) increase year-over-year (“YoY”) to $1.4 billion for the year-to-date (YTD) period.

During the April – June quarter in particular, local market liquidity conditions were tight as a consequence of the Central Bank’s policy actions, which in turn led to higher interest rates on funding liabilities across the securities sector.

However, our continued focus on growing the Group’s alternative investments, credit and fixed income portfolios provided a bulwark for NII, even as the repo funding rates rose.

Our net interest income is fundamentally linked to both local and global monetary policy measures that Central Banks are using to target the persistent levels of inflation. In that regard, we cannot be sure whether inflation is likely to abate soon, thus providing a basis for Central Banks to unwind their restrictive policy actions. As a result, NII is likely to remain a challenging item to grow in the ensuing quarters. Notwithstanding, we will continue to focus our attention on the pursuit of alternative investment strategies aimed at continuing to grow and diversify our investment portfolio.

Non-Net Interest Income:

Non-interest income reflected a modest year-over-year increase of 5% or $300 million, to $5.8 billion relative to $5.5 billion in the comparable period in FY 2021 (“9M FY 2021”). The increase in non-interest income was principally driven by a 163% increase in gain on investment activities and dividend income.

The details of our non-interest income are as follows:

Gain on Investment Activities:
The $1.6 billion increase in this line item was driven primarily by a combination of gains on our traditional proprietary trading portfolio, and those associated with exposure to alternative investments, specifically real estate and private equity through equity call options. This line item has displayed significant resilience against the backdrop of persistent inflation and the concomitant central bank policy actions that continue to challenge returns on traditional marketable securities. Therefore, our trading strategy with respect to our traditional proprietary trading portfolio continues to emphasize maintaining ample amounts of liquidity so that we can be positioned to take advantage of significant mispricing of securities. The addition of alternative investment exposures to our portfolio during preceding quarters has served us well as they provided revenue diversification against the negative effects of the year-to-date declines that have generally been seen in the prices of traditional asset classes.

Fees & Commission Income:
Fees and commission income declined by 7% to $2.5 billion relative to the corresponding FY 2021 result of $2.7 billion. This line item is comprised substantially of fees generated from our asset management and investment banking business lines. Revenues in this category declined primarily due to lower performance-based management fees in the asset management business. The outturn for the comparative period last year benefitted materially from the robust recovery of certain asset classes following the disruptions caused by the COVID-19 pandemic. Notwithstanding, the Group will continue its efforts to grow assets under management and capital markets activity through consistent deepening of our capabilities as well as building liquidity to fund investment banking deals.

Foreign Exchange (“FX”) Trading and Translation Gains:
The Group registered foreign exchange trading and translation gains of $602 million in the period, which is a $1.1 billion reduction or 66% relative to the corresponding period in FY 2021. The decrease was attributable to the effects of continued volatility experienced in the local foreign exchange market during the period.

Operating Expenses:

Non-interest Expenses for the nine-months of FY 2022 rose by 11% to $2.7 billion versus $2.4 billion for the corresponding FY 2021 period. The YOY rise in expenses is driven by increases in staff costs (by $233 million or 25%) and administrative expenses (by $79 million or 6%), while the Group’s expected credit losses (“ECL”) decreased to $93 million relative to $138 million compared to the same 2021 period, due largely to changes in the company’s overall portfolio mix coupled with the adjustment of assumptions underpinning the ECL calculations.

The increase in operating expenses reflects investment in the capabilities required to execute on the strategic growth initiatives that we have communicated. Furthermore, despite the rise in operating expenses, the Group’s efficiency ratio remained fairly steady at 37% versus 36% for the corresponding FY 2021 period.

Our year-to-date performance was achieved in the continued context of the inflation inducing impacts of supply-chain and labour market dynamics, which were exacerbated by the Ukraine/Russia conflict; and the corresponding price disrupting and margin tightening effects of global interest rate policy responses.

Balance Sheet Highlights

As at June 2022 the company had a combined increase of $18.1 billion in funding from repurchase agreements and secured investment notes relative to June 2021.

This, along with the net $7.1 billion increase in shareholder’s equity, largely funded the $25.7 billion growth in Barita’s asset base. Some of the key line items on the balance sheet are discussed in brief below:

Assets

Total Assets:
Barita’s total assets stood at $110.0 billion as at June 2022, representing a $25.8 billion or 31% increase over June 2021. This increase is largely the result of a $14.8 billion growth in marketable securities and $10.0 billion in loan receivables.

Pledged Assets and Marketable Securities:
Pledged Assets and Marketable Securities, combined, grew by $18.5 billion or 30% to $80.0 billion to account for 73% of the Company’s balance sheet as at June 2022. These lines represent substantively the Company’s investment portfolio, which is largely comprised of credit assets to include, local, regional & international government and corporate bonds.

Loans Receivables:
Barita’s exposures to loan receivables increased by $10.0 billion or 347% to $12.9 billion. Barita’s exposure to loans is largely comprised of secured credit facilities, including margin loans, which are extended to our clients.

Liabilities:

Total Liabilities: To fund the increase in total assets, we grew our total liabilities YOY by 35% or $18.6 billion to $72.6 billion.

Repurchase Agreements: The Company’s funding from Repurchase Agreements rose by $8.4 billion or 18% to $54.6 billion as of June 2022 which was 75% of the Company’s liabilities. Secured investment notes rose by $9.3 billion or 196% to $14.1 billion, which represented 19% of the company’s total liabilities.

Shareholders’ Equity:
The equity base of the Group grew significantly YOY, rising by 31% or $8.8 billion to close the period at $37.5 billion.

The outturn in shareholders’ equity was largely a result of the following:
• The Company’s September 2021 APO, which increased share capital by $10.8 billion (partly offset by treasury share transactions);
• An increase in retained earnings, net of dividends declared during the period; and a $2.3 billion reduction in fair value reserve.

The extent of negative fair value reserves was a function of the market volatility during the quarter, which drove fair value changes in key fixed income assets. Due to the asset diversification strategy being pursued by us, the reduction in fair value reserves was relatively moderate, at 6% of our capital base.

Capitalization, Stress Testing & Resilience to Current Headwinds

Barita continues to maintain robust capital and liquidity positions, both of which have demonstrated significant strength and resilience to withstand adverse market conditions. This is even more relevant in the current rising interest rate environment, which continues to place downward pressure on duration sensitive fixed income asset prices.

Capital management is integral to our risk management and, as such, we frequently subject our capital metrics to robust stress testing as we deploy our strategy and plan for the future. We remained well above regulatory requirements, with a capital to risk weighted asset ratio of 44%, more than 4 times the 10% requirement; and remained well above these requirements under our internal stress tests. This, combined with our underweight exposure to high beta securities, makes us significantly resilient to market downturns and has positioned us well to execute on key strategies, while allowing us to take opportunities that may arise.

Closing Remarks
In our 2020 and 2021 prospectuses we outlined our intended use of funds. Thus far:

• More than $3 billion has been directed to support various investment banking type transactions, which also straddle other areas of the business such as alternatives and structured finance

• The overhaul of the real estate Fund and the seeding of MJR accounts for approximately $10 billion

• Our private credit outlay has been approximately $5 billion

• The technology upgrade, to which we have committed approximately $850 million, is on-course

Barita continues to prospect for opportunities to expand its local and regional footprint.

Furthermore, we continue to focus on generating significant returns, particularly for our minority shareholders, who have seen a more than 1,175% increase in the value of their shareholding between September 2018 and June 2022. Meanwhile, the governance that serves to safeguard the interest of all our shareholders and other stakeholders, has also been deliberately strengthened, culminating in our Corporate Governance Index score increasing from “CC” to “A” during the same period.

We are confident that the strategic initiatives that we are pursuing will continue to redound to the benefit of all our shareholders, and more broadly all our stakeholders. I’d like to take this opportunity to also thank our various stakeholders for their continued support and, indeed their contribution to our success.

The confidence demonstrated by the investing public through our multiple capital raising activities, and the confidence demonstrated by our clients; complemented by the outstanding output of our talented and dedicated staff have been key tenets of our success. Our commitment to you is to continue working tirelessly to maintain your confidence as we revolutionize your relationship with money and deliver differential value to you, our shareholders and clients.

More Information CLICK HERE

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Businessuite Markets

The Strategic Importance of Investor Communication and Recommendations for Caribbean Listed Companies

By embracing these practices, Caribbean listed companies can foster stronger relationships with investors, enhance market perceptions, and potentially realize higher valuations that reflect their true intrinsic value.

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Effective communication with investors is not merely a compliance exercise; it’s a strategic imperative that influences a company’s market valuation and access to capital.

Key benefits include:

Enhanced Market Valuation: Transparent and consistent communication reduces information asymmetry, leading to improved investor confidence and potentially higher stock valuations.

Improved Liquidity: Engaged investors are more likely to trade shares, increasing liquidity and reducing volatility.

Broader Investor Base: Proactive communication attracts a diverse range of investors, including retail investors who can provide stability and advocacy for the company.

Resilience During Crises: Companies that maintain open lines of communication are better positioned to navigate challenges and retain investor trust during turbulent times.

Global Trends in Investor Relations
Internationally, companies are adopting innovative strategies to engage with investors:

1. Digital Engagement Platforms
Companies are leveraging digital tools to provide real-time updates and interactive content:
Investor Portals: Secure platforms offering access to financial reports, updates, and company news.
Webinars and Virtual Events: Facilitating direct interaction between management and investors.
Social Media: Utilizing platforms like LinkedIn, Twitter, and YouTube to disseminate information and engage with a broader audience.

2. Personalized Communication
Tailoring messages to specific investor segments enhances relevance and engagement:

Segmented Reporting: Providing information tailored to the interests of different investor groups.
Interactive Content: Using videos, infographics, and interactive reports to make complex information more accessible.

3. Emphasis on ESG Reporting
Environmental, Social, and Governance (ESG) factors are increasingly influencing investment decisions:

Transparent ESG Disclosures: Providing comprehensive reports on ESG initiatives and performance.

Integrated Reporting: Combining financial and non-financial information to present a holistic view of the company’s performance and strategy.

Recommendations for  Caribbean Listed Companies
To bridge the communication gap and unlock shareholder value, Caribbean listed companies should consider the following strategies:

Establish Robust Investor Relations Programs: Develop dedicated IR teams or functions responsible for managing investor communications and relationships.

Leverage Digital Channels: Utilize websites, social media, and email newsletters to provide timely and accessible information to investors.

Host Regular Investor Events: Organize webinars, virtual town halls, and Q&A sessions to engage directly with investors and address their concerns.

Enhance Transparency and Disclosure: Provide clear, comprehensive, and timely information on financial performance, strategic initiatives, and ESG efforts.

Solicit and Act on Investor Feedback: Implement mechanisms to gather investor input and demonstrate responsiveness to their concerns and suggestions.

Adopt Integrated Reporting Practices: Combine financial and non-financial reporting to present a cohesive narrative of the company’s value creation strategy.

By embracing these practices, Caribbean listed companies can foster stronger relationships with investors, enhance market perceptions, and potentially realize higher valuations that reflect their true intrinsic value.

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Businessuite Markets

Spur Tree Spices Projects Growth from Product Innovation, Domestic Sales, and E-Commerce Scaling

The Company expects continued growth in the traditional product segments, supported by the rollout of new products, increased domestic sales through expanded retail penetration and stronger trade execution, and the scaling of its Amazon and e-commerce presence through optimised listings, targeted advertising, and improved fulfilment efficiency.

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Albert Bailey Chief Executive Officer Has Released The Following Report On The Financial Performance Of Spur Tree Spices Jamaica Limited For The First Quarter Ended March 31, 2025, Including The Presentation Of Unaudited Financial Statements Prepared In Accordance With International Financial Reporting Standards

The Company’s overall results for the first quarter were shaped by several ongoing challenges in the agro-processing sector. These challenges disproportionately impacted the subsidiaries. However, amidst these challenges, there were many positive indicators, including continued double-digit revenue growth in the traditional seasonings and sauces segment of the business. While profit performance for the quarter declined compared to the corresponding period for 2024, the company remains on track for a successful year. In the coming months, all indicators point to the normalisation of key raw material supply, including ackee. These factors, combined with expected growth from new product segments and continued expansion of traditional product categories, put the company on a firm path to continued success.

Consolidated revenue for the first quarter totalled J$336.39 million, compared to J$394.49 million in the corresponding period 2024, representing a 17.3% decline. This was primarily due to continued constraints in the supply of ackee, a key raw material for the Company’s subsidiaries. Despite this challenge, the Company recorded notable growth in several categories, including seasonings, sauces, and dried products, supported by expanded distribution in local and export markets, strong consumer demand, and the successful launch of new product lines.

Cost of Sales for the period amounted to J$245.86 million, or 73.09% of revenue, compared to J$287.62 million (72.91%) in Q1 2024. The slight increase in the cost-to-revenue ratio reflects the shift in product mix, as the Company adjusted production output to include a higher proportion of lower-margin items in response to the limited availability of ackee. Though not ideal, these measures enabled the business to sustain production and meet customer demand amidst raw material constraints.

Gross Profit for the quarter was J$90.53 million, down from J$106.86 million in the corresponding period of the previous year, a 15.3% decline. This was driven by the revenue reduction and a greater contribution from lower-margin substitute products produced during the ackee shortfall.

Nonetheless, the Company remains optimistic about the recovery of gross margins in the coming quarters. Continued rollout of new and value-added products across core and subsidiary operations is expected to improve the overall margin profile. In addition, the gradual recovery of ackee supply, enabled by targeted investments in farming and expanded sourcing, is expected to restore availability and strengthen the Company’s higher-margin revenue base. Together with ongoing cost-efficiency measures, these strategic actions are anticipated to drive improved profitability as the year progresses.

Administrative Expenses for the quarter amounted to J$69.62 million, representing a 2.5% reduction compared to J$71.38 million in Q1 2024. This reflects the Company’s disciplined approach to cost management and operational efficiency while ensuring that critical support functions remain in place to advance strategic objectives.

Finance Costs rose to J$12.05 million, compared to J$9.54 million in the same period last year, an increase of 26.3%. This was primarily due to interest on an additional J$55 million loan secured to support Spur Tree’s farming operations. This investment is key to the Company’s broader strategy to stabilise raw material supply and ensure production continuity.

Net Profit attributable to the Company totalled J$12.00 million, down from J$28.18 million in Q1 2024, representing a 57.3% decline. The result was mainly impacted by the continued raw material shortages affecting subsidiary operations, which offset gains achieved through product expansion and cost containment elsewhere in the Company.

At the end of the reporting period, Cash and Cash Equivalents stood at $131.7 million, reflecting a 26% increase over the $104.4 million reported for the corresponding period in 2024. Total Assets increased to $1.68 billion, up from $1.56 billion, representing an 8% yearover-year improvement. Shareholders’ Equity also strengthened, rising by 9% to $1.03 billion compared to $948 million in the prior year.

Although the consolidated performance fell below expectations for the quarter, the Company remains confident in its long-term strategy. Investments in farming, supply chain resilience, and innovation are expected to yield increasing benefits in the quarters ahead, supporting recovery and future growth.

Outlook

The outlook for 2025 remains positive despite the temporary headwinds experienced in the first quarter. The Company continues to demonstrate resilience and growth in its core operations, with strong performance across established and new product categories, supported by increased market penetration locally and internationally.

The Company expects continued growth in the traditional product segments, supported by the rollout of new products, increased domestic sales through expanded retail penetration and stronger trade execution, and the scaling of its Amazon and e-commerce presence through optimised listings, targeted advertising, and improved fulfilment efficiency.

The Company’s subsidiaries are actively pursuing product diversification strategies to safeguard the ackee supply, which we expect to normalise in the coming months. The Company is also broadening its portfolio to include other complementary items. This will lead to a return to an overall profit position by the end of the year.

Investment in direct farming continues to be a cornerstone of the Company’s strategy. It enhances the availability of raw materials and strengthens supply chain resilience. These efforts are expected to increase value throughout the year, supporting operational stability and margin recovery.

With these initiatives firmly in motion, the Company is well-positioned to build momentum over the coming quarters. Management remains focused on delivering sustainable growth and creating long-term value for all stakeholders.

For More Information CLICK HERE

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Mailpac Group Doubles Q1 Revenue to $716.4M, Driven by My Cart Express Integration

The Company delivered a strong performance for the first quarter of the financial year, with total revenues of $716.4 million, representing a 94% increase over the J$368.5 million reported for the corresponding period in 2024. This growth was primarily driven by the integration of My Cart Express in reporting.

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Khary Robinson Executive Chairman, Mailpac Group Limited has released the following Unaudited Financial Statements for the First Quarter Ended March 31, 2025

Throughout the quarter, Mailpac focused on improving service delivery, and increasing customer conversions.

Despite an increasingly competitive marketplace and external factors threatening efficiencies, our financial performance reflected the impact of our continued focus on long-term growth and sustainability, delivering superb results for the period.

Financial Performance: The Company delivered a strong performance for the first quarter of the financial year, with total revenues of $716.4 million, representing a 94% increase over the J$368.5 million reported for the corresponding period in 2024. This growth was primarily driven by the integration of My Cart Express in reporting. Gross profit for the quarter amounted to $388.7 million, compared to $197.9 million for the same period last year, reflecting improved margins and operational efficiencies. This improvement is attributed to increased operational efficiencies and negotiated cost reductions achieved through economies of scale. The Company recorded net profit of $69.7 million of Q1 2025, an increase from $50.1 million in Q1 2024, representing a 39% year-over-year increase. Strategic Developments and

Financial Position: During the quarter, Mailpac continued to make significant capital investment in technology infrastructure and logistics to support long-term scalability and development of service offerings, Additionally, we continue to benefit from the tax remission under the Jamaica Stock Exchange Junior Market rules, now at 50%, following the completion of the initial 5-year full remission period in December 2024.

As at March 31, 2025, Mailpac Group Limited reported total assets of $2.3 billion, up from $626.3 million as at March 31, 2024. The increase is largely attributed to the rise in intangible assets following the acquisition and increased right-of-use assets.

Shareholders’ equity grew to $806.2 million, compared to $537.9 million in the prior year. Outlook: The Company remains focused on growth through innovation, strategic partnerships, and enhanced customer experiences. With an increasingly digital consumer landscape and our expanding footprint, we are confident in delivering continued value to shareholders and stakeholders alike. The Board of Directors and management team would like to express our appreciation to our shareholders, customers, employees and partners for their continued support. We remain committed to delivering value for all out stakeholders and thank you for your unwavering trust in Mailpac.

For More Information CLICK HERE

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Kingston Properties Reports Robust Q1 Growth in Core Revenues and Net Income

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Kevin G. Richards Chief Executive Officer Of Kingston Properties Limited (KPREIT) Has Released The Following Unaudited Financial Statements For The First Quarter Ended March 31, 2025

The Group delivered a robust performance for the first quarter of the year with solid growth in core operating revenues and net income. This positive performance reflects the strategic expansion of our investment property portfolio and effective property management, which have both contributed to higher rental rates and increased property values. We expanded our footprint in the United Kingdom (UK) market while constantly evaluating the existing portfolio for optimization opportunities. We have deployed cash resources into high yielding investment assets which is now driving improved operating results and we have officially commenced construction of our first greenfield warehouse project at Rosseau Road. Additionally, the Group’s successful efforts to re-let vacant spaces resulted in a 92% occupancy rate during the reporting period, being an 11% improvement on occupancy at the start of the year. We continue to benefit from a resilient tenant base which operates across a variety of industries including financial, warehousing and logistics, manufacturing, and government services.

INCOME STATEMENT

Group rental income was $1.38 million for the three months ending March 31, 2025, which represents a 24% increase over the same prior year period. The addition of 2530 Aztec West Business Park in the UK and Duke Street buildings in Jamaica, along with improved rental rates on some properties across the portfolio, are the primary factors impacting the year over year growth in rental income. Group operating expenses for 1Q2025, which includes administrative and property management expenses, increased to $583,539 compared to $389,089 in 2024. This increase is attributable to higher staff costs, increased professional fees associated with the expansion of the UK portfolio, as well as broker fees and the legal cost of letting vacant spaces in Jamaica and Cayman Islands.

Results of operating activities before other income of $799,769 for 1Q2025, reflects an 11% improvement over the $722,901 during the same prior year quarter. Additionally, having reclassified an asset for disposal, we recognised a fair value gain of $371,908 during the period, resulting in Group operating profits of $1.3 million for 1Q2025, which is slightly ahead of the same prior year period.

Net Finance Cost (NFC) amounted to $392,597 compared to $332,551 in 1Q2024 due to the growth in our debt portfolio, which funded the increase in assets under management. The Group continues to secure financing on favourable terms to take advantage of prime investment opportunities which improves our operating performance.

After adjusting for a reduction in deferred taxes liabilities, Profit after tax in 1Q2025 amounted to $1,001,437 million versus $946,357 for the first quarter of 2024, representing an increase of 6% YoY.

Funds from operations (FFO) for the first three months of the year moved to $519,851 compared to $336,081 for the same period in 2024, yielding growth in a key liquidity performance indicator, of approximately 55% YOY.

GROUP BALANCE SHEET

Following the 2H2024 acquisitions of the Duke Street properties and 2530 Aztec West along with improvements in the fair value of our assets at the end of FY2024, the Group acquired a second office building in Dorking Business Park, UK on March 31, 2025. Consequently, the value of investment assets grew by 26% YoY to $85.63 million versus the $67.99 million as of the corresponding date in 2024. Additionally, total assets under management grew by 24% to $88.38 million compared to $71.55 million last year. Cash holdings declined from $2.45 million in prior year to $1.35 million resulting from the deployment of cash into; the acquisition of income generating properties; upgrading existing assets and; mobilizing a greenfield development. During the first quarter of 2025, the Group commenced construction of the Rousseau Road warehouse complex, while we reclassified another property to asset held for sale, as the Group continues to optimise the portfolio for maximum returns and to access growth opportunities.

Total loans payable at the end of the reporting period amounted to $34.24 million, in comparison to $21.90 million in 2024. The increased loan balance, which is primarily collateralized bank financing, was deployed for the expansion of our operating asset base and property improvements. Our current loan portfolio is denominated both in United States and Jamaica dollars from our financial partners in Jamaica and the Cayman Islands. Despite the increase in total loans payable, the Group is relatively underleveraged, with total loans payable being 39% of total assets and debt to equity of 65%. We continue to maintain conservative debt ratios as part of our risk management strategy with options to refinance our debts when the market becomes more favourable.

Total Equity increased by 8% year on year, moving from $$48.82 million in 2024 to $52.81 million in 2025. The increase in equity was driven by improvements in our property values at the end of financial year 2024 and higher net profits generated in first quarter of 2025, resulting in a book value per share of US$0.0597 (J$9.46) compared to US$0.0552 (J$8.54) in 2024.

SUMMARY AND OUTLOOK

Our strategy to seek out risk-adjusted, value-add assets continues to bear fruit as demonstrated by our compounded annual growth rate of net profits and book value per share over the last six years of 6.1% and 7.3%, respectively. Our acquisition of Building 4, Dorking Business Park at the end of the quarter will continue to boost the Group’s performance this year with increased rental revenue and the potential benefit of currency diversification. Geographic flexibility will remain a core focus of our strategy, and we will actively explore commercial property opportunities in locations that satisfy our core strategic imperatives of stable democracies, strong property law rules, freely convertible currencies and competitive yields. Although the US Fed, at its last meeting, held interest rates steady, the Bank of England reduced interest rates, and we believe this is a positive sign for UK real estate.

Our first solo greenfield project in Jamaica located on Rousseau Road in Kingston, continues in earnest and we expect the 14 mini-warehouse units to be ready for leasing in January 2026. We will also continue our strategy of monetizing mature assets in our portfolio and deploying the proceeds from those transactions into acquiring larger, higher-yielding assets with diverse tenant bases to strengthen the Group’s resilience and grow core earnings.

In tandem with our operational initiatives, we remain deeply committed to community engagement and sustainability. More of our properties are being equipped with energy-efficient and waste-reduction systems as we work toward achieving fully green operations across our portfolio.

For More Information CLICK HERE

 

 

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Seprod’s Strong 31.9% Revenue Growth Tempered by Higher Finance Costs from Regional Expansion

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Q1 Performance (January-March 2025)

This report presents the consolidated financial statements for Seprod Limited for the three (3) months ended 31 March 2025 (Q1), it provides a comprehensive overview of the company’s financial position, performance, and cash flows. The data is presented in Jamaica dollars and is unaudited. The analysis covers Q1 performance with a comparison to the same period in 2024.
Richard Pandohie  Group Chief Executive Officer Seprod Group of Companies

Revenue and Profitability Analysis:

 Total revenue for Q1 2025 was $37.7 billion, representing a 31.9% increase from $28.6 billion in Q1 2024.

 Direct expenses increased proportionately from $21.1 billion to $27.6 billion in 2025, resulting in a gross profit of $10.1 billion (2024: $75 billion).

 The gross profit margin improved to 26.7% in Q1 2025 from 26.2% in Q1 2024, indicative of management striving for effective cost control despite rising expenses.

 Operating profit remained consistent with the prior year, ending the quarter at $2.4 billion.

 Finance costs increased significantly to $1.15 billion due to higher debt level used to finance strategic acquisitions.

 Profit before taxation stood at $1.36 billion, a decrease of 22% from the 2024 comparative period.

 After accounting for taxation, the net profit from continuing operations was $867 million, a decline from $1.23 billion in Q1 2024, attributed mainly to increased finance costs.

Asset and Equity Analysis:

 Total assets increased from $103.1 billion as of March 2024, to $133.4 billion as of March 2025, an increase of 29.4%.

 Total liabilities increased from $62.8 billion to $85.7 billion, reflecting higher current and long-term liabilities.

 Total equity attributable to shareholders increased to $30.2 billion.

 No dividends were declared in Q1, but this was a timing issue, as the Board approved a dividend of $0.605 per share at a meeting held on April 2025, which is the same as the amount paid in Q1 2024 ($440 million). The company is expected to maintain its strong dividend payout ratio in 2025.

 Cash used in investing activities was $618 million, up from $440 million in prior year. This was mainly for capital expenditure. The revenue growth was strong at 31.9% but this did not flow all the way to the bottom-line due to cost pressure, particularly in finance costs used to realize the Group’s substantial acquisition activities as we build out a regional distribution platform.

The significant increase in assets reflects our increased scale and positions us for continued future growth. Management is very focused on strategies to increase productivity, enhance operating efficiency and reduce finance costs. Our base is strong and the growth trajectory will continue to be positive. We are confident that the bottom-line will begin to reflect the strong top-line in short order. We thank you for your support.

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