Businessuite Markets
Guardian Holdings Reporting Half Year Improved EPS Of TT$1.08, Versus TT$0.55 For 2022, Proposing Interim Dividend Of TT$0.22
Robert Almeida Chairman For Guardian Holdings Limited Has Released His First Quarterly Chairman’s Report Covering The Half-Year Financial Performance Of The Group Following Appointment As Chairman.
For the half year ended 30th June, 2023, the Group delivered strong results from continued growth across our operations in the English and Dutch Caribbean.
Group profit attributable to equity shareholders amounted to $251 million, an increase of $123 million or 95% over the corresponding period last year.
Earnings per share increased to $1.08 versus $0.55 in the comparative period last year.
Our results benefited from year-over-year revenue growth as well as fair value gains generated in the current year versus losses in the prior year. This was partially offset by increasing reinsurance costs, higher operating expenses due to sales activities and IFRS 17 implementation as well as an increase in insurance finance expenses partially due to the impact of interest rate movements on liabilities and higher taxation expense.
Both Life, Health and Pension (LHP) and Property and Casualty (P&C) segments contributed favourably to the Group’s results, as they continue to build strong momentum. Insurance service results increased by $77 million or 29% from $268 million in the prior year to $345 million in the current period. Overall insurance revenue, net of claims and insurance related expenses, increased by $183 million partially offset by increased reinsurance expenses of $106 million due to higher reinsurance costs from P&C lines.
Net income from investing activities also increased by $601 million over the prior year of $268 million. The net change from fair value movements over prior year were gains of $572 million mainly from government securities, corporate bonds and international equities.
Foreign exchange gains in current year versus prior year losses also contributed to the favourable results. Your Group continues to closely monitor volatile markets and rebalance portfolios as necessary.
Net insurance finance expenses increased by $446 million over the prior year mainly from our LHP segment. Among other items, finance expenses include the impact of interest rate movements and returns earned by our policyholders who hold insurance products with an investment component.
For the first half of the current year, the impact of those interest rate movements was less favourable to the Group’s insurance liabilities. However, it is worthy to note that the impact was favourable for our clients as they earned higher investment income in this period due to growth in the policyholders’ underlying funds, which resulted in higher expenses for the Group.
Fees and commissions from brokerage activities increased by $8 million or 10% year-on-year mainly due to brokerage activities in the Dutch Caribbean.
Our Asset Management segment also reported growth in after-tax profit during the half-year of 41% over the prior year. The Group continues to focus efforts on developing this segment through third-party business and product offerings.
Operating expenses increased by $47 million or 13% year-over-year and are mainly related to investment in our people, sale-related expenses, growth strategies across the business segments, coupled with continued investment in our IFRS 17 implementation activities.
Your Group remains focused on optimising performance, capitalising on emerging opportunities, while at the same time managing and mitigating known and emerging risks.
Based on the overall performance of the half year under review, your Directors have proposed an interim dividend of 22 cents (2022: 20 cents) to be paid to shareholders on record as at 21st August, 2023 when the register of members will be closed for this purpose.
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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
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