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JMMB Group Posts Net Profit Of J$1.97B And EPS Of J$0.98 For Three Months Ended 30 June 2022.

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Keith P. Duncan Group Chief Executive Officer JMMB Group Limited has released the following Three Months Highlights for the period ended 30 June 2022 (Expressed in Jamaican dollars unless otherwise indicated)

Performance Highlights
• Net Operating Revenue J$6.55 billion, down 5%
• Net Interest Income J$2.91 billion, up 2%
• Net Profit J$1.97 billion, up 2%
• Earnings per Stock Unit J$0.98, up J$0.10

Group CEO’S Commentary

The JMMB Group posted solid results in the first quarter of its thirtieth year of operations. The Group continues to derive significant benefits from the consistent execution of its diversification strategy. The quarter’s performance is largely underpinned by the improved performance of key business lines in Trinidad and Tobago as well as the contribution of J$1.26 billion from its associated company, Sagicor Financial Company Limited (SFC).

Having come through the short to medium term shocks brought on by the pandemic over the last two years, the Group has managed to successfully pivot to a focus on growth in its major key performance indicators. The current financial year is now however, contextualized by rising global interest rate and an ongoing geopolitical crisis which has exacerbated global supply chain disruptions and commodity prices.

With this backdrop, the Group’s focus has been refined as “smart growth” which reflects driving growth from core operations and includes deriving the most from its operating territories which are rebounding and/or experiencing faster growth. While rising interest have negatively impacted gains on securities trading, the Group has reflected positive growth from net interest income, foreign exchange trading, income from capital markets and collective investment schemes as our clients continue to demonstrate confidence in our solutions and leverage our expertise.

Smart Growth – Revenue & Geographic Diversification, Strong Capital Management

The Group’s “smart growth” strategy now includes an emphasis on strategic revenue diversification, strong capital management, and growing core activities in key business lines. This has thus included a shift to the utilization of less capital, a focus on off balance sheet funds and deriving core revenue from FX gains, capital markets and the banking business line.

Additionally, the Group’s year over year first quarter growth in net profit was due in part to the 23.33% stake in SFC.

This acquisition continues to deliver considerable value to the Group and underscores the efficacy of the Group’ inorganic growth strategy.

Also contributing to this performance is the Group’s operations in the Dominican Republic which contributed 25% of operating revenue. This performance again underscores the continued value of the market and the Group’s continued and aggressive execution of its diversification strategy there.

In keeping with this is the most recent acquisition in the market by JMMB Holding Company SRL’s, a subsidiary of JMMB Group Limited, which acquired 100% shareholding in Dominican Republic-based Banco Múltiple Bell Bank SA, marking the Group’s entry into the market’s commercial banking sector. With this acquisition, the Group’s operations in this territory are now rounded out to include a full range of investment management services, pension funds management and commercial banking services.

Through this, the Group is now to set to further deepen its presence in the market inclusive of the roll out of a full range of online banking as well as niche card and payment solutions and services.

In the upcoming quarters, focus on geographic diversification will remain with sharp focus on Trinidad and Tobago, where the operating environment is currently more accommodative to growth. Business line diversification will also continue to be important with the fund management business line specifically targeted for growth through new and existing mutual fund products to support further diversification and financial goal attainment for clients.

Additionally, there will be a strategic focus on capital efficient growth from lending as well as opportunistic growth in the investment portfolio as well as an emphasis on revenue diversification as the Group expands its payments solutions suite with the roll out of e-commerce and niche card solutions in the upcoming quarter. With this, the Group expects to continue to deliver solid results and value to stakeholders for the remainder of the financial year.

Group Financial Performance

Net Operating Revenue

The JMMB Group posted net operating revenue of J$6.55 billion for the three months ended June 30, 2022, reflecting a decline of 5%. The operating environment was quite challenging when compared to the prior period. For one, there was rising inflation which reflected the war in Ukraine and the attendant increase in geo-political uncertainty; supply chain disruptions as well as other Covid-related factors. Central banks across the world, as a part of their inflation targeting regime, have responded by increasing interest rate and reducing market liquidity. This had a particularly negative effect on trading gains.

Trading gains fell by 58% to J$1B as given higher interest rates, investors were de-risking and as a result there was reduced demand for emerging market assets. Consequently, asset prices fell and trading activity was reduced. This was contrary to the prior period, then investor sentiment was high and interest rates were low.

Therefore, investors were in search of yields and there was high demand for emerging market assets. All other major revenue line items increased, especially fees and commission income. This was facilitated by increased economic activity as all the territories in which we operate are in recovery mode. In fact, the Dominican Republic has recovered to pre-pandemic levels. Thus, fees and commission income were 75% higher at J$1.67 billion and reflected significant growth in managed funds and collective investment schemes across the Group. Our clients continue to be reassured by our expertise and our dedication to ensuring that they meet their financial life goals. Further, our clients continue to demonstrate confidence in the value of solutions and services which was evidenced by strong growth in the loan and investment portfolios. Thus, net interest income moved from J$2.86 billion to J$2.91 billion.

Segment Contribution

The Banking & Related Services segment contributed J$3.23 billion or 50% of net operating revenue. This represented a 32% increase when compared to the prior period and reflected strong growth in the loan book which translated into increased net interest income. Also, there were higher trading gains and fees.

The Financial and Related Services segment contributed J$3.26 billion or 49% of net operating revenue and reflected a decline of 25%. This largely reflected lower trading gains.

Operating Efficiency

Operating expenses moved from J$4.72 billion to J$5.32 billion as we continued to grow in a cost-efficient manner. This included inflationary increases as well as strategic spend related to our longer-term initiatives aimed at improving the posture and positioning of the Group. Thus, operational efficiency moved from 69% to 81%. Nevertheless, we continued to focus on projects to cause scale and efficiency and thereby contribute to long term shareholder value.

Group Financial Position

Total Assets

At the end of the reporting period, the JMMB Group’s asset base totalled J$624.89 billion, up 2% relative to the start of the financial year. This was mainly on account of a larger loan portfolio which grew by 7% to J$152.5 billion. The credit quality of the loan portfolio continued to be comparable to international standards and we continue to maintain enhanced monitoring to mitigate against possible deterioration in credit quality.

Growth in the asset base over the three-month period was funded in part by increases in multilateral funding and repos. An additional tranche of funding was received from IDB Invest, a member of the Inter-American Development Bank Group. This is earmarked for the SME segment and will improve the capacity of the JMMB Bank (JA) to continue building its SME solutions suite. Also, repos grew by 2% to J$305.49 billion.

Capital

Over the three-month period, shareholders’ equity decreased by 10% to J$50.67 billion. Despite posting significant profit for Q1, this was completely offset by further decline in investment revaluation reserve. For the current reporting period, bond prices and by extension investment revaluation reserve continued to be negatively impacted by rising interest rates, increased global uncertainty, rising commodity prices as well as supply chain disruptions.

Nevertheless, the Group continues to be adequately capitalized and all individually regulated companies within the Group continues to exceed their regulatory capital requirements. The performance of the major subsidiaries is shown
in the table above.

Off-Balance Sheet Funds under Management

In alignment with the Group’s strategy to provide complete, customized financial solutions for each client, we experienced growth in our off-balance sheet products which include pension funds, unit trusts and money market funds.
The total invested in off-balance sheet products as at the end of June 2022 stood at J$190.08 billion compared to J$170.68 billion as at end of June 2021.

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CAC 2000 Reporting A 41% Improvement In Net Income For Period Ending July 31, 2024.

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Gia Abraham Chief Executive Officer for CAC 2000 has released the following Unaudited Third Quarter results for period ending July 31, 2024

The Results:
Year -to-date we saw an increase of 18% in Sales for the period ending July 31, 2024, over the same period last year ($752,812,566 vs. $637,763,300), along with a 41% or $28,980,191 improvement in our net income. We continue to contain our overall operating expenses by 1.8% or $4,416,661 over the same period last year.

Whilst we are still experiencing longer shipment times due to the movement of manufacturing to China, we have been able to realize a reduction in our inventory days from 398 days to 300 days, in our debtor days from 225 to 206 days, as well as a decrease in our creditor days from 108 days to 77 days over the same period last year.

Retail Update
We continue to utilize our retail store located at 3U Village Plaza to improve the delivery of product offerings and services to our customers, while building the Team in Montego Bay, which is becoming the hub for the projects we are presently executing on that side of the island. As a company we are encouraged by this positive trajectory.

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PBS Expects 2024 Revenue, EBITDA And Profitability To Closely Align With Full Year Budgetary Expectations.

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Pedro M. París C. Director and Group CEO For Productive Business Solutions Limited Has Released The Following Unaudited Interim Report For Q1 2024

Q1 2024 Financial Performance Overview
In the first quarter of 2024, Productive Business Solutions (PBS) reported revenues of US$65.9 million, a decrease of US$21.6 million compared to the same period in 2023.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was US$8.5 million, down from US$10.2 million in the first quarter of the previous year.

Additionally, our Profit After Tax (PAT) for the first quarter was US$0.4 million, as compared to US$1.7 million during the corresponding period in 2023.

Notably, our first quarter results in 2023 were impacted by a large transaction in which PBS provided laptops to the government in El Salvador. The transaction
produced a significant revenue contribution to PBS in that period but carried a lower than-average gross margin. As a result, PBS recorded higher gross profit in in Q1 2024 relative to Q1 2023 despite a reduction in revenue. PBS’ gross margin for the first quarter of 2024 improved to 35.5% from 26.5%, which is more representative of our business without the influence of any large, non-recurring sales.

Historically, the fourth quarter represents the strongest financial period for PBS, while the first quarter typically exhibits the lowest earnings. Our performance in Q1 2024 reflects this seasonal trend.

Strategic Acquisition Announcement
We are delighted to share a significant milestone in our company’s journey. During this quarter, we successfully initiated the strategic acquisition of Xerox operations in Ecuador and Peru and expect to close the transaction by the end of the second quarter of 2024. This acquisition is a testament to our commitment to expanding our market presence and enhancing our service offerings in the Latin American region.

The integration of Xerox operations in these key markets strengthens our capabilities in delivering expanded product/service and industry-leading solutions to a broader client base and offers a deeper Latin American footprint for our regional and global customers. We expect that this transaction will close in the coming months subject to regulatory approvals.

PBS expects to file its Audited Financial Statements for 2023 by June 30, 2024. The audit has been delayed as a result of accounting corrections which impact revenue, cost of goods sold, and contract assets primarily in periods before 2023.

Outlook

Our company’s pipeline of sales opportunities for the remainder of the year is strong.
We expect PBS’ 2024 revenue, EBITDA and profitability to closely align with our full year budgetary expectations.

PBS connects the largest enterprise software companies in the world to the leading firms and governments in our region. Our business is increasingly diversified by country, customer and supplier. Moreover, our growth reflects the enduring longterm trends of digital transformation to meet the needs of businesses and consumers. As we look ahead, we expect PBS to continue its trajectory of profitable growth.

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Main Event Entertainment Group Reporting 14% Drop In Nine Months Gross Profits

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Solomon Sharpe,  Chief Executive Officer for Main Event Entertainment Group Limited is reporting that the company recorded revenues of $440.064 million for the three months ended 31 July 2024 relative to the $428.056 million earned in the same period in 2023. This represents an increase of $12.007 million or 3% over the corresponding period of 2023. Despite the improvement in our year-over-year third quarter performance, the company saw a decrease of 10% to $1,426.391 million in its revenues year-to-date relative to the corresponding period in 2023 of $1.586.931 million.

Gross profit for the quarter was $205.678 million. Compared to the third quarter of 2023, this represents a decrease of $18.081 million or 8%; while for the nine months ended 31 July 2024, gross profits fell by $119.538 million or 14% to $719.565 million. Gross margins also fell for the quarter and the nine months results to 47% and 50% from 50% and 53%, respectively. The decline in gross margin is attributable to sales distribution with lower margins and maintenance exercises which were undertaken earlier in the year.

Despite the improvements in our third quarter results, the impact from the second quarter results continues to be shown in the year-to-date totals.

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Limners and Bards Make Big Bets On Management Of Talent And Content

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Kimala Bennett  Chief Executive Officer  for Limners and Bards Limited (The LAB) has released the following report to Shareholders of its unaudited financial statements for the nine months ended July 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS).The consolidated results include the subsidiary Scope Caribbean Limited (Scope) whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent.

The LAB achieved higher net profits compared to the corresponding period last year, with net profit reaching $83.5 million, a 46.7% increase over the comparable period. This growth was driven by our strong emphasis on the Agency Segment of the business for this quarter, as we continued to build brands. While revenues were down compared to the prior period, the company implemented cost containment measures, resulting in an 18% reduction in administrative expenses.

Shareholders’ equity grew to $681.4 million, up from $597.5 million or 14.0% over the corresponding period last year. We maintained a strong balance sheet, with an improved cash position over the period. Additionally, our asset base increased as we reinvested in the business, upgrading film studio facilities.

Revenue for the nine months ended July 31, 2024, was $752.7 million, down 17.6% relative to the prior period. This decline was primarily attributable to a reduction in Media during the period. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $407.6 million, followed by Production with $190.5 million and Agency with $154.6 million.

Gross Profit for the nine months was $284.5 million, down 9.6% when compared to the corresponding period. Administrative expenses were also lower when compared to the comparable period. Administrative, selling and distribution expenses decreased by $47.5 million or 18% in comparison to the corresponding period last year. These decreases are primarily due to reduction in contractor and staff cost.

The consolidated Balance Sheet saw total assets increasing by $161.2 million or 17.1% to $1.1 Billion compared to $941.2 million in the corresponding period. This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth.

Current Assets amounted to $846.7 million, increasing by $59.9 million over the prior year.

Cash and cash equivalent increased by $25.5 million over the corresponding period last year. Management continues to maintain tight monitoring and control over receivables

Outlook
As the LAB continues to grow and diversify, our strategic initiatives are positioning us to capitalize on the booming global film industry and the increasing demand for fresh, international content.

We have successfully completed filming our first feature film, “Love Offside,” a sports romantic comedy that showcases the vibrant culture and dynamic talent of Jamaica. The film, features an impressive cast and has now entered the editing phase is slated for a February 2025 release, perfectly timed to meet the growing appetite for diverse and engaging content.

The global film market is experiencing a significant surge, with demand for international content at an all-time high. Industry reports indicate that streaming services and traditional distributors alike are increasingly seeking diverse narratives that resonate with a global audience. This trend presents a significant opportunity for the LAB, as “Love Offside” is poised to attract viewers with its unique storyline and cultural richness. Over the next 12 months, the Company plans to produce three films and three web series.

We are pleased to announce that our Chief Operations Officer (COO) and Head of Production, Tashara Lee Johnson, recently represented us at the MIP Africa Content Market in South Africa as a part of the Jamaican delegation organized by JAMPRO, a premier event in the global film industry. This market is a critical platform for forging connections, understanding market trends, and securing partnerships that will enhance our film’s reach and profitability.

In parallel, our agency arm is gearing up for our regional expansion strategy, where we will engage with various businesses and explore strategic partnerships across the Caribbean. Our goal is to solidify our presence in these markets, leveraging the region’s growing influence in the global media landscape.

Our commitment remains steadfast in delivering value to our shareholders by expanding our content portfolio, exploring new markets, and forging strategic alliances that will drive growth and profitability. The steps we are currently taking are designed to position the LAB at the forefront of a rapidly evolving industry, ensuring we capitalize on the opportunities presented by the global demand for fresh, compelling content.

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Trinidad and Tobago NGL’s Investment In Phoenix Park Gas Processors Delivers Robust Revenue and Profit Performance For Six Months Of 2024

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Dr. Joseph Ishmael Khan, Chairman Trinidad and Tobago NGL Limited has released the following Condensed Interim Financial Statements For The Six Months Ended 30 June 2024.

Trinidad and Tobago NGL Limited delivered a robust performance for the first half of 2024, posting a profit after tax of TT$46.7 million. This represents an outstanding turnaround from the corresponding 2023 period, where a loss of TT$2.8 million was recorded and signifies an impressive year-on-year improvement of TT$49.5 million.

Earnings per share reached TT$0.30, a substantial recovery from the loss per share of TT$0.02 for the same period in 2023.

The driving force behind TTNGL’s strong performance was the enhanced profitability of its investment in Phoenix Park Gas Processors Limited (PPGPL). This achievement was principally due to increased production of natural gas liquids (NGL), higher sales volumes, and improved NGL prices at Mont Belvieu.

Enhanced NGL production was facilitated by a 4.4% increase in natural gas volumes processed at Point Lisas in the first half of 2024 compared to 2023. Moreover, the gas stream’s NGL content saw a significant rise of 15.5% over the previous year, a result of deliberate efforts by The National Gas Company of Trinidad and Tobago Limited to enrich gas supplies. As a result, NGL production from gas processing increased notably, even when accounting for the extended plant downtime experienced in the first half of 2023.

Additionally, NGL volumes delivered from Atlantic LNG also increased by 3.2%, over the comparative period in 2023.

NGL prices rose by 11.5% compared to the same period in 2023, driven mainly by increased global demand and strategic positioning by market participants for future arbitrage opportunities.

The combination of higher NGL production and increased sales revenues, supported by improved NGL product prices, underscores PPGPL’s strong operational safety and its market leadership as the preferred NGL marketer locally and regionally.

Moreover, PPGPL has maintained high levels of operational efficiency within its processing plants, complemented by a strong commitment to safe operations and effective cost management.

During the first half of the year, Phoenix Park Trinidad and Tobago Energy Holdings Limited (PPTTEHL), PPGPL’s North American subsidiary, also delivered strong performance. PPTTEHL experienced significant trading volumes and benefited from improved margins on its sales contracts.
We anticipate continued earnings growth from this business segment moving forward.

TTNGL’s cash position at the end of June 2024 remained strong at TT$139.1 million, up from TT$113.0 million in 2023, reflecting the Company’s solid liquidity. TTNGL continues to explore all options to address its accumulated deficit and move towards a position where it can resume dividend distributions to shareholders.

Outlook
As we look ahead, we remain ever – optimistic about the positive price forecasts, while PPGPL continues to monitor market uncertainties and implement value-added strategies. PPGPL is unwavering in its commitment to strategic growth, prioritising the following: safe operations; high plant reliability and availability; meeting customer needs and sustaining market presence across all territories. These efforts are critical to delivering long-term shareholder value.

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