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Main Event Had A Rewarding 2019, Marked By Overall Business Growth And Consistent Performance – Sharpe

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“We have had a rewarding year, marked by overall business growth and consistent performance. The year’s accomplishments were headlined by robust top-line growth. Building on the strength of our core business, we have successfully developed attractive new opportunities that have fostered growth. We continue to strive for excellence in our service delivery and have enhanced our reputation as an All-Encompassing Brand Experience Facilitator not only in Jamaica but in the region as well. This 360-degree approach to the event planning industry is unique, innovative and forward-thinking. It is what continues to set us apart in our field.

At the close of the 2019 financial year, we achieved and exceeded our revenue targets, delivering revenue growth of $402.19 Million or 29%. We have achieved double-digit gains in all core revenue categories, and our newer service offerings have contributed $177.50 Million or 10% of revenues this past year.

Entertainment Sector & Segment Review

The overall sector showed that there was an increase in entertainment activities partially reflecting the increased granting of amusement licenses by the parish councils. These licenses increased 5.20 percent in the year to 22,560 approved events across the island, according to the latest statistics from the Economic and Social Survey published by the state-led Planning Institute of Jamaica. Main Event would have benefited from the increased activity; particularly in larger cities and towns which all showed an increase in license approval led by St James, St Ann, and Westmoreland.

During the year, the formal entertainment industry on a whole increased its propensity to grow with a slight uptick in bank loans outstanding totaling $2 Billion up to October 2019. This figure grew 10 percent to $2.2 Billion in December after the close of Main Event’s year-end. The Company thinks this growth in entertainment loans augurs well for the strengthening of the sector. Additionally, while the sector loans grew by some 15 percent over three years, over that same period, total loans across all industries virtually doubled from $481.90 Billion in September 2016 to over $842 Billion in December 2019, according to data from the Bank of Jamaica.

In the financial year, Main Event launched M Academy, its marketing, event management, and production certification programme. The Company has already graduated several students with new cohorts on the way. The Company will utilize the M Academy training and certification programme to capitalize on the demand for skill training in the entertainment and tourism industry. There are no facilities on the island that adequately train audio and visual technicians to professional standards.

In the past, Main Event has had to train its own staff in-house and decided that such training would benefit the wider society. To fill this void, M Academy was set up as a solution. A small band of suitable tutors and trainers have been recruited to take this concept to students. This will increase the pool of talent in the industry, which will redound to the benefit of Main Event and the nation on a whole. The course which completed its first set of training modules in November 2019successfully graduated over 100 students who are now equipped with the invaluable knowledge and skills required to obtain a career within the event industry. M Academy will continue its mandate in the coming financial year of training and development to ultimately provide opportunities for our youth within this ever-evolving event industry.

M Style XP Our exclusive full-service wedding and signature event design division of Main Event Entertainment Group Limited has continued to grow from strength to strength in 2019. Creating memorable experiences tailored to fit clients’ needs and style, M Style XP is devoted to exceptional service while providing superior value to our diverse and discerning clientele. M Style XP continues to perform exceptionally well. As a relatively new player in the industry, it continues to pick up traction and is now a top choice for premium weddings and corporate events. The division continues to make headway in the market through innovation as well as in its offerings of premium fixtures and furniture that distinguishes itself in the marketplace. We continue to expect even further growth in the years to come.

Financial Performance

Gross Profit increased by 21 percent to $776.7 million compared to $640.1 Million a year earlier. The Company’s gross profit margin (gross profit over total sales) declined slightly to 43 percent from 45 percent in the previous year. Despite the slight fall in margins, Main Event gained from an overall increase in revenue. Net Profit Net profit before tax totaled $100.7 million compared to $95 Million a year earlier. The increase in profit was due to increased business activity and sustained market share. Main Event was keen on effecting efficiencies during the year and administrative costs grew at a slower pace than revenue at $533 million compared to $418 Million a year ago, or 27.5 percent.

Total Assets: The balance sheet shows a $1.03 Billion or 9.4 percent increase in total assets when compared to the similar period last year. The Company completed the buildout of its M-Style facilities in the current quarter, and the buildout of the operational space in Western Jamaica was completed during the year. The rollout of the M-Style showroom allows for the exploration of new concepts targeted at building out an even stronger market demand for Main Event’s service experience.

Group Equity totaled $578.8 Million or 6.5 percent higher than a year earlier. The rise in equity was due to increased retained earnings which now totals $475.2 Million.

In the year, the Company declared $18 Million worth of dividends to its shareholders.

The market value of shares in Main Event closed the year at $5.32 in October 2019 compared with $6.50 in October 2018. Since that time, however, the price has trended towards higher levels. The Company believes that its fundamentals are sound and that the market will eventually see the value that has been created over the 2019 financial year, as reflected in increased cash generated from their record revenue.

Revenue:

The Company booked another year of record revenue at $1.8 Billion up $402 Million or 29 percent higher than a year earlier.

Main Event maintained steady revenue growth in the 2019 financial year as it benefited from diversified revenue streams. The MStyle experience was the best growth segment. Also, the Company’s presence in the West and M Academy project contributed to growth during the year.

Segment results showed that revenue from the Company’s entertainment promotions operations stood at J$1.25 Billion which accounted for almost 70 percent of the overall $1.8 Billion in revenue. This segment grew revenues by $218.5 Million year-on-year due in part to increased marketing spend from major clients.

The second highest revenue segment was audio & film operations which earned $268.2 Million up from $222.1 Million a year earlier. This segment represented 15 percent of total revenues.

During the financial year, revenue from digital signage totaled $101 Million from $77.3 Million in the previous financial year. M Style XP earned $160.7 Million up 152 percent over the previous year from $64 Million. M Academy revenue totaled $16.8 Million in its inaugural year of operations.

Business Outlook

For the upcoming financial year, the Company is aiming for a minimum of 8% growth in revenues.

Once the economy remains strong, we expect a robust year as prospects are good and continuing to grow in our industry. We recognize the importance of a lean cost structure and we have identified the need for a margin re-alignment project. We have commenced a detailed review of direct costs aimed at re-assessing and refining cost management and control strategies. We have also recognized a need to expand our portfolio of higher-value service offerings and expect the realignment project to have a positive impact on margins.

We are energized by the positive momentum that we are seeing in our Company and we are excited to build on this momentum in the new year. Over the past 2 years, we have expanded our business and we have realized immeasurable intangible growth and development in strategic areas of our business. We are committed to the continuing refinement of our service offerings as well as to sharpening of our skills and talent. We believe we have set the stage for sustainable growth in an expanding industry.

As we move forward into 2020 and beyond, we will be focused on pursuing operating efficiencies as we are keen to grow more efficiently and profitably.

Solomon Sharpe Chief Executive Officer, extracted and edited from 2019 Annual Report

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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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