Connect with us

Businessuite Markets

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

Published

on

“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

Businessuite Markets

Scotiabank Group Jamaica Continues To Perform Well

Published

on

Scotia Group reports net income of $4.2 billion for the quarter ended January 31, 2025, representing an increase of $1.1 billion or 34.5% over the comparative prior period.

The Group’s asset base grew by $73.3 billion or 11% to $739.2 billion as at January 2025 and was underpinned by the excellent performance of our loan and investment portfolios.

In furtherance of our objective to continue to return value to our shareholders, the Board of Directors has approved a dividend of 45 cents per stock unit in respect of the first quarter, which is payable on April 17, 2025, to stockholders on record as at March 26, 2025.

Audrey Tugwell Henry, Scotia Group’s President and CEO gave the following comments. “Scotia Group has delivered another solid performance for the quarter, and I am very proud of our team for their unwavering dedication and consistent service delivery to our clients. These results signal a strong start to the second year of our five-year strategy, and our goal remains to become our client’s most trusted financial partner. We continue to promote the importance of a balanced financial portfolio which incorporates banking, insurance protection and wealth, and we are committed to offering the best financial advice, earning the right to be our clients’ primary financial institution and making it easier to do business with us.”

Business Performance

Scotiabank Continues To Perform Well With Each Business Unit Delivering Commendable Results For The Quarter.

Deposits by the public increased by $34.4 billion or 7.5% versus the corresponding period last year.

Total loans increased from $275.7 billion to $312.5 billion representing an increase of 13.3%. This includes a 12% increase in Scotia Plan personal banking loans and a 24% increase in mortgage loans. Commercial loans also increased by 5% over the prior year period.

Our insurance subsidiaries continue to make a valuable contribution to the Group’s results. Net Insurance Revenues at Scotia Insurance increased by $504 million or 96% year over year and Gross Written Premiums grew by 5%. Sales at our general insurance business, Scotia Protect, increased by 53% while Gross Written Premiums increased by 71% when compared to the previous period.

Scotia Investments continues to assist clients to build wealth and navigate the complexities of the financial markets. Assets Under Management at SIJL increased by 13.3% over the comparative period demonstrating the strength of our investment advisors and asset management team.

As we advance our growth strategy, we are very pleased to see the continued appreciation in our stock price which has shown steady improvement. This demonstrates significant investor confidence in the Group and we are proud to continue returning strong value to our shareholders through both consistent dividend payments as well as capital appreciation.

Group Financial Performance

Total Revenues

Total revenues excluding expected credit losses for the year ended January 31, 2025, grew by $2.2 billion to $17.1 billion reflecting an increase of 14.9% over the prior year period. This was primarily driven by the strong growth in our loan portfolio which led to an increase in net interest income of $1.1 billion or 10% as well as an increase in other revenue of 26.2%.

Other Expenses

Other income, defined as all revenue other than interest income, increased by $1.2 billion or 26.2%.
• Net fee and commission income for the period amounted to $2.2 Billion and showed an increase of $671.8 million or 42.9% and was primarily driven by the higher volume of client transactions and activities.
• Net insurance revenue increased by $503.8 million or 96.2%, driven by higher contractual service margin releases coupled with lower insurance expenses in keeping with the performance of the portfolio, as well as an increase in transaction volumes stemming from further deepening of our client relationships.
• Net gains on financial assets amounted to $197.2 million, reflecting a year over year increase of $67 million or 51.5%, given improved market performance. 5 OPERATING

Expenses

Operating expenses totaled $9.7 billion as at January 2025 and reflected an increase of $1 billion or 11.6% when compared to the prior period. Of note, annual asset taxes recorded during the quarter totaled $1.7 billion, an increase over 2024 of $102 million or 6.4%.

Excluding the reduction in the net pension credit on our defined benefit plans, operating expenses increased by $743 million or 8.1% year over year.

Additionally, our investments in technology also contributed to the increase in operating expenses, as the Group continues to expand on our digital capabilities geared towards simplifying and streamlining our processes to make it easier for our clients to do business with us. These investments have enhanced the overall efficiency of our operations and enabled us to generate increased revenues.

Capital

Shareholders’ equity available to common shareholders totaled $150.7 billion and reflected an increase of $29.3 billion or 24.1% when compared to January 2024. This was due primarily to the re-measurement of the defined benefit pension plan assets, higher fair value gains on the investment portfolio and higher internally generated profits partially offset by dividends paid.

We continue to exceed regulatory capital requirements in all our business lines, and our strong capital position also enables us to manage increased capital adequacy requirements in the future and take advantage of growth opportunities.

Audrey Tugwell Henry, Scotia Group’s President and CEO

For More Information Click Here

Continue Reading

Businessuite Markets

The LAB’s Strategic Shift: Embracing Content Creation Amidst Evolving Financial Landscape

Published

on

Limners and Bards Limited (The LAB) headed by Kimala Bennett Chief Executive Officer, has unveiled its unaudited financial statements for the first quarter ending January 31, 2025, showcasing a nuanced performance as the company navigates a strategic pivot towards content creation. This move aims to capitalize on the burgeoning global appetite for diverse, high-quality content.

Financial Performance Overview

The LAB reported a robust quarterly revenue of $286.1 million, marking a significant 30.4% year-over-year increase. This growth was primarily driven by gains in the Production and Media segments. Gross profit reached $100.5 million, a 13% uptick from the previous year, indicating sustained operational efficiency.

However, profit before tax experienced a slight decline of 3.6%, settling at $25.2 million. This downturn is attributed to the transition from a full income tax holiday to a 50% concession, following The LAB’s fifth year on the Junior Stock Exchange. Consequently, net profit for the period stood at $21.6 million, reflecting a 17.6% decrease compared to the prior year. Despite this, the company maintains a robust balance sheet and a stable cash position.

Segment Performance

Media: Generated $142.5 million in revenue.

Production: Contributed $101.0 million.

Agency: Accounted for $42.6 million.

The net profit margin declined by 5.4%, as revenue growth was led by the lower-margin Production and Media segments, compared to the higher-margin Agency segment in the prior period. The company anticipates an Agency rebound by Q3, aligning with industry’s seasonal fluctuations.

Strategic Investments and Asset Growth

The LAB’s asset base expanded by $178.0 million, driven by strategic investments in content development. This initiative positions the company for long-term growth and revenue diversification in the “Owned” content industry.

Current assets rose to $920.6 million, while cash and cash equivalents experienced a year-over-year decline of $89.2 million.

Accounts receivable increased by $118 million, mirroring strong revenue growth. Management remains focused on optimizing credit terms through active client engagement.

Shareholders’ equity strengthened to $660.1 million, a 5.8% increase from the prior year, underscoring the company’s financial resilience.

Transition Towards Content Creation

The LAB is strategically positioning itself to harness the escalating global demand for diverse and high-quality content. With major streaming platforms, including Netflix, projected to invest $18 billion in content in 2025—an 11% increase from 2024—the appetite for fresh storytelling is evident.

The company’s “FIVE in 25” initiative, aiming to produce five films by 2025, is progressing well. Two films have been completed, with active negotiations underway with buyers and distributors. By focusing on high-performing genres such as Christmas and romance, The LAB ensures its productions cater to proven audience preferences.

Industry Outlook and Viability

The global content market is experiencing unprecedented growth. Streaming services and traditional distributors are increasingly seeking diverse narratives that resonate with a global audience. This trend presents a significant opportunity for The LAB, as its productions offer unique Jamaican perspectives with universal appeal. Engagements at international events like NATPE Global 2025 have facilitated negotiations with major distributors and networks, enhancing the company’s visibility and positioning its films for broader distribution.

Implications for Shareholders and Investors

While the strategic shift towards content creation entails upfront investments and a gestation period before realizing returns, it aligns with global industry trends favoring diverse content. The LAB’s strong financial foundation, coupled with its proactive approach to content development and strategic partnerships, suggests a forward-thinking trajectory. Shareholders and investors can anticipate potential long-term gains as the company taps into new revenue streams within the expanding content market.

Conclusion

The LAB’s recent financial performance reflects the complexities of transitioning within a dynamic industry landscape. By embracing content creation and investing in strategic initiatives, the company demonstrates adaptability and a commitment to sustainable growth. As The LAB continues to evolve, its focus on delivering compelling, culturally rich content positions it to capitalize on emerging opportunities, promising value creation for shareholders and stakeholders alike.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

Jamaica Broilers Group Faces Major Financial Setback as US Operations Struggle; Stephen Levy Resigns

In a move that signals accountability at the highest level, Mr. Stephen Levy, President of JBG’s US Operations, has resigned from both the Board and the Company, effective May 3, 2025. Levy, who has been with Jamaica Broilers since 2002, played a pivotal role in growing the US segment’s annual revenue from a modest US$10 million to over US$250 million. His departure suggests he is taking responsibility for the recent poor financial results of the US operations.

Published

on

The Jamaica Broilers Group Limited (JBG) has reported a major financial shift for the quarter ending January 25, 2025, revealing a dramatic swing from profitability to loss. The company’s unaudited financial statements highlight a net loss of $1.1 billion for the current quarter, a stark contrast to the net profit of $1.3 billion reported in the corresponding period last year. This represents a significant $2.4 billion downturn in financial performance, prompting serious concerns about the group’s operational and financial stability, particularly in its US segment.

Revenue Growth Overshadowed by Rising Costs

Despite the overall revenue of the group increasing by 5% to $24.6 billion, up from $23.6 billion in the previous year, profitability has suffered significantly. Gross profit for the current quarter stands at $4.7 billion, marking a 21% decline from the $5.95 billion recorded in the same period last year. This discrepancy suggests that the cost of goods sold or other direct expenses have outpaced revenue growth, eroding the company’s margins.

Jamaican Operations: Hurricane Beryl’s Impact

Jamaica Broilers’ domestic operations also faced difficulties, with segment profits declining by 9%—from $5.964 billion last year to $5.4 billion this quarter. While total revenue for the Jamaican segment saw a marginal 0.5% increase over the prior nine-month period, the impact of Hurricane Beryl significantly affected profitability. Increased operational costs due to hurricane-related disruptions appear to be the primary reason for the decline, signaling vulnerability to environmental and economic shocks.

US Operations in Crisis: A Steep Decline

In a move that signals accountability at the highest level, Mr. Stephen Levy, President of JBG’s US Operations, has resigned from both the Board and the Company, effective May 3, 2025.

The most alarming financial downturn occurred in JBG’s US operations. The segment reported a profit of just $922 million this period, a sharp 69% decline from the $2.192 billion earned in the corresponding period last year—a staggering $2.1 billion shortfall. Notably, revenue for the US segment grew by 5%, indicating that the decline in profit is not due to a drop in sales but rather significant increases in operational expenses, lower profit margins, or one-time extraordinary costs.

Several factors have been identified as contributing to the decline in US operations:

Expense Management Issues: Ineffective cost controls have led to higher-than-expected spending.

Operational Control Deficiencies: Weaknesses in internal procedures may have resulted in inefficiencies and potential losses.

Hurricane Flooding Challenges: External disruptions due to severe weather conditions likely compounded the operational difficulties.

The combined effect of these challenges led to the substantial decrease in US segment profitability, raising concerns about long-term sustainability and resilience.

Corporate Response and Leadership Changes

Recognizing the gravity of the situation, JBG’s corporate management has taken decisive steps to address the financial downturn. The company has engaged external advisors to assess the issues and provide expert recommendations for corrective action. Additionally, JBG is undertaking a thorough review of operational controls to identify weaknesses and implement necessary reforms.

In a move that signals accountability at the highest level, Mr. Stephen Levy, President of JBG’s US Operations, has resigned from both the Board and the Company, effective May 3, 2025. Levy, who has been with Jamaica Broilers since 2002, played a pivotal role in growing the US segment’s annual revenue from a modest US$10 million to over US$250 million. His departure suggests he is taking responsibility for the recent poor financial results of the US operations.

During this transitional period, JBG President & CEO, Mr. Christopher Levy, will oversee US operations directly, ensuring that necessary corrective measures are implemented to restore profitability and operational efficiency.

During this transitional period, JBG President & CEO, Mr. Christopher Levy, will oversee US operations directly, ensuring that necessary corrective measures are implemented to restore profitability and operational efficiency.

Looking Ahead: The Road to Recovery

Jamaica Broilers Group now faces the challenge of stabilizing its US operations while reinforcing its financial health. The company’s commitment to engaging external expertise and reassessing operational frameworks suggests a strong intent to rectify existing issues. However, investors and stakeholders will closely monitor how effectively JBG can execute these turnaround efforts.

While the departure of Stephen Levy marks the end of an era for JBG’s US segment, it also signals a crucial moment of introspection and course correction for the group. The next few quarters will be critical in determining whether JBG can regain financial stability and rebuild investor confidence in its future prospects.

For More Information  CLICK HERE

Continue Reading

Businessuite Markets

Listing GraceKennedy Financial Group on the JSE

The acquisition and delisting of Key Insurance and the potential listing of GraceKennedy Financial Group on the JSE represent a transformative strategy. This approach not only streamlines the group’s organizational structure but also positions it to capitalize on emerging opportunities in the financial services industry, ultimately driving value for customers and shareholders alike.

Published

on

GraceKennedy Financial Group’s (GKFG) recent J$403.71 million bid to acquire the remaining 27% of Key Insurance Company Limited (Key) presents a pivotal opportunity for strategic restructuring within the GraceKennedy conglomerate.

Currently holding approximately 73% of Key’s shares, GKFG’s move towards full ownership could lead to significant organizational changes, including the potential delisting of Key from the Jamaica Stock Exchange (JSE) and the subsequent listing of GKFG.

Delisting Key Insurance from the JSE

Under the JSE Main Market rules, a company may be delisted if a single shareholder controls more than 80% of its listed shares . Should GKFG’s acquisition increase its stake in Key beyond this threshold, delisting becomes a probable outcome. This would allow GraceKennedy to integrate Key’s operations more seamlessly into its financial services division, enhancing operational efficiencies and strategic alignment.

 

Listing GraceKennedy Financial Group on the JSE

Introducing GKFG as a listed entity on the JSE’s Main Market could offer several strategic advantages:

Consolidation of Financial Services: Listing GKFG would enable the consolidation of GraceKennedy’s insurance, banking, and financial subsidiaries under a single holding company. This unified structure could streamline operations, reduce redundancies, and present a cohesive financial services portfolio to investors.

Enhanced Capital Raising Opportunities: As a publicly listed entity, GKFG would have direct access to equity markets, facilitating capital raising for expansion initiatives, strategic acquisitions, and technological investments. This access is crucial for staying competitive in the rapidly evolving financial services sector.

Increased Market Visibility and Investor Confidence: A publicly traded GKFG would likely attract a broader investor base, enhancing market visibility. Transparency associated with public listings can bolster investor confidence, potentially leading to a higher valuation and increased shareholder value.

Strategic Implications and Future Outlook

The potential restructuring aligns with GraceKennedy’s long-term vision of becoming a global consumer group by 2030, focusing on both food and financial services . By fully integrating Key Insurance into GKFG and positioning GKFG as a listed entity, GraceKennedy can leverage synergies across its financial services, drive innovation, and enhance customer offerings.

Moreover, this move could set a precedent for other conglomerates in the Caribbean, demonstrating the benefits of strategic realignment and market repositioning to achieve growth and operational excellence.

In conclusion, the acquisition and delisting of Key Insurance and the potential listing of GraceKennedy Financial Group on the JSE represent a transformative strategy. This approach not only streamlines the group’s organizational structure but also positions it to capitalize on emerging opportunities in the financial services industry, ultimately driving value for customers and shareholders alike.

Continue Reading

Businessuite Markets

GraceKennedy Financial Group Moves to Fully Acquire Key Insurance

Published

on

GraceKennedy Financial Group (GKFG), the financial services division of GraceKennedy Limited (GK), has announced a J$403.71 million takeover bid to acquire the remaining 27% of Key Insurance Company Limited (Key). This strategic move reinforces GKFG’s commitment to expanding its presence in the general insurance market while driving growth and value for customers and shareholders.

GKFG, which currently holds approximately 73% of Key’s shares, is offering J$2.70 per share. The offer opens on March 24, 2025, and closes on April 22, 2025. Deputy CEO of GKFG, Steven Whittingham, who oversees GK’s insurance segment, highlighted the benefits of the acquisition, “This transaction aligns with GK’s strategy of unlocking value in the general insurance sector. By fully incorporating Key into GKFG, we can enhance efficiencies and strengthen our competitive position. Our focus remains on innovation, customer satisfaction, long-term stability, and delivering superior products and services.”

Grace Burnett, CEO of GKFG, emphasized GK’s longstanding commitment to general insurance, “GK has been serving general insurance customers for over 50 years. Since acquiring a majority stake in Key Insurance in 2020, we have significantly strengthened its operations and expanded its market reach. Key marked its 40th anniversary in 2022 and has built a reputation for reliability and excellence over the decades. We are dedicated to preserving that legacy while driving future growth for the business.”

GraceKennedy Group CEO, Frank James, noted that the move supports GK’s Vision, which includes a focus on expanding and enhancing the Group’s financial services and delivering strong shareholder returns.

“GKFG’s bid to acquire full ownership of Key underscores GK’s commitment to maximizing stakeholder value. The transaction is expected to unlock operational efficiencies, drive synergies, and enhance customer service, solidifying Key Insurance’s role within our Group.”

Key Insurance is currently listed on the Main Market of the Jamaica Stock Exchange (JSE).

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x