Connect with us

Businessuite Markets

QWI Investments Remains Optimistic About The Prospects For Almost All Of Its Largest Jamaican Holdings As It Reports A Net Loss Of $110.6 Million In The Third Quarter Ended June 2022

Published

on

John Jackson Chairman QWI Investments (QWI) Has Released The Following Report For The Third Quarter Ending June 2022.

Trade in Shares: QWI Investments Limited (QWI) | Mayberry Investments Limited

QWI Investments as an investment company invests in stocks and shares locally and overseas.

Markets typically move through peaks and troughs and there is evidence that Q2 is not likely to be the most profitable period; but markets tend to rebound after the summer.

During the June quarter, some stocks that performed well in the first two quarters pulled back as investors seemed to have capitalized on profits accumulated earlier.

In the case of the US, the market was negatively impacted by concerns about inflation and rising interest rates. Locally, a number of stocks that performed creditably in the first 6 months retreated because of profit-taking during the quarter.

We are of the view that the situation is temporary and the results of the companies will improve and positively impact the prices of the stocks, to the benefit of QWI’s assets.

QWI recorded profits before tax for the nine months to June 2022, of $6.9 million compared with almost $443 million in the corresponding period a year ago.

The Company reported a net loss of $110.6 million in the third quarter ended June 2022, a $274 million reversal from the $163 million in net income for the corresponding quarter in 2021.

Market Backdrop
Market conditions, during the quarter and the fiscal year to date, have generally been less favourable than the prior year and the first quarter of the current fiscal year, which has resulted in significant unrealized losses in the portfolio, partially due to seasonal factors as well as the impact of higher interest rates. During the quarter, overseas stock markets declined sharply.

The Main Market in Jamaica continued the slow downturn seen in the first half while the sharp upturn in the junior market decelerated significantly.

Third Quarter Results
QWI’s Jamaican investments, which now represent 83 percent of the Company’s portfolio, produced $38 million in unrealized losses and $6 million in realized losses in the quarter. The latter resulted from the realignment of some of the stocks in the portfolio.

The Net Asset Value (NAV) of the Company’s shares declined 5.7 percent from $1.39 in March 2022 to $1.31 at the end of June 2022. The relative underperformance against the Jamaican indices reflects QWI’s exposure to the US market, which experienced a sharp decline in the June quarter.

The Company recorded $93.6 million in unrealized losses in its overseas portfolio and an additional $13.8 million in realized losses. Unrealized exchange gains totalled $10 million versus $11 million a year ago. Administration costs fell to almost $7 million (2021 – $12.9 million), primarily due to the reversal of certain investment management costs accrued in the first half of the year.

The Company’s tax accrual was reversed in the period, resulting in a credit comprised mainly of write-backs for deferred tax accrued in the first half versus deferred tax provisions of almost $51 million a year ago.

Year To Date Results
The Net Asset Value (NAV) of the Company’s shares fell 2 percent from $1.34 at the end of September 2021 to $1.31 at the end of June 2022. The NAV was reduced by the dividend of 3.5 cents per share declared in March and paid in April 2022. After adjusting for the dividend payment, the NAV actually increased 0.5 cents or 0.3 percent in the year to date.

This performance compares favourably with the 7 percent decline in the main JSE index and the 12 percent drop in the S&P 500.

QWI’s Jamaican portfolio produced $118 million in unrealized gains in the year to date. Unrealized losses of $104 million in the overseas portfolio offset much of the gain in Jamaican portfolio. Net total investment gain (realized and unrealized) for the year to date was $31 million versus $477 million in the prior year.

Unrealized exchange gains amounted to $34 million versus a $0.4 million loss a year ago. Administration costs were $64 million compared with $37 million in 2021, due in the main to accruals for higher investment management expenses this year.

The Company benefitted from a tax credit of $4 million, arising from the write-back of provisions for deferred tax made in prior periods versus a tax charge of $108 million a year ago.

Statement Of Financial Position
QWI ended the period with equity capital of $1.79 billion, down from $1.83 billion at the end of September 2021, resulting from the $47 million dividend payment in the period to date, offset by the profit reported.

At the end of the quarter, the Company had reduced to US$2.4 million its holdings of equities listed in the USA and Trinidad and Tobago.

The portfolio still includes positions in several leading information technology companies, retailers, aerospace and services companies.

Investments in local and overseas stocks amounted to $2.1 billion, with 83 percent represented by Jamaican listed stocks and the majority of the balance invested in the US market.

The Company is holding approximately $159 million in balances at its banks and brokers that is available either for future investment or to reduce outstanding loans.

Borrowings at 30 June 2022 amounted to $361 million compared to $416 million at September 2021.

Outlook
The Company’s Investment Committee actively monitors the investment portfolio and the markets in which we operate.

We are encouraged by a number of positive developments in the Jamaican economy, namely the continued rebound in visitor arrivals and the improved profit results being posted by several companies compared to 2021.

The Company is optimistic about the prospects for almost all of its largest Jamaican holdings.

Noteworthy also, is that while QWI’s overseas investments have incurred unrealized losses of $104 million up to June 2022, this portfolio contributed over $44 million in gains in 2020 and a further $132 million in 2021.

The Company’s Annual General Meeting (AGM) held on 19 July 2022, was preceded by an Extraordinary General Meeting (EGM), where shareholders approved resolutions to effect:
•changes to QWI’s Articles of Incorporation to permit future AGMs and EGMs to be conducted virtually and for reports to shareholders to be distributed electronically;
and
•changes to the way in which the Company’s Investment Committee is remunerated.

More Information CLICK HERE

Businessuite News24

Unlocking Future Potential: The Impact of USAGE Group’s Internship Programs on Tertiary Level Students

Published

on

Bridging the Gap Between Education and Real-World Experience

In today’s competitive job market, the value of practical experience cannot be overstated. Recognizing this need, USAGE Group has pioneered an innovative approach to talent development through its structured Internship Programs, offering university and college-level students unparalleled opportunities to gain hands-on experience while completing their academic requirements.

Empowering the Next Generation:

At USAGE Group, internships are more than just a temporary stint; they are a gateway to professional growth and career advancement. Through carefully crafted programs, students are immersed in real-world projects and mentored by industry experts, equipping them with the skills and knowledge needed to excel in their chosen fields.

A Dual Purpose:

The internship programs at USAGE Group serve a dual purpose, benefiting both students and the company itself. For students, these programs provide invaluable exposure to the inner workings of a dynamic business environment, allowing them to apply theoretical concepts learned in the classroom to practical, real-life situations. Additionally, students accrue hours of hands-on work experience, fulfilling requirements for their academic programs while laying the foundation for future career success.

Opportunities for Growth:

Interns at USAGE Group are not merely bystanders; they are active participants in the company’s mission to deliver top-tier support services to Caribbean SMEs. From assisting with client projects to contributing to strategic initiatives, interns are given meaningful responsibilities that challenge and inspire them to reach new heights. Moreover, they have the opportunity to work alongside seasoned professionals, gaining insights and mentorship that are invaluable to their professional development.

Building a Talent Pipeline:

By investing in internship programs, USAGE Group is not only nurturing the next generation of talent but also building a pipeline of skilled professionals who may eventually join the company on a full-time basis. Through internships, USAGE Group identifies promising individuals who embody the company’s values and ethos, laying the groundwork for future recruitment and retention efforts.

Testimonials from Interns:

“The internship program at USAGE Group has been a transformative experience for me. Not only have I gained practical skills that will serve me well in my career, but I’ve also had the opportunity to work alongside some of the brightest minds in the industry.” – Sarah, Business Administration Student

“I never imagined that an internship could be this impactful. At USAGE Group, I’ve been given real responsibilities and treated as a valued member of the team. It’s been an eye-opening experience that has solidified my career aspirations.” – John, Computer Science Student

Join the Journey:

For university and college-level students seeking to gain practical experience and jumpstart their careers, USAGE Group’s Internship Programs offer a pathway to success. Whether you’re studying finance, marketing, IT, or any other field, there’s a place for you to thrive at USAGE Group.

Contact USAGE Group Today:

To learn more about internship opportunities at USAGE Group and how you can become a part of our dynamic team, contact us today.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

As USAGE Group continues to lead the way in revolutionizing business support services in the Caribbean, its commitment to nurturing talent and empowering the next generation remains unwavering. Through internship programs that prioritize hands-on learning and professional growth, USAGE Group is shaping the future of the region’s workforce, one student at a time.

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

Continue Reading

Businessuite News24

Revolutionizing Business Support Services in the Caribbean: The USAGE Group Story

Published

on

How USAGE Group is Redefining IT-Centered Support for Caribbean SMEs

In the dynamic landscape of Caribbean business, where innovation meets necessity, one company stands out for its commitment to delivering top-tier support services to small and medium enterprises (SMEs). Conceptualized and formed in 2020, USAGE Business Support Services Group has swiftly emerged as a beacon of efficiency and cost-effectiveness, offering a comprehensive suite of Corporate and Operational Services tailored to meet the unique needs of Caribbean businesses.

Unveiling USAGE Group:

At the heart of USAGE Group’s mission is a dedication to providing IT-centered Business Support Services that empower Caribbean SMEs to thrive in today’s competitive market. With a diverse range of offerings, including Accounting and Finance solutions, USAGE Group is not just a service provider but a strategic partner committed to the success of its clients.

Putting Customer Experience First:

What sets USAGE Group apart is its unwavering commitment to customer service and experience. Embedded in the company’s DNA is the mantra “U In Everything We Do,” reflecting a culture that prioritizes the needs and satisfaction of its clients above all else. From the initial consultation to post-implementation support, USAGE Group ensures a seamless and enjoyable experience for every client.

Why Partner With USAGE?

Affordable Quality Monthly Subscription Services: USAGE Group offers cost-effective subscription services designed specifically for SMEs, providing access to high-quality support without breaking the bank.

Access to Multitalented Professionals: Clients of USAGE Group benefit from a team of self-motivated professionals with diverse skills and experiences, capable of tackling even the most complex business challenges.

Expertise and Guidance: Beyond service delivery, USAGE Group offers expertise and guidance to clients, ensuring that every step of the process is smooth and collaborative.

True Collaboration: At USAGE Group, every project is approached as a collaboration, guiding clients from their current state to their desired outcomes with a process that prioritizes mutual growth and success.

Commitment to Quality: From concept to implementation and beyond, USAGE Group remains committed to delivering quality services that positively impact the bottom line of its clients.

Empowering SMEs for Success:

The overarching goal of USAGE Group is clear: to provide SMEs with first-world Accounting, Finance, and Corporate Services that exceed expectations, unlocking their full potential and driving tangible results. By maximizing Business-to-Business (B2B) opportunities and fostering long-term partnerships with SME CEOs, Entrepreneurs, and Business Owners, USAGE Group is poised to catalyze growth and expansion across the English-speaking Caribbean.

In a landscape where agility and innovation are paramount, USAGE Group stands as a testament to the transformative power of strategic partnership and customer-centricity. As Caribbean SMEs navigate the complexities of the modern business world, USAGE Group emerges as a trusted ally, empowering them to thrive and succeed in the digital age.

Contact USAGE Group Today:

For SMEs seeking to revolutionize their business support services and unleash their potential, USAGE Group offers a pathway to success. Contact USAGE Group today for a free consultation and discover how their innovative solutions can transform your business.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

Continue Reading

Businessuite Markets

The LAB Reporting Higher Net Profits Based On Strong Focus On Agency Segment

Published

on

Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited financial statements for the three months ended January 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 when compared to the corresponding period last year. This was based on the strong focus on the Agency Segment of the business for this quarter, as the company continued to build brands. The Agency Segment provides the highest profit margin and as such bolstered the results for the period. The company also implemented cost containment measures, which resulted in a 19.2% reduction in administrative expenses when compared to prior period. We continue to maintain a strong balance sheet and our cash position grew stronger over the period. Our asset base increased, as we reinvested in the business through further upgrading film studio facilities.

Revenue for the three months ended January 31, 2023, was $219.4 million, down 11.4% relative to the prior period. This decline was primarily attributable to a reduction in production during the period due to its cyclical nature. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $118.3 million, followed by Production with $29.3 million and Agency with $71.6 million.

The company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.

Gross Profit for the three months was $88.9 million, down 3.3% when compared to the corresponding period. Net Profit achieved was $26.2 million, up 295.7% relative to the comparable period. due to higher gross profits from the agency segment and lower administrative expenses. Administrative expenses decreased by $16.3 million or 19.2% 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 $119 million or 15.1% to $909.3 million compared to $790.2 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 $731.7 million, increasing by $107.6 million over the prior year, primarily due to a 43.6% increase in cash and cash equivalent. Management continues to maintain tight monitoring and control over receivables. Cash and cash equivalent increased by $142.4 million over the corresponding period last year. Shareholders’ equity grew to $624 million, up from $548.1 million or 13.9% over the corresponding period last year.

The LAB is pleased to report significant progress in our strategic initiatives. We have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law,” as outlined at our last Annual General Meeting (AGM). Additionally, Pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.

In line with our strategic objectives, we are actively engaging with international networks and digital streaming platforms to secure distribution opportunities for our content upon production completion. This proactive approach ensures that our creative endeavours have a suitable platform to reach global audiences.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

Maximum Participating Voting Share Capital Of Companies Listed On The Junior Stock Exchange Moving From JA$500 Million To JA$750 Million

Published

on

“Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Government of Jamaica through the Ministry of Finance and the Public Service has announced that they have increased the participating share capital limit from $500 million to $750 million for companies on the Junior Market of the Jamaica Stock Exchange.

“This is very exciting news for the Exchange,” commented Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange. “This is an exceptionally good move by the Government as this will allow small and medium sized companies to come to market to raise additional capital for business expansion and assist new companies to raise capital and to consider this capital raising option as viable. She stated that “Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Junior Market was established in 2009 to allow small and medium sized companies (SMEs) to raise a maximum of $500 million dollars during an initial public offering (IPO). The Government’s new initiative towards companies listed on the Junior Market now allows them to raise up to $750 million dollars, an increase of $250 million dollars.

Source Jamaica Stock Exchange

Continue Reading

Businessuite Markets

A.S. BRYDEN Acquires Control Of Stansfeld Scott In Barbados

Published

on

A.S. Bryden & Sons Holdings Limited (“A.S. Bryden”) today announced that it has acquired a 55% controlling stake in Stansfeld Scott (Barbados) Limited (“SSB”).

SSB is a leading distributor and retailer of wines, spirits and consumer health products in Barbados. SSB’s products include El Dorado and Plantation rums, Glenfiddich whisky, Stolichnaya vodka, Banrock Station and Lamothe Parrot wines, Twining’s teas, Haliborange vitamins and Endura Malt. In addition to its distribution business, SSB operates six Wine World branded retail stores across Barbados.

P.B. Scott, Chairman of A.S. Bryden

The transaction will allow A.S. Bryden to expand its premium beverage business outside of Trinidad for the first time. Brian Cabral, the outgoing Chairman of SSB, will retain an ownership interest in the Company following the transaction and will remain a director. Stansfeld Scott International, a master distributor of wines and spirits across the Caribbean and Central America which is also owned by Mr. Cabral and his partners,

Jayshree Kessaram and Indra Cabral will not be impacted by this transaction.

In speaking about this development, P.B. Scott, Chairman of A.S. Bryden said, “Brian Cabral, his family and his team have spent decades carefully building Stansfeld Scott into the highest quality wines and spirits distributor and retailer in Barbados. We look forward to joining forces and using A.S. Bryden’s resources to serve Stansfeld Scott’s employees, customers and its principals.”

Continue Reading

Trending

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