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The Facey Group Offloading Shares In Seprod Group To Raise Just Over JA$2.2B

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The Facey Group Limited has issued its prospectus inviting applications to purchase 91,914,894 ordinary shares in the capital of The Seprod Group. The shares are to be offered at $23.99 per share and is expected to raise just over JA$2.2 billion.

They form part of a block of 217,148,936 shares and cash, that the Facey Group had secured in March 2018, when both companies, The Facey Group and Seprod Group, reached an agreement for the Seprod Group to acquire Facey’s consumer business, which consists solely of its distribution of consumer and pharmaceutical products in Jamaica.

Seprod expects the acquisition to increase its earnings and cash flow on a per share basis.

For its part The Facey Group intends to keep 125,234,043 ordinary shares for its own account and to make the 91,914,894 ordinary shares available to prospective Investors inclusive of 55,000,000 ordinary shares reserved for a selected group.

The Facey Group in its prospectus said that they opted for this approach of making the shares available to prospective investors so as to avoid, The Facey Group owning more than 50% of the issued ordinary shares of The Seprod Group.

Currently, Facey’s affiliate Musson (Jamaica) Limited owns 45.27% of Seprod’s issued ordinary shares.

If all the ordinary shares are purchased by prospective investors, The Facey Group and its affiliate Musson (Jamaica) Limited will own 48.94% of the issued shares of the Company.

Facey also indicated that it wanted to continue to build a culture of ownership at the Company by allowing the staff, managers, executives, and directors to purchase the Reserved Shares and to allow fellow shareholders to purchase additional shares in the Company.

The transaction closed in September 2018 subject only to the issuance of the 217,148,936 shares by Seprod to The Facey Group.

To view Facey Group Limited Offer of Seprod Shares Prospectus click HERE

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Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.

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Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.

The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.

Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.

Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.

Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.

Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.

Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.

Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.

While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.

Solomon Sharpe Chief Executive Officer

For More Information on Main Event Entertainment Group Limited (MEEG) Unaudited Results, Q1 – Three Months Ended January 31, 2025 (Revised) Click Here

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