Connect with us

Businessuite Markets

VM Investments Q1 Financials Adversely Impacted By Global And Local Market Factors

Published

on

Rezworth Burchenson Chief Executive Officer at VM Investments Limited (VMIL) has released the following Consolidated Financial Performance Report Results for the 3 Months Ended March 31, 2022.

For the first quarter of 2022, market volatility due to the prolonged effects of the pandemic, as well as the military invasion of the Ukraine, adversely impacted VMIL’s operations.

Our investment portfolio was particularly impacted by the volatility in the global and local markets and suffered unanticipated losses, even as we positioned for a rebound in the real economy locally with the relaxation of containment measures and the resumption of tourism activities.

VMIL’s 90.78% year-over-year decline in Net Profit, resulted mainly from a reduction in Gains from Investment Activities, which declined 63.56% from $199.39M to $72.66M. The bond market saw a general decline as several monetary authorities, including Jamaica’s began tightening monetary policy through increased interest rates. Concurrently, the equity market also came under significant pressure as geopolitical tensions led to rises in commodity prices and increased uncertainty.

The Group’s performance was also adversely impacted by foreign exchange losses and valuation losses on bonds due to the global instability.

Improvements in Interest Income and Net Fees and Commissions of 30.34% and 34.08%, respectively were insufficient to compensate. In particular, income from our Capital Markets fees performed well, as the strategies devised by our team generated strong gains in the Group’s Loan portfolio when compared to the activities in the prior period.

These factors combined saw our Total Revenues fall 20.57% during the quarter, while Operating Expenses grew 5.52% compared to the prior year.

Notably, the Group was able to offset its before tax losses by way of deferred tax credits. This resulted in a net credit of $29.16 million for the period.

In the midst of the challenging market environment, we remain confident that a focus on our strategic pillars of Extending Distribution, Sales & Service Excellence and Regional Expansion will allow us to navigate the turbulent environment and position VMIL as a nimble and strong financial institution that is able to respond to and capitalize on opportunities as they present themselves in the new and evolving world.

To that end, during the quarter, we achieved the following milestones:

Diaspora Engagement

To bridge the gap between members of the investing public residing in the Diaspora, we have embarked on an aggressive push into key Jamaican markets overseas to build financial literacy and provide an avenue for these persons to invest locally. To that end, we executed 2 roadshows in the US during the quarter and expect to execute at least 8 more for the remainder of 2022. This resulted in a 288% increase in the number of clients in the Diaspora and a resultant increase in revenue earned from these clients.

VM Wealth Management Capital Injection

In an effort to support expansion activities of its subsidiary, VM Wealth Management, VM Investments Ltd approved a capital injection of $600 million to be executed in two (2) tranches, the first of which took place on March 31, 2022. This additional capital will be used to drive income generating strategies, that will exploit

investment opportunities that are expected to manifest based on the current investment environment.

Carilend Update

In August 2019, VMIL acquired a 30% interest in Carilend Caribbean Holdings Company Limited, Carilend.

Carilend is a FinTech company that was founded in 2015 and has revolutionized borrowing and lending in the Caribbean by offering entirely online lending services.

Barbados’ economy has expanded for the last 3 consecutive quarters, which has had a favourable impact on Carilend’s activities, coupled with the continuous recovery of the Jamaican economy. Carilend is expected to continue outperforming its projections towards becoming profitable and is planning to expand its footprint within the next 12 months into Trinidad and Tobago.

RFI Update

Republic Funds (Barbados) Inc (RFI) is licensed as a Mutual Fund company pursuant to the Mutual Fund Act (Barbados) and is subject to regulatory oversight by the FSC (Barbados). RFI is one of five mutual fund companies operating in Barbados and operates three investment funds available to investors. The three funds are: the Capital Growth Fund, the Income Fund; and the Property Fund. In November 2021, we signed an agreement to purchase 100% of RFI, subject to regulatory approval. This acquisition aligns with the organization’s overseas expansion thrust.

Assets

Total assets of $30.22 billion as at March 31, 2022 represented an increase of 9.77% or $2.69 billion over the same period in 2021. The increase was driven primarily by growth in our loan portfolio which climbed by 157.16% or $2.67 billion year-over-year. Other areas of asset growth came from an increase in our Property, plant and equipment (+$717.85 million), as well as an increase in our Deferred tax asset (+$408.68 million) year-over-year.

The Group also saw declines in resale agreement balances which were strategically reinvested in higher yielding investment securities.

Liabilities & Shareholders’ Equity

For the first quarter of 2022, VMIL’s funding base expanded considerably. Specifically, total liabilities increased year-over-year by 13.23% or $3.1 billion, primarily due to additional borrowing (+$3.21 billion) year-over-year accessed through the issuance of bonds by the company. Shareholders’ equity declined year-over-year by 9.94% or $408.43 million ending at $3.70 billion as at March 31, 2022.

Off-Balance Sheet Assets Under Management Highlights

The Group acts as agent and earns fees for managing clients’ funds on a non-recourse basis under management agreements. As at March 31, 2022, these funds amounted to $34.34 billion (December 31, 2021: $34.71 billion).

Additionally, at March 31, 2022, there were custodial arrangements for assets totalling $9.15 billion (December 31, 2021: $12.74 billion).

Growth in our off-balance sheet business will continue to have focused attention in the financial year as we seek innovative channels and products geared towards creating value for our clients.

To view the full report, CLICK HERE

Businessuite Markets

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

Published

on

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.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

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

Published

on

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.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

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

Published

on

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.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

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

Published

on

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.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

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

Published

on

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.

For More Information CLICK HERE

Continue Reading

Trending

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