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VM Investments Reporting Strong Performance Primarily Driven by Net Fees And Commissions, For The 6 Months Ended June 30, 2022

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Rezworth Burchenson Chief Executive Officer at VM Investments Limited (VMIL) has released the following Consolidated Financial Performance and Report Results for the 6 Months Ended June 30, 2022

Our Today

The second quarter of 2022 came with many obstacles and uncertainties, but VMIL remained robust and posted a 3-month Net Profit of $242.45 million, 38.56% above the quarter ended June 2021.

The uptick in Net Profit was a result of a 47.88% increase in Other Operating Revenue, when compared to the comparable quarter in 2021, which was sufficient to offset the 62.80% increase in expenses. Net fees and commissions were the primary drivers of the increase in revenue of 157.28%, attributable to our strong execution of both debt and equity related transactions in the review period.

Total year-to-date revenue increased 9.84% compared to the same 6-month period in 2021, particularly due to the exceptional performances of Corporate Finance Advisory Service income. This uptick in revenue was sufficient to offset the 19.99% rise in total expenses. The global inflationary environment increased the costs of operating domestically, as VMIL remained committed to improving the lives of members and promoting the VMIL brand. The growth in revenue enhanced the year-to-date efficiency ratio by 5.76%.

During the quarter, we achieved the following milestones:

Dolla Financial Services Limited (DOLLA) IPO
The DOLLA IPO was the largest in the JSE Junior Market history, raising close to $5 billion. The offer was 10 times oversubscribed and welcomed thousands of new investors and new VM Wealth Management clients. These new investors accounted for 12.75% of the total investors that sought to benefit from the new listing. Dolla became the 45th company to list on the JSE Junior Market and the 145th company to successfully list on the JSE overall, when it listed on June 15, 2022.

Kingston Properties Limited (KPREIT) APO
VMIL was once again selected as the financial partner of choice for the company’s capital raise which brought in over $1.50 billion and raised brand awareness.

Assets
Total assets of $29.12 billion as at June 30, 2022 represented an increase of 1.51% or $0.43 billion over June 30, 2021. The increase was driven primarily by growth in our loan portfolio which climbed by 170.72% or $2.91 billion year-over-year. This was driven by the strategic thrust to grow our Corporate Lending and Margin Loan business and assets including cash and cash equivalents and resale agreements were deployed to this area of the business.

The reduction in assets of $2.12 billion (6.79%) since December 31, 2021 reflects the ongoing strategy to de-risk the balance sheet of our broker-dealer subsidiary, VM Wealth Management in light of the volatile nature of the market during this time.

Liabilities & Shareholders’ Equity
For the second quarter of 2022, VMIL’s funding base expanded with VMIL’s debt raise of $1,153.89M, while derisking the balance sheet and reducing repurchase agreements by $3.74B or 18.25%. Profitable performance resulted in an increase in Retained earnings of $317.78M or 11.76% but, this was countered by a reduction in Investment revaluation reserve from $756M as at June 30, 2021 to -$574.53M as at June 30, 2022. This was as a result of a reduction in prices of securities held, due to the increase in interest rates.

Off-Balance Sheet Assets Under Management Highlights
VMIL continues to act as an agent and earns fees for managing clients’ funds on a non-recourse basis under management agreements. As at June 30, 2022, these funds amounted to $33.88 billion (March 31, 2022: $34.34billion). Additionally, at June 30, 2022, there were custodial arrangements for assets totalling $9.32 billion (March 31, 2022: $9.15 billion).

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

VMIL Is Expanding

CARILEND
Carilend Caribbean Holdings Company Limited, (Carilend), a leading Caribbean fintech in which VMIL acquired a 30% stake in 2019, has partnered with Massy Finance to offer 100% web-based personal loans in Trinidad and Tobago. The new online loan, dubbed InstaLoan, is an unsecured personal loan that promises a one-day turnaround on approvals, and doesn’t require borrowers to provide collateral. With operations already in Barbados and Jamaica, customers in Trinidad & Tobago can now qualify for loans between TT$5,000 and TT$50,000 with repayment terms from one to five years. This partnership is expected to boost the performance of Carilend and allow the entity to begin yielding a profit ahead of the projected period.

Home Choice
VMIL, on May 31, 2022, announced its private equity investment in Home Choice Enterprise Limited, a Portmore based enterprise that distributes products that are co-manufactured under its own brand, with a range of soup mixes and ‘Halaal’ products, including its popular ‘Halaal’ Vienna sausages. Home Choice has been in operation for over twenty-two (22) years and is a staple in the local, regional and international market, with a customer base spanning Jamaica and a strong Jamaican Diaspora presence.

Actus Partners
During the quarter also, VMIL partnered with London-based Actus Partners (Actus) to successfully close a new Caribbean private equity fund focused on Small and Medium Enterprises (SMEs). The fund, named the Jamaica Actus Small & Medium Enterprises Fund I (JASMEF) is supported by the Development Bank of Jamaica (DBJ) and is targeting a final fund size of US$100M, of which VMIL has committed US$10M.

More Information CLICK HERE

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Guardian Holdings Earnings Per Share Increased To TT$4.55 Versus The Comparative Period Of TT$1.97. For The Nine-Months Ended 30th September 2022

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Patrick Hylton Chairman Guardian Holdings Limited Has Released The Following Report To Shareholders For The Nine-Months Ended 30th September 2022

Your Group continues to demonstrate resilience and produce excellent performance.

Global financial markets remain volatile, in part due to the Russia-Ukraine conflict, the related sanctions and economic fallout as well as global economic weakness. The outlook for financial markets over the short and medium-term remains uncertain and vulnerable to continued geopolitical tensions. Despite these challenges, we remain focused on enhancing our operating performance to counter these numerous disruptions.

For the nine-months ended 30th September 2022, profit attributable to equity shareholders was $1.056 billion and represented a 131% increase over the corresponding period last year of $457 million.

Earnings per share increased to $4.55 versus the comparative period of $1.97.

As we have communicated on many occasions, the Group has been on a transformation journey centered on technology, people and processes. We have invested heavily in technology to bring world-class customer service to our markets, leverage the scale of our Group and reduce our operating costs. While in recent years we have reaped some of the benefits, we are now at a resultant juncture where the payback on this investment is rapidly accelerating. In 2022 the Group implemented many of these initiatives for our Life, Health and Pensions (LHP) segment with the alignment of our Trinidad and Jamaica operations bringing to reality operational synergies, cost savings and centers of excellence. These activities result in long-term cost savings which have the effect of creating favourable reserve movements contributing to the exceptional performance recorded for the year to date.

Gross Written Premiums for the LHP segment increased by 6.5% from $2.915 billion to $3.105 billion. Investment income and fees were also up by 10%, an $82 million increase. In addition, net insurance benefits and claims (inclusive of favourable reserve movements) were lower than prior year by 19%, $429 million. All these factors contributed to a healthy uplift in LHP profit after tax of 1 16%, $597 million over prior year.

Results from Property and Casualty and Brokerage segments of the business also reported growth year over year of 42%, $43 million, whilst Asset Management declined by 42%, $13 million.

The Group’s net income from investing activities fell from $1.153 billion to $942 million, a reduction of 18%. This decrease was principally due to net fair value losses of $153 million reflecting the difficulties in global financial markets in the current period, compared to net fair value gains in the prior period of $133 million, resulting in an unfavourable movement of $286 million. The unfavourable fair value movement was partially offset by an increase in investment income of $70 million, arising from portfolio growth.

Operating expenses were $1 .147 billion, representing a 7% increase over the $ 1.074 billion reported for the same period prior year. These primarily relate to costs associated with the implementation of IFRS 17 as well as with the group-wide transformation initiatives.

The Board is pleased with this quarter’s performance and remains confident about the Group’s future financial performance.

For more information CLICK HERE

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ANSA McAL Limited Reporting Groups Revenue Increased By TT$581million Or 14% To TT$4.716 Billion Over The Nine-Month Period Ended 30 September 2022.

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A. Norman Sabga Chairman ANSA McAL Limited has released the following-Unaudited Financial Results for the Nine-Months ended September 30 2022

Over the nine-month period ended 30 September 2022, the Group’s revenue increased by $581million or 14% to $4.716 billion ($4.135 billion – 2021) and total assets grew by 3% to $17.570 billion ($17.043 billion – 2021). Our gearing ratio reduced to 8.6% (9.6% – 2021).

With the exception of banking and insurance, all major business segments continue to show improvement over last year with our Automotive, Beverage, Manufacturing, Construction and Distribution operations demonstrating strong top line growth and profitability.

The investment portfolios of our Banking and Insurance Segment and at Parent continue to be affected by volatility in the global financial markets. The resulting non-cash, mark to market losses reduced the Group’s profit before tax to $139.1 million ($461.8 million – 2021) and earnings per share to $0.00 ($1.65 – 2021).

While it is challenging to predict with certainty the timing of the turnaround of the investment portfolios, the core operating banking and insurance business lines continue to perform well and are expected to grow.

ANSA Bank’s transformative digital commercial model is still on track to be launched before the end of the year, and regulatory approval was recently granted for the acquisition of COLFIRE by TATIL which we expect to close early in 2023. This addition to our Insurance business will provide a significant uplift while improving our offerings to a wider customer base.

Looking wider and farther ahead, we have set an aggressive target of doubling the Group’s profitability by 2027. Underpinning this target are robust strategies to achieve organic and inorganic growth in both new and existing regional and international markets. We also continue to balance prudent cost management and pricing strategies to achieve our very ambitious growth targets.

Our strategic intent is to create not only sustainable but inclusive growth for the benefit of society. We have therefore embedded a strong environmental, social and governance (ESG) proposition within our plans to assure the creation of value for all our stakeholders in the long term. With a resilient balance sheet, strong core values and talented people, we remain confident about the future.

For more information CLICK HERE

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L.J. Williams Limited Looks to Stronger December 2022 3rd Quarter As They Continue To See Resilience In Consumer Shopping.

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Krishna Bahadoorsingh, Chairman of L.J. Williams Limited has released the following Condensed consolidated financial information for FY 2023 Half Year Ending September 30th 2022

The Group turnover for the half year ending September 30th 2022 was $76.63 million vs $61.94 million for the same period last year, an increase Of 23.7%. Operating profit increased by 58.5% to $7.72 million from $4.87 million for the corresponding period last year.

The Parent Company’s sales were 5% above the same period last year. The Food Division continues to show improvement as the supply chain issues caused by the pandemic diminish, allowing suppliers to improve deliveries.

THS Hardware and Shipping Division sales were flat for the first two quarters compared to 2021. However, we expect an improvement in the Shipping Division’s performance in the Third Quarter ending December.

The Home Store results for FY2022 were impacted by the 2021 May to mid-August store closures due to Covid lockdown. As a result, the current half year shows sales growth of 90% over the comparative period in 2021 as all stores were open during this period. We ended FY2022 with excess inventory and more promotions and sales were run to help bring our inventory down to a manageable level.

We expect the 3rd Quarter ending December 2022 to be strong as we continue to see resilience in consumer shopping which benefits our distribution and retail businesses.

We are also pleased to report that The Home Store has continued to expand and opened its fifth location at East Gates Mall in Trincity on 30th of October 2022. Furthermore, we expect to open The Home Store’s first international branch in Amazonia Mall in Guyana by the end of November 2022.

For more information CLICK HERE

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Trinidad And Tobago Based National Flour Mills Records Loss Of TT$1.7M. As At September 30, 2022 Report

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Nigel Romano Chairman National Flour Mills Limited has released the following Unaudited Results As At September 30, 2022 (Expressed In Thousands Of Trinidad And Tobago Dollars)

The Russia-Ukraine war, the slowdown of the Chinese economy and rising geopolitical tensions across the globe continued to impact global supply chains and the cost of food and fuel leading to surging inflation in almost every country in the world. In addition, the impact of climate change, in the form of increased rainfall in
some areas and drought in others added more complexity to the operating landscape.

At The UN’s World Climate Conference (COP27), currently underway in Egypt’s Sharm El-Sheikh, it is being acknowledged that countries are not doing enough to prevent global temperatures from rising by the targeted 1.5 degrees Celsius above pre-industrial levels. If these targets are not met and the increase in global warming is not reversed in a very short space of time, it could be too late. Climate change has already adversely affected the global supply of wheat. Droughts and excessive heat in North America and India have resulted in demand exceeding supply for wheat which led to price escalations so far this year, a trend we expect to continue.

The issues above impacted our operations with cost of sales increasing by 21.4% year-on-year, up from $256.7M to $311.9M. The price increases implemented earlier this year helped to blunt this impact with revenue up by 16.1% from $319.7M in Q3 2021 to $371.2M. However, this was not sufficient to off-set the increased cost of sales, and even though our indirect expenses remained relatively stable over the period, operating profit decreased by 57.5% compared to the prior year. As at September 30, 2022, NFM recorded a loss of $1.7M.

Notwithstanding these challenges, significant eff orts were made to increase inventory levels to ensure a reliable supply to all our customers, with delivery of our products meeting all on time and in-full benchmarks.

In addition, we continued to invest in the upgrade of our plant and equipment to ensure that we can continue to provide safe, quality food and feed products for our customers as we continue on the journey to SQF Level 3 Certification. The increase in accounts receivables was a direct result of the price increase implemented this
year and the attendant increase in credit limits for our customers.

We wish to assure all our stakeholders that despite these challenges, we continue to explore additional avenues to serve our customers, add new customers, locally and regionally, diversify our product revenue streams and improve the efficiency of our operations.

For more information CLICK HERE

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Trinidad and Tobago NGL Improved 9 Month Performance Derived From Share Of Higher Profit From Investment In Phoenix Park Gas Processors.

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Dr. Joseph Ismael Khan, Chairman Trinidad and Tobago NGL Limited (‘ITNGL’/’Company’) has released the following report for the nine months ended 30 September 2022,

Trinidad and Tobago NGL Limited recorded an after-tax profit of IT$165.1 million. This represents an IT$31.0 million or 23.1 % improvement over the comparable period in 2021, where a profit after tax of IT$134.1 million was recorded.

Earnings per share for the period were IT$ 1.07, compared to IT$0.87 for the corresponding period in 2021, which represented an increase of 23.0%.

ITNGL’s improved performance for the period was derived from its share of higher profit from its investment in Phoenix Park Gas Processors Limited (‘PPGPL’). This enhanced performance at PPGPL continued to be driven by higher recognised Mont Belvieu natural gas liquids (‘NGLs’) prices, which were 51.5% above those of the corresponding period of 2021.

Growth in energy commodity prices, and in particular crude oil prices, has been subdued compared to earlier in the year, with the biggest impacts coming from a slowdown in economic growth and constrained global supply. Notwithstanding, prices remain robust and continue to be influenced by geopolitical fallout from the war in Europe. NGL prices continue to be closely aligned to crude oil prices.

For the first nine months of the year, NGL production from gas processing was lower by 3.7% compared to 2021 due to lower gas volumes received at PPGPL for processing (2022: 1,081 million standard cubic feet per day (‘mmscfd’); 2021: 1,096 mmscfd) and lower NGL content in the gas stream. The lower gas volumes were attributable to downtime by downstream petrochemical plants for maintenance activities during the period. NGL sales volumes for the nine months were 13.2% higher than in 2021 due to a draw on inventory because of higher customer demand. These higher sales volumes benefitted from the robust NGL product prices during the period.

PPGPL’s North American-based subsidiary, Phoenix Park Trinidad and Tobago Energy Holdings Limited (‘PPTTEHL’), has maintained its position as a key supplier of NGLs to customers in the markets it serves. The subsidiary continues to integrate its recent addition of the Hull NGL terminal and has actively managed the inherent business risks of the Company. Performance from this business segment is expected to positively contribute to PPGPL’s future earnings potential.

Outlook

To mitigate the impacts of lower NGL volumes and potential volatility in NGL prices, PPGPL remains focused on sustaining operating efficiencies, reliability of its facilities and prudent fiscal management. Additionally, PPGPL’s continued internationalisation thrust as well as its efforts to satisfy its customers and grow and retain its markets, will underpin growth of the Company’s earnings capacity and development of sustainable long-term shareholder value.

For more information CLICK HERE

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