Last year was a terrible one for Mayberry Equities Limited, which suffered a heavy loss of US$70.5 million, as its equity portfolio to a beating.

For the year ended December 31, 2020, the company chalked up total comprehensive loss amounting to US$37 million, compared to the total comprehensive income of US$33.6 million for the corresponding period of 2019. This represents a massive loss of US$70.5 million for 2020.

This was due mainly to lower revaluation gains, resulting from adverse price movements for stocks held in the equity portfolio. As at the close of 2020, Net Book Value per share moved to US$0.07, a US$0.04 decline over the corresponding period in 2019.

This resulted from a reduction in Investment Securities of US$47.5 million versus 2019. Mayberry Jamaican Equities stock price closed at J$7.99 on December 31, 2020. Total assets reported for 2020 was US$99.8 million, down from the US$150.7 million for the comparative 2019 period.

Big drop in asset base due to falling prices of equities in portfolio

This represents US$51 million or a 34 per cent decrease in asset base due mainly to reduced values of quoted equities, particularly, Lasco Financial Services, Blue Power Group, Caribbean Producers Jamaica and other equities that are valued.

The 2020 financials showed that Mayberry Jamaican Equities’ capital base remained resilient despite the negative shocks on the global and local financial markets.

The capital based closed the year at US$83.8 million when compared to US$130.2 million for December 2019. Retained earnings moved to US$29.9 million coming  from US$41 million, and Fair Value Reserves closed 2020 at US$33.4 million versus US$68.9 million for 2019.

Mayberry Jamaican Equities was a net purchaser of stocks for the financial period ended December 31, 2020 with 308.7 million units. During the year, Mayberry Equities continued to enhance its composition of equities, resulting in the addition of new securities to the portfolio, namely GraceKennedy, Caribbean Assurance Brokers and Carreras Group.

The company also acquired additional shares in Wigton Windfarm Limited and closed this position for 2020 with 1.06 billion stock units in hand. Mayberry Equities currently holds stock in 31 companies listed on the Main and Junior Markets of the Jamaica Stock Exchange (JSE).

Stock prices hit by COVID-19

All stock prices for the stocks in the portfolio’s top 10 reflected the impact of the pandemic, resulting from the reduction in asset prices, globally driven by uncertainty in the market. The company continues to monitor the impact of COVID-19 on the business and has implemented measures to aid in the continuity of its operations.

This is being done through the continuous monitoring and assessing of the impact on the entity’s financial position to determine the necessary action required by the company. However, despite the challenges faced by the company due to the deterioration of market conditions Mayberry Equities management remains confident that the company is well poised for recovery and growth in the medium to long term.

The management reports that it is aware that a long duration of the pandemic and the associated containment measures could have a material adverse effect on the company.  For 2020 Mayberry Equities reported dividend Income of US$2.3 million, compared to US$2.8 million, representing an 18 per cent decline over the corresponding period in 2019.

The most solid contributor to the portfolio’s dividend revenue line was Supreme Ventures Limited with dividends of US$2 million.