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JM | May 1, 2021

Mayberry Jamaican Equities makes substantial $6.9b cut in comprehensive losses during March quarter

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MJE expects much more improvement in upcoming June quarter

The equities subsidiary of brokerage and investment firm, Mayberry has made a massive $6.9-billion cut in its total comprehensive loss for the just-ended first quarter of March 2021, indicative of improving fortunes.

Mayberry Jamaican Equities’ (MJE) total comprehensive loss for the quarter was $196 million in comparison to the massive $7.1 billion recorded for the January to March 2020 quarter.

Managing Director Natalie Augustin reports that this performance is expected to improve as consumer confidence and market activity gains momentum throughout the year.

Following signs of some level of confidence returning to the financial markets for the period January to March 2021, MJE recorded a net profit of $299.7 million, mainly resulting from increased unrealised gains of $282 million on investment securities. This represents a 125 per cent improved performance over the corresponding period in 2019.

Improved results primarily attributable to revaluation of equities

In addition, overall expenses were lower by $1.9 million. The improved results for Q1 2021 were primarily attributable to the revaluation of the equities classified as Fair Value through Profit or Loss.

For the three months ending March 2020, MJE recorded a net loss of $1.1 billion. Net revenue for January to March 2021 was $331 million, reflecting an increase of 130 per cent or $1.4 billion over the corresponding 2020 quarter.

(Photo: Mayberry Investments Limited)

This resulted from a higher unrealised gain on investments and increased dividend income. Total operating expenses for the quarter was contained at $31 million, which was down by $1.9 million or six per cent when compared to the corresponding quarter in 2020.

For the period under review, MJE’s operating costs relative to net revenues stood at 9.4 per cent.

Sharp decline in stocks purchased

MJE purchased stocks for the three months ended March 2021 valuing $49 million compared to $313 million for the corresponding period in 2020. The portfolio’s cash balance as at March 31, 2021 stood at $330 million.

During the first quarter MJE was listed in the top 10 advancing stocks on the Jamaican stock market for the month of March 2021. Net Book Value per share moved to $9.75 as at March 31, 2021, versus $7.88 for March 2020 and closed at $9.89 when compared to December 2020.

MJE’s stock price closed at $7.80 on March 31, 2021 versus $6.63 on March 31, 2020. MJE’s capital base remains resilient with a close of $11.7 billion for Shareholders’ Equity.

This increased by $2.3 billion when compared to Q1 2020. Retained earnings for the quarter increased by $751 million to $6.1 billion, up from the $5.3 billion posted as at March 2020. Total assets as of March 2021 increased year over year to $13.6 billion or 14.6% from the $11.9 billion reported as at the end of March 2020.

This movement was mainly attributable to an increase of $1.8 billion on values of quoted equities. For the three months ending March 2021, total liabilities decreased by $510.2 million to $1.9 billion or a 21 per cent reduction compared to the corresponding period in 2020.

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