Durrant Pate/Contributor

Mayberry Jamaica Equities continues its strong rebounding with net profits surging by a whopping 119 per cent for the second quarter ended June 30, 2022.

The company reported a net profit of J$5.3 billion for the June quarter, representing an increase of J$2.9 billion. This is as a result of the continued improvements in the performance of stocks in its portfolio.

The positive performance mainly resulted from increased net gains on investments in associates of J$3 billion, net unrealised gains on local equities higher by J$97 million and dividend income growth of approximately J$89 million when compared to the same period in 2021. Total operating expenses for the quarter under review increased by J$217.2 million to J$265.5 million when compared to 2021.

This resulted in an earnings per share (EPS) of J$4.43, up from J$2.02 in 2021. Total comprehensive income recorded 56 per cent growth to J$5.1 billion for the April to June 2022 period compared J$3.3 billion for the same period last year.

Significant increases in net investment gains

This was primarily attributable to significant increases in net investment gains on equity investments for the June 2022 quarter. Net revenues generated for the June 2022 quarter amounted to J$5.6 billion representing a 125 per cent increase over the similar quarter in 2021.

This performance was primarily attributable to increased unrealized gains on investments in associates which increased by J$3 billion or 124 per cent. Dividend income increased by 104 per cent to J$174.4 million compared to J$85.3 million in the prior year.

The largest contributor to the portfolio’s dividend revenues was Supreme Ventures Limited with dividends of J$165.2 million. Total operating expenses for the second quarter increased by J$217.2 million when compared to Q2 2021.

This was mainly attributable to expenses incurred for management and incentive fees following the improvement in net asset value (NAV) under management. The net book value per share increased by 43 per cent to J$17.80 as at June 30, 2022, compared to J$12.42 for the corresponding period in 2021.

The second quarter performance builds steadily on the solid increases achieved in the first quarter of the 2022 financial year where the NAV closed at J$12.46. The increase noted resulted primarily from the J$10.5 billion or 124 per cent increase in investments in associates to J$19 billion.

Portfolio highlights

Mayberry Jamaican Equities currently holds stock in 33 companies listed on the Main and Junior Markets of the Jamaica Stock Exchange (JSE). The company made net additions to investments during the quarter reflecting the continued favourable pricing of some stocks relative to the Investment Manager’s growth projections for earnings and dividend yield.

Total assets as at June 30, 2022, were valued at J$25.4 billion. This represents a 50 per cent increase from the J$16.9 billion reported as at June 30, 2021.

The J$8.4 billion increase was mainly attributable to a J$10.5 billion increase in investments in associates attributable primarily to capital appreciation on the investments. This was offset by a year over year J$2.1 billion decline in investment securities.

Total liabilities amounted to J$4 billion as at June 30, 2022, an increase of J$1.9 billion compared to the corresponding period in 2021, driven mainly by an increase in funding from debt for investment purchases.