JAM | Apr 4, 2022

Mayberry Jamaican Equities turns the corner

/ Our Today

Reading Time: 3 minutes

Company made  big strides in 2021 positing big profit of US$16.5 million

Mayberry Jamaican Equities, which was hit hard by the negative effects of the COVID-19 pandemic, has turned the corner, reversing the losses incurred in 2020.

The company, in its just released audited financial statements for 2021, made a big turnaround, growing net profit by 158 per cent to US$16.5 million compared to a net loss of US$28.6 million in 2020. This performance mainly resulted from increased net gains on fair value through profit or loss (FVTPL) investments of US$45.9 million.

In addition, the equities company saw a 14.5 per cent increase in dividend income to approximately US$2.6 million when compared to the same period in 2020. Total operating expenses for the year ended December 31, 2021 increased by US$963,000 to US$2.0 million when compared to the corresponding period in the prior year.

This resulted in an earnings per share (EPS) of US$0.014 compared to the loss per share (LPS) in 2020 of US$0.024. For the year in review, the business recorded a significantly improved total comprehensive income of US$13.9 million, compared to a total comprehensive loss of US$45.8 million for the corresponding period in 2020.

This is an increase of US$59.7 million or 130 per cent. This was due mainly to higher net investment revaluation gains, resulting from favourable price movements for stocks in the equity portfolio as the market rebounded in 2021.

Mayberry’s Operating Performance

Dividend income increased by 14.5 per cent to US$2.6 million compared to US$2.3 million in the prior year. The largest contributor to the portfolio’s dividend revenues was Supreme Ventures Limited with dividends of US$2.2 million.

Net gains on FVTPL investments increased by US$45.9 million or 159 per cent, reflecting capital appreciation on equities with the year over year increases in market prices. Interest expense on financial liabilities closed 2021 at US$1.4 million compared to US$1.3 million for 2020.

The increase noted is attributable to additional borrowings via a promissory note entered into in September 2021. Interest expense related to debt securities in issue accounts for 77 per cent of the total cost of funds.

Total operating expenses of US$2.0 million increased by US$963K versus $1.1 million for the prior year. This was mainly driven by increases for computer licensing fees, investment management fees and legal and professional fees.

Investment management fees increased following the improvement in the Net Asset Value (NAV) under management. No incentive fees were paid to the Investment Manager as the NAV had not yet returned to previous levels attained pre COVID-19.

Rise in stock price

Mayberry’s stock price closed 13 per cent higher at J$9.01 on December 31, 2021, compared to J$7.99 as at December 31, 2020. Total assets reported for the year ended December 31, 2021 was US$119.6 million compared to US$99.8 million for the comparative 2020 period.

This represents US$19.8 million or a 19.8 per cent increase in asset base due mainly to the appreciation in values of the quoted equities. Investment securities declined by US$1.9 million or five per cent. This was primarily driven by Derrimon Trading Company Limited, Lumber Depot Limited, Caribbean Cement Company Limited, Wigton Windfarm Limited and Honey Bun (1982) Limited.

Investment in associates of US$82.8 million increased by US$22.1 million or 36 per cent. This was mainly attributable to increases in investments for Caribbean Producers Jamaica Limited of US$14.3 million or 332 per cent and Supreme Ventures Limited of US$8 million or 16 per cent.


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