Durrant Pate/Contributor

Mayberry Group has seen a large chunk of its profits dwindle during the April to June quarter, struggling to remain profitable during the period.

The group recorded net profit of J$768.6 million for the second quarter in June, compared to net profit of J$5.2 billion for the prior year. This downward performance was due primarily to lower unrealised gains on the fair value of its profit and loss (FVTPL) investments portfolio, due to the soft equities market.

The prior period recorded unrealised gains on the equities portfolio, some of which related to the rebound of the stock market post pandemic. However, the performance for the quarter was bolstered by a higher share of profit from joint venture of J$974 million, compared to a share of loss from joint venture of J$29 million for the comparative quarter in 2022.

Half-year performance

For the six-month period, recorded net profit attributable to shareholders amounted to J$293.3 million, representing a 91 per cent or J$2.9 billion decline over the corresponding period in 2022. This performance resulted from a decline in net operating income of J$7.3 billion, or 96.5 per cent, compared to the prior year.

This negative out-turn was primarily attributable to the recording of net unrealised losses on investments in associates at FVTPL of J$206 million with the retreat of the stock market year to date. This was offset by increased earnings from the group’s investment in joint venture, with share of profits from joint venture growing by J$976 million, an increase from a loss of J$29 million in the comparative period.

This resulted in earnings per share (EPS) of $0.24, compared to an EPS of $2.67 for the corresponding period last year. Arising from this, a dividend of J$360 million will be paid on July 31, 2023 to all shareholders on record as at July 12, 2023.

On the positive side, total operating expenses for the June quarter went down by J$338 million, or 42 per cent, to J$467.3 million when compared to Q2 2022.

Major highlights of performance:

• Total assets reported as at June 30, 2023, grew to J$56.7 billion, a J$3.1 billion or 5.8 per cent increase over the comparative period for 2022.

• Net book value per share closed at J$14.17, a J$1.15 or 7.5 per cent decline over the corresponding period in 2022.

• Net interest expense amounted to J$78 million, a decline of 149 per cent over the net interest income of J$159 million earned for the similar six-month period in 2022. The results reflect significant growth in interest income on margin loans, higher by 19 per cent or J$41 million year-over-year and other loan income growing 43 per cent associated with the growth recorded for loans and advances of 26 per cent or J$2 billion, when compared to the prior year. This interest income growth was offset by the interest costs for the Mayberry bond, including the non-recurring special discretionary interest paid to bond holders of J$38 million during the first quarter.