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TRANSCRIPT
Q1 2020UNAUDITED FINANCIAL RESULTS
The Board of Directors of the company is pleased to share its
Unaudited 1st Quarter 2020 financial results for the months
January – March 2020.
INVESTMENT ENVIRONMENT
The company currently holds stock in over 32 companies listed on the Main and Junior Markets of
the Jamaica Stock Exchange (JSE).
For the period January to March 2020, the JSE Main Market Index declined by 121,221 points or
24% from 500,463 to 379,242 points. When compared to March 2019, units fell by 9,035 or 2.3%.
Local and global stock markets were impacted negatively in the last month of the financial quarter
since the outbreak of the Novel Coronavirus (COVID-19) which was declared a global pandemic by
the World Health Organization on March 9, 2020. The JSE Junior Market reported similar downward
trends and closed March 2020 at 2,304 points when compared to 3,092 points for March 2019 and
3,088 points as at January 2020, a 25.4% decline.
The economic impact of COVID-19 continues to evolve and the Government of Jamaica and the
Bank of Jamaica have implemented initial measures to facilitate the smooth functioning of the local
financial market. Of note, the Net International Reserves closed at US$3.2 billion which can support
approximately 23.2 estimated weeks of imports of goods and services.
MANAGING DIRECTOR’S COMMENTARY ON FINANCIAL RESULTSFOR THE FIRST QUARTER ENDED MARCH 31, 2020(represented in J$)
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PORTFOLIO HIGHLIGHTS
Total volumes purchased for the first quarter of 2020 amounted to 288 million units whereas total
volumes sold amounted to 30 million units, making MJE a net purchaser of stocks for this period.
PURCHASES PURCHASES SALES SALES
VOLUME VOLUME CHANGE VOLUME VOLUME CHANGE
PERIOD 2020 2019 2020 2019
Q1 288,038,884 30,622,743 257,416,141 29,857,030 10,604,663 19,252,367
COMPANIES PRICE CHANGE HOLDINGS
SUPREME VENTURES LIMITED -46.6% 47%
DERRIMON TRADING COMPANY LIMITED -29.2% 7%
WIGTON WIND FARM -28.3% 6%
LASCO FINANCIAL SERVICES LIMITED -35.4% 6%
CARIBBEAN CEMENT COMPANY LTD -47.2% 5%
JAMAICA BROILERS GROUP LIMITED -25.4% 5%
CARIBBEAN PRODUCERS JAMAICA LIMITED -56.5% 4%
BLUE POWER GROUP LIMITED -16.3% 4%
JMMB GROUP LIMITED -19.2% 2%
LASCO DISTRIBUTORS LIMITED -10.1% 2%
Price movements for the Top 10 stocks in the portfolio since the
beginning of the quarter were:
Local equity prices trended downwards in the first financial quarter of 2020, due to local and
global economic conditions.
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FINANCIAL POSITION
Total assets declined to J$11.9B for the 1st quarter of 2020 compared to J$18.9B for the
comparative quarter of 2019. This represents a J$7B decrease or 37% in our asset base due
mainly to reduced values of quoted equities, particularly:
• Wigton Windfarm Limited
• Jamaica Teas Limited
• Honey Bun Limited
• Jamaica Broilers Group Limited
• Caribbean Cement Company Limited
• Lasco Distributors Limited
• Blue Power Group Limited
• Main Event Entertainment Group Limited
• Supreme Ventures Limited
For the 1st quarter 2020, Total Liabilities decreased by J$22.9M to J$2.4B or 1%. This resulted
primarily from reductions in Accounts Payables, Debt Security in issue and Deferred Tax, which was
partially offset by increases in Loans, Due to parent company and Due to related party balances.
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity as at March 31, 2020 had a balance of J$9.4B, moving from J$16.5B at
the end of the March 2019.
Retained earnings for Q1 2020 increased to J$5.3B from J$4.9B and Fair value reserves of J$2.7B
moved from J$10.1B, when compared to Q1 2019.
Description3 Months ended 31
March 2020
(J$'000)
3 Months ended 31
March 2019
(J$'000)
Change (J$'000) % Change
Total Assets 11,899,017 18,942,418 (7,043,401) -37%
Total Liabilities 2,437,123 2,414,182 (22,941) -1%
Stockholders' Equity 9,461,894 16,528,236 (7,066,342) -43%
Net Book Value Per Share $7.88 $13.76 ($5.88) -43%
SUMMARY OF CHANGES ON THE STATEMENT OF FINANCIAL POSITION
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NET ASSET VALUE (NAV)
Net Book Value per share for Q1 2020 was J$7.88, a J$5.88 reduction over the corresponding
period in 2019, due to a reduction in Investments of J$6.6B.
OVERALL PERFORMANCE
MJE’s revenue, at the end of the first quarter for 2020, declined by J$1.1B when compared to
Q1 2019. The downward trend in the local equities market, due to the impact of the global
pandemic, negatively impacted the performance of the company. Despite overall lower expenses,
the company reported losses of J$1.1B; J$958.3M higher than losses in Q1 2019. This resulted
in Loss per share (LPS) of (J$0.93), compared to (J$0.13) for the same period in 2019. This was
mainly due to the revaluation of the equities classified as Fair Value through Profit or Loss (FVPL).
TOTAL COMPREHENSIVE LOSS
Total comprehensive loss for Q1 amounted to J$7.1B, compared to a profit of J$4B for the
corresponding quarter of 2019; a decline of J$11.2B. This was due to a decrease in the Equity
Reserve, resulting from price movements for stocks held in the current portfolio.
Description
3 Months ended
31 March 2020
(J$'000)
3 Months ended
31 March 2019
(J$'000)
Change (J$'000) % Change
Net Interest Income and Other Revenues (1,094,970) (43,318) (1,051,651) -2427.7%
Operating Expenses 32,884 116,078 83,194 71.7%
Profit before Taxation (1,127,853) (159,396) (968,457) -607.6%
Net Profit (1,116,045) (157,771) (958,274) -607.4%
Other Comprehensive Income (6,020,075) 4,206,011 (10,226,086) -243.1%
Total Comprehensive Income (7,136,120) 4,048,240 (11,184,360) -276.3%
Earnings Per Share (0.93) (0.13) (0.80) -607.4%
SUMMARY OF CHANGES ON THE STATEMENT OF COMPREHENSIVE INCOME
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TOTAL REVENUES
Net Revenues for the period of January to March 2020 declined by J$1.1B over the corresponding
period last year. This decrease was primarily driven by an Unrealised loss in revaluation of financial
instruments of J$1B, in addition to a decline in Net Interest Income. This was partially offset
by an improvement in net trading gains of J$43.4 million and higher foreign exchange gains of
J$24.9 million.
OPERATING EXPENSES
Total Operating expenses were contained and decreased by J$83.2M or 71.7% when compared to
the corresponding quarter in 2019. This was due primarily to reduced incentive and management
fees for Investment management services.
Mayberry Jamaican Equities Limited takes this opportunity to thank all our shareholders and Board
of Directors for your trust and support. We urge you to keep safe in these times and to follow the
guidelines stipulated by the health officials in your various jurisdictions.
Natalie Augustin
Managing Director
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BASIS OF PREPARATION
These consolidated financial statements have been prepared in accordance with the accountingpolicies as set out in note 2 of the audited financial statements for the year ended 31 December 2019.
STATEMENT OF PROFIT OR LOSSFOR THE PERIOD ENDED MARCH 31, 2020
UNAUDITED UNAUDITED AUDITED
3 Months ended 3 Months ended
12 Months ended
31 DECEMBER
31 March 2020 31 March 2019 2019
J$'000 J$'000 J$'000
Net Interest Income and Other Revenues
Interest income 826 3,635 21,793
Interest expense (44,080) (47,293) (176,408)
Net Interest income (43,254) (43,658) (154,615)
Dividend Income 8,467 81,350 361,940
Net Trading Gains/(Losses) 48,760 5,316 -
Realised Gain on disposal of Associates - - 43,794
Unrealised (loss)/gain on investment revaluation (1,119,351) (71,841) 52,483
Net Foreign Exchange Gain / (Loss) 10,410 (14,485) 29,467
(1,094,970) (43,318) 333,070
Operating Expenses:
PrOther operating expenses 32,884 116,078 520,432
32,884 116,078 520,432
Share of Profits in Associate - - -
Operating profit/(loss) before Asset tax (1,127,853) (159,396) (341,977)
Asset Tax - - -
Profit/(Loss) before Taxation (1,127,853) (159,396) (187,362)
Taxation (charge) / credit 11,808 1,625 (5,851)
NET LOSS/PROFIT (1,116,045) (157,771) (193,214)
OTHER COMPREHENSIVE INCOME
Financial Reserve (6,020,075) 4,206,011 4,599,247
Other Comprehensive Income, Net of Tax (6,020,075) 4,206,011 4,599,247
TOTAL COMPREHENSIVE LOSS/INCOME (7,136,120) 4,048,240 4,406,034
Number of Shares in issue 1,201,149 1,201,149 1,201,149
Earnings per share (0.93) (0.13) (0.16)
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UNAUDITED
MARCH 31, 2020
UNAUDITED
MARCH 31, 2019
AUDITED
DECEMBER 31, 2019
ASSETS J$'000 J$'000 J$'000
CASH AND CASH EQUIVALENTS 449,304 238,491 535,761
INVESTMENTS 11,377,996 17,962,654 18,941,245
TAXATION RECOVERABLE 2,228 800 -
-
DUE FROM PARENT COMPANY - 694,897 211,263
INTANGIBLE ASSET 55,774 42,390 58,103
OTHER RECEIVABLES 13,715 3,186 19,281
TOTAL ASSETS 11,899,017 18,942,418 19,765,653
LIABILITIES AND EQUITY
LIABILITIES
DUE TO PARENT COMPANY 213,322 - -
DEFERRED TAX 15,846 100,549 91,809
INTEREST PAYABLE 1,655 7,910 3,639
DEBT SECURITY IN ISSUE - 2,183,009 -
LOANS 2,187,480 - 2,186,586
ACCOUNTS PAYABLES 3,365 122,715 5,266
DUE TO RELATED COMPANY 15,455 - 399,545
TAXATION PAYABLE - 4,960
TOTAL LIABILITIES 2,437,123 2,414,182 2,691,806
STOCKHOLDERS EQUITY
SHARE CAPITAL 1,468,027 1,468,027 1,468,027
PREFERENCE SHARES 135 135 135
FAIR VALUE RESERVE 2,676,955 10,072,310 9,037,154
RETAINED EARNINGS 5,316,777 4,987,763 6,568,530
TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS 9,461,894 16,528,236 17,073,847
NON-CONTROLLING INTERESTS - - -
TOTAL STOCKHOLDERS' EQUITY 9,461,894 16,528,236 17,073,847
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 11,899,017 18,942,418 19,765,653
Q1 2020 Q1 2019 DECEMBER 2019
Net book Value per Stock Unit $7.88 $13.76 $14.21
Approved by the Board of Directors for issue on 30th April, 2020 and signed on its behalf by:
Christopher Berry
Chairman
Natalie Agustin
Managing Director
STATEMENT OF FINANCIAL POSITIONAS AT MARCH 31, 2020
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UNAUDITED UNAUDITED AUDITED
3 Months ended 3 Months ended
31 March 2020 31 March 2019
J$'000 J$'000 J$'000
Profit/Loss for the period (1,116,045) (157,771) (193,214)
Other Comprehensive Income
for the period net of tax:
Items that will or maybe classified to statement of income
Unrealised gains / (losses) on financial instruments (6,020,075) 4,206,011 4,599,247
Total Comprehensive income attributable to stockholders (7,136,120) 4,048,240 4,406,034
12 Months ended
31 DECEMBER 2019
STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED MARCH 31, 2020
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SHARE CAPITAL
FAIR VALUE
RESERVES
RETAINED
EARNINGS TOTAL
$'000 $'000 $'000 $'000
Balance at January 1, 2019 1,468,162 5,955,575 5,056,259 12,479,996
Realised gains / (losses) on fair value instruments
transferred to retained earnings - (89,275) 89,275 -
Net Profit - - (157,771) (157,771)
Total comprehensive income - 4,206,011 - 4,206,011
Translation adjustment - - - -
Balance at March 31, 2019 1,468,162 10,072,310 4,987,763 16,528,235
Balance at January 1, 2020 1,468,162 9,037,154 6,568,530 17,073,847
Realised gains / (losses) on fair value instruments
transferred to retained earnings - (340,124) 340,124 -
Net Profit - - (1,116,045) (1,116,045)
Total comprehensive income - (6,020,075) - (6,020,075)
Translation adjustment - - (475,833) (475,833)
Balance at March 31, 2020 1,468,162 2,676,955 5,316,777 9,461,894
STATEMENT OF CHANGES IN EQUITYAS AT MARCH 31, 2020
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UNAUDITED UNAUDITED AUDITED
3 Months ended 3 Months ended
31 March 2020 31 March 2019
J$'000 J$'000 J$'000
Cash Flows from Operating Activities
Profit before taxation (1,127,853) (159,396) (187,362) Adjustments to reconcile profit to net cash used in operating
activities:
Depreciation 2,226 - 4,238
Interest Income (826) (3,635) (21,793)
Interest Expense 44,092 47,293 176,408
Realized Fair Value gains transferred to Retained Earnings 340,124 89,275 1,517,668
Unrealized fair value (gain)/loss on financial instruments - FVPL 1,119,351 71,841 (52,483)
Unrealized Foreign Exchange Gains 6,600 (14,485) (6,943)
Share of results of Associates -
Realized Gain on disposal of Investment in Associates -
Income Tax (charge) / Credit 11,808 - -
Unrealized Gain on disposal of Investment in Associates -
Adjusted Profit / (Loss) 395,522 30,893 1,429,733
Changes in operating assets and liabilities:
Decrease / (increase) in Investment securities (369,835) 34,577 (1,581,447)
Decrease / (increase) in Tax Recoverable (2,228) -
Decrease / (increase) in Other Receivables 8,044 91,162 78,320
(Decrease) / increase in Accounts Payables & Other Liabilities 311,279 (152,570) 75,583
(Decrease) / increase in Due to Related companies (384,090) 30,130 538,761
(41,308) 34,192 540,951
Interest received 826 3,635 21,793
Interest Paid (46,077) (47,292) (177,001)
Taxation paid - 1,625
Cash (used in)/generated from Operating Activities (86,559) (7,840) 385,743
Cash Flows from Investing Activities
Purchase of intangible asset 102 7,646 (26,399)
Dividend paid - - (77,440)
Cash (used in)/generated from Investing Activities 102 7,646 (103,839)
Increase in Cash and Cash Equivalents (86,457) (194) 281,905
Exchange gain/(loss) on foreign Cash & Cash Equivalents 6,943
Cash & Cash Equivalents - Beginning of the year 535,761 238,685 246,914
Cash & Cash Equivalents - End of the year 449,304 238,491 535,761
12 Months ended
31 DECEMBER 2019
STATEMENT OF CASH FLOWFOR THE PERIOD ENDED MARCH 31, 2020
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Names Shareholdings
MAYBERRY INVESTMENTS LIMITED 860,507,878
PWL BAMBOO HOLDINGS LIMITED 72,397,036
K. MARK BERRY 47,823,476
MAYBERRY ASSET MANAGERS LIMITED 41,122,865
MANWEI INTERNATIONAL LIMITED 40,251,196
VICTORY ISLAND LIMITED 10,000,000
VDWSD LIMITED 8,499,000
KMB HOLDINGS INC 6,957,740
SAGICOR SELECT FUNDS LIMITED - CLASS B - FINANCIAL 6,482,385
KONRAD LIMITED 6,432,031
A+ MEDICAL CENTRE 641,141
MAYBERRY FOUNDATION 2,254,868
CONNECTED PARTIES
MAYBERRY JAMAICAN EQUITIES LTD.
TOP TEN SHAREHOLDERS
AS AT MARCH 31, 2020
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Directors Shareholdings Connected Persons
Christopher Berry - 81,590,903
Konrad Berry 47,823,476 718,429
Natalie Augustin 253,300 -
MAYBERRY JAMAICAN EQUITIES LTD.
Shareholdings of Directors and Senior Management
AS AT MARCH 31, 2020