Q1 2020€¦ · BASIS OF PREPARATION These consolidated inancial statements have been prepared in accordance with the accounting policies as set out in note 2 of the audited inancial

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$)

Page 2Investing in Jamaica Land We Love

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.



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


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


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


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)


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




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


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




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


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


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

Documents

Q1 2020€¦ · BASIS OF PREPARATION These consolidated inancial statements have been prepared in accordance with the accounting policies as set out in note 2 of the audited inancial