Financial conglomerate JMMB Group Limited’s (JMMBGL) audited financial statements for the period ending March 31, 2020 have been delayed once again.
The financial statements, which were expected to be released last week (Tuesday, June 30), have been pushed back to July 14.
This is the second delay in the release of the audited financial statements.
Owing to the delays in the audited financial statements, the release of JMMBGL’s 2020 annual report has been pushed back to August 31.
In a release on the Trinidad and Tobago Stock Exchange (TTSE), JMMBGL highlighted that the audit was affected by the closure of non-essential entities in the Dominican Republic and Trinidad and Tobago, which impacted the ability of the auditors to complete their audit.
JMMBGL shares are traded on both the TTSE and the Jamaica Stock Exchange. The company noted that a delay in the receipt of Sagicor Financial Company’s (SFC) first quarter results also resulted in the delays in completing the financial statements.
Although SFC’s first quarter results were published on June 8, the impact of varied actions between their three primary markets of Jamaica, Trinidad and Barbados appeared to have affected the ability of the auditors to prepare the audited results in time.
JMMBGL benefited from two dividend payments from SFC totalling US$3.7 million up to May 31, 2020 but the financial holding company is expected to record a loss from associates in their fourth quarter, due to SFC recording a US$25.1 million loss for 2019/2020.
With a 22.5 per cent stake in SFC, JMMBGL should record a US$5.65 million ($791.3 million) loss from SFC, its associate company. Arising from this, JMMBGL is expected to increase its credit loss provisions in line with what has been seen across the financial industry.
PROVEN RESULTS POSSIBLY DELAYED
Since JMMBGL’s audited results are delayed, Proven Investments Limited will more than likely issue a release advising of a delay in the publication of its audited results ending March 31, 2020.
Proven owns 20.01 per cent of JMMBGL, 24.72 per cent of Access Financial Services (AFS) and 20 per cent of Dream Entertainment Limited, which make up its respective associated companies.
Despite AFS publishing its audited results last Tuesday, JMMBGL’s results form a material part of Proven’s financial statements. As seen in 2019, Proven released its audited results two days after JMMBGL released their results.
Proven, which is an investment holding company has had mixed results in recent times, with their additional public offering closing without an uptake and pipeline deals including an acquisition in the Caribbean being delayed due to COVID-19.
Even with these setbacks, Proven is still expected to close out their 2020 FY on a high, mainly due to the 25 per cent sale of AFS and growth across its private equity, real estate and treasury businesses.
Proven have also declared a dividend of US$0.0028 per share or a total of US$1.75 million to shareholders on record as of last Monday.