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Mayberry Jamaican Equities posts US$37 million in year end losses

Mayberry Jamaican Equities Limited (MJE) reported total comprehensive loss amounted to US$37 million for the year ended 31 December 2020.

When compared to total comprehensive income of US$33.6 million for the corresponding period of 2019, this reflected a decrease of US$70.5 million. 

This company’s management attributed the decrease mainly to lower revaluation gains resulting from adverse price movements for stocks held in the equity portfolio

Gary Peart (eft), CEO of Mayberry Investments Limited, and Executive Chairman of Mayberry Investments Limited Christopher Berry (right) share a laugh with Deputy Chairman and CEO of the Sandals/ATL Group Adam Stewart (File photo)

As at December 31, 2020, net book value per share moved to US$0.07, a US$0.04 decline over the corresponding period in 2019, due to a reduction in investment securities of US$47.5 million.

Trading in shares

For the final quarter, October to December 2020, MJE traded volumes of  16.14 million units on the Jamaica Stock Exchange (JSE) versus 5.84 million units when compared to October to December 2019. 

In the third quarter, July to September 2020, the company traded 1.69 million units. 

MJE, in its analysis, noted that the Jamaica economy contracted 10.7 per cent for the July to September 2020 quarter compared to the same quarter of 2019, largely due to the negative impact of the continued spread of the novel coronavirus (COVID-19) and measures to limit its spread.

Mayberry-Investments

“Consequently, the performance stemmed from declines in the services industry and goods-producing industries by 13.1per cent and 3.5 per cent respectively,” the continued.

During calendar year 2020, the exchange rate devalued by 7.6 per cent or JM$10.08 to JM$142.65. For the period January to December 2020, the JSE Main Market Index declined by 114,301.51 points or 22.4 per cent from 509,916.44 to 395,614.93 points.

Local and global stock markets continued to be impacted negatively by the outbreak of the virus.

The JSE Junior Market reported a similar downward trend and closed December 2020 at 2,643.38 points when compared to 3,348.97 points as at December 31, 2019, a 21.1 per cent decline over the twelve-month period. 

MJE’s stock price closed at J$7.99 on December 31, 2020.

Solid asset base

For the year ended December 31, 2020, MJE reported total assets of US$99.8 million compared to US$150.7 million for the comparative 2019 period. 

This represents a US$51-million or a 34 per cent decrease in the company’s asset base due mainly to reduced values of quoted equities, particularly, Lasco Financial Services Limited, Blue Power Group Limited, Caribbean Producers Jamaica Limited.

Management stated, “Mayberry Jamaican Equities’ capital base remained resilient despite the negative shocks on the global and local financial markets to close the year at US$83.8 million when compared to US$130.2 million for December 2019.”

Retained earnings moved to US$29.9 million from US$41 million, and fair value reserves closed 2020 at US$33.4 million versus US$68.9 million for 2019.

More equity investments

MJE net purchase 308.7 million units of stocks for the financial period ended 31 December 2020.  The company added new securities to the portfolio including GraceKennedy Ltd, Caribbean Assurance Brokers Ltd and Carreras Group Ltd. 

MJE also acquired additional shares in Wigton Windfarm Limited and closed this position for 2020 with 1.06 billion stock units in hand.

At present, the company holds stock in 31 companies listed on the main and junior markets of the JSE. 

For the year ended December 31, 2020, MJE reported dividend income of US$2.3 million, representing an 18 per cent decline when compared to US$2.8 million reported in 2019. 

Supreme Ventures Limited contributed the most to MJE’s dividend revenue line was with dividends of US$2M.

“Despite the challenges faced by the company due to the deterioration of market conditions management remains confident that the company is well poised for recovery and growth in the medium to long term,” MJE stated.

“However, management is aware that a long duration of the pandemic and the associated containment measures could have a material adverse effect on the company,” the company added.