Date: November 28, 2018
1834 Investments Limited (1834) held its Annual General Meeting today and was hosted by Acting General Manager, Terry Peyrefitte. The Acting General Manager opened the proceeding with an overview of the company’s operations as at the end of the 2017/2018 financial year. She indicated that the company has reinvented itself and transform from a media company to an investment firm. 1834 Investments Limited evolved as a result of the March 2016 merger of the media operations of the former Gleaner Company Limited with Radio Jamaica Limited (RJR).
Furthermore, Ms. Peyrefitte stated that, “1834 Investments has commenced the wind-up of four dormant local subsidiary companies namely Digjamaica.com Limited, Popular Printers Limited, Associated Enterprise Limited, Selectco Publications Limited and the non-operational Caribbean subsidiary company and 1834 Investments (Canada) Incorporated which was legally dissolved on June 22, 2018. However, the Company retained a 50% joint venture partnership in Jamaica Joint Venture Investments Company Limited (JJVI), which owns and manages the activities of properties.
“1834 has negotiated the early termination of a fifteen-year obligation to provide office space to RJR subsidiaries in Montego Bay and Toronto, which was created pursuant to the 2016 media amalgamation with RJR,” as highlighted by Ms. Peyrefitte.
Currently, “the Company’s investment portfolio is valued over $1.3 billion and is heavily weighted towards real estate which accounts for 57% or $746 million, whereas bond assets comprises of 29%, equities 10%, cash and short-term instruments 7% and loans 2% of total investments,” as mentioned by Management.
Ms. Peyrefitte spoke on the financial performance for the 2017/2018 financial year where the Company generated revenues of $161 million compared to $199 million the year before. She stated that, “this reduction was due to the combination of lower interest income and a reduced contribution from asset disposal gains relative to that of the prior year. Also, the decline in local interest rates in the financial period as well as the loss in income arising from tow early U.S. bond redemption by issuers accounted for the year over year decline in interest income.” Expenses increased to $117 million (2017: $104 million) due largely to an one-off charge incurred for the early termination of a fifteen-year obligation to RJR. Net profits was recorded at $82 million (2017: $12 million) from its consolidated operations in real estate and investments. There was a decline in the Company total assets to $1.75 billion (2017: $1.88 billion) due to cash used to settle various expenses over the period including dividends paid, reduction in bond asset valuations and real estate which was reclassified from ‘Investment Properties’ to ‘Asset Held for Sale.’ “146 Harbour Street was sold subsequently to the year-end which generated a small profit for the Company,” the Acting General Manager further indicated.
The Acting General Manager concluded her presentation by stating that, “although the company is without a major business, the Board is actively seeking new business investment opportunities and will continue to focus its efforts on maximizing shareholders’ return through its regular monitoring, evaluation and decision making on optimal asset allocation and company strategic direction.”
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein