CABROKERS reports 18% decline in year end net prof

March 2, 2021

Caribbean Assurance Brokers (CABROKERS), for the year ended December 31, 2020, reported revenue of $370.64 million compared to the $401.48 million booked for the prior year, an 8% decrease. For the quarter, revenue went up by 140% closing at $156.97 million (2019: $65.42 million).

Other operating income totalled $26.28 million (2019: $33.75 million) for the year ended December 31, 2020. As such, total operating income amounted to $396.92 million (2019: $435.22 million) for the twelve months ended December 31, 2020. Total operating income for the fourth quarter amounted to $163.99 million compared to $68.01 million recorded for the fourth quarter of 2019.

Total operating expenses totalled $354.05 million for the year ended December 31, 2020, representing a decrease of 7% on the $381.06 million recorded in the prior year. Of this, Administrative expenses amounted to $232.82 million, 3% lower when compared to the $239.39 million in 2019. Selling expenses recorded a decrease of 14% for the year, totalling $121.23 million (2019: $141.66 million). For the quarter, total operating expenses closed the period at $104.83 million (2019: $90.48 million) due to a 24% increase in selling expenses to $38.87 million (2019: $31.38 million) and 12% increase administrative expense to $65.95 million (2019: $59.11 million).

Operating profit, therefore, amounted to $42.87 million for the year ended December 31, 2020 (2019: $54.17 million), reflecting a decrease of 21% year over year. However, for the fourth quarter ended December 31, 2020, CABROKERS booked an operating profit of $59.16 relative to a loss of $22.47 million for the same quarter in 2019.

Finance cost increased to total $5.28 million (2019: $7.87 million). While, for the quarter, finance cost closed at $1.31 million versus $2.58 million in the previous comparable quarter.

Consequently, profit before taxation decline to $37.59 million compared to $46.30 million in 2019. After incurring tax charges of $6.04 million (2019: $7.66 million), net profit amounted to $31.55 million, an 18% decrease when compared to $38.63 million in the prior corresponding period. For the quarter, the Company reported net profit of $54.94 million relative to a net loss of $18.05 million in the fourth quarter of 2019.

Total comprehensive income amounted to $31.55 million compared to $86.13 million recorded in 2019.

Earnings per share (EPS) closed the period at $0.12 (2019: $0.15), while for the quarter, the earnings per share was $0.21 (2019: LPS $0.07). The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on March 1, 2021 at a price of $1.75 with a corresponding P/E of 14.56 times.

Balance Sheet Highlights:

As at December 31, 2020, the Company’s assets totalled $592.02 million (2019: $476.47 million), 24% more than its value as at December 31, 2019. This was due to largely to a 40% increase in ‘Cash and bank balance’ which amounted to $155.79 million (2019: $75.80 million). ‘Property, Plant and Equipment’ also contributed to the increase, by amounting to $255.73 million (2019: $234.13 million), reflecting a 9% increase.

Total Shareholders’ Equity totalled $332.40 million (2019: $212.03 million), which translated to a book value of $1.27 per share (2019: $0.81).



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