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).
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.