August 12, 2020
Caribbean Assurance Brokers (CABROKERS), for the six months ended June 30, 2020, reported revenue of $139.61 million compared to the $148 million booked for the prior year, a 6% decrease. For the quarter, revenue went down by 5% closing at $69.52 million (2019: $73.09 million).
Other operating income totalled $14.54 million (2019: $19.57 million) for the six months ended June 30, 2020. As such, total operating income amounted to $154.16 million (2019: $167.57 million) for the six months ended June 30, 2020. The Company noted, “ the net decline in Commission Income of $3.5 million resulted from the reduction in commissions earned from the Individual Life Divisions of $7 million; however, this was partially offset by increases in commission from the General Insurance Division of $2.4 million and Employee Benefits Division $1 million.” Total operating income for the second quarter amounted to $71.64 million compared to $75.68 million recorded for the second quarter of 2019.
Total operating expenses totalled $162.80 million for the six months ended June 30, 2020, representing a decrease of 4% on the $170.12 million recorded in the prior year due to, “reduced commission expenses and advertising expenses along with administrative expenses being curtailed,” as noted by CABROKERS. Of this, Administrative expenses amounted to $111.70 million, 7% lower when compared to the $119.87 million in 2019. Selling expenses recorded a 2% increase for the six months totalling $51.10 million (2019: $50.25 million). For the quarter, total operating expenses closed the period at $77.93 million (2019: $83.40 million).
Operating loss, therefore, amounted to $8.64 million for the six months ended June 30, 2020 (2019: $2.55 million). However, for the second quarter ended June 30, 2020, CABROKERS booked an operating loss of $6.29 million relative to a loss of $7.71 million for the same quarter in 2019.
Finance cost amounted to $2.72 million (2019: $3.21 million). While, for the quarter, finance cost closed at $1.37 million versus $2.25 million in the previous comparable quarter.
Consequently, loss before taxation amounted to $11.36 million compared to a loss of $5.75 million in 2019. After incurring tax charges of $2.09 million (2019: nil), net loss amounted to $13.45 million compared to a loss of $5.75 million booked in the prior corresponding period. For the quarter, the Company reported a net loss of $8.81 million relative to a net loss of $9.96 million in the second quarter of 2019.
Total comprehensive loss amounted to $13.45 million compared to a loss of $5.75 million recorded in 2019. While for the quarter, total comprehensive loss was $8.81 million relative to a loss of $9.96 million in 2019.
Loss per share (LPS) closed the period at $0.05 (2019 LPS: $0.02), while for the quarter, the loss per share (LPS) was $0.03 (2019 LPS: $0.04). The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on August 12, 2020 at a price of $2.03.
Balance Sheet Highlights:
As at June 30, 2020, the Company’s assets totalled $639.86 million (2019: $464.99 million), 38% more than its value as at June 30, 2019. This was due to largely to increases in ‘Cash and cash balances’, ‘Property, plant and equipment’ and ‘Receivables’ which amounted to $141.81 million (2019: $67.89 million), $235.29 million (2019: $189.17 million) and $238.62 million (2019: $189.55 million). Notably, the Management stated, “this was attributable to (1) increase in property plant and equipment due to an increase in valuation of the office building; (2), increase in receivables associated with increased premiums from clients, and (3) increased cash and bank balance at the end of the period.”
Total Shareholders’ Equity totalled $287.40 million (2019: $123.64 million), which translated to a book value of $1.09 per share (2019: $0.47).
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