August 13, 2021
Caribbean Assurance Brokers (CABROKERS), for the six months ended June 30, 2021, reported revenue of $151.29 million compared to the $139.61 million for the prior year, an 8% increase. According to management this increase is mainly due to, “the net increases were from Int’l Insurance Division, General Insurance Division and Employee Benefits Division.” For the quarter, revenue went up by 10% closing at $76.21 million (2020: $69.52 million).
Other operating income totalled $16.75 million (2020: $14.54 million) for the six months ended June 30, 2021. As such, total operating income amounted to $168.04 million (2020: $154.16 million) for the six months ended June 30, 2021. Total operating income for the second quarter amounted to $80.71 million compared to $71.64 million recorded for the second quarter of 2020.
Total operating expenses totalled $186.23 million for the six months ended June 30, 2021, representing an increase of 14% on the $162.80 million recorded in the prior year. Of this, administrative expenses amounted to $126.91 million, 14% higher when compared to the $111.70 million in 2020. Selling expenses recorded a 16% increase for the six months totalling $59.32 million (2020: $51.10 million). For the quarter, total operating expenses closed the period at $92.94 million (2020: $77.93 million).
CABROKERS noted, “we had increases in expenses such as staff cost related to succession planning and to drive revenue growth in key areas of the business. Advertising and promotion increased due to the promotion of our revamped Credit Union Gold Series Member Plan. Depreciation due to addition to property, plant & equipment also increased over the previous quarter.”
Operating loss, therefore, amounted to $18.19 million for the six months ended June 30, 2021 (2020: $8.64 million). However, for the second quarter ended June 30, 2021, CABROKERS booked an operating loss of $12.24 million relative to a loss of $6.29 million for the same quarter in 2020.
Finance cost amounted to $2.98 million (2020: $2.72 million). While, for the quarter, finance cost closed at $1.50 million versus $1.37 million in the previous comparable quarter.
Consequently, loss before taxation amounted to $21.17 million compared to a loss of $11.36 million in 2020. After incurring tax charges of $147,073 (2020: $2.09 million), net loss amounted to $21.32 million compared to a loss of $13.45 million booked in the prior corresponding period. For the quarter, the Company reported a net loss of $13.44 million relative to a net loss of $8.81 million in the second quarter of 2020.
Total comprehensive loss amounted to $21.32 million compared to a loss of $13.45 million recorded in 2020. While for the quarter, total comprehensive loss was $13.44 million relative to a loss of $8.81 million in 2020.
Loss per share (LPS) closed the period at $0.08 (2020 LPS: $0.05), while for the quarter, the loss per share (LPS) was $0.05 (2020 LPS: $0.03). EPS for the trailing twelve months amounted $0.09. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on August 12, 2021 at a price of $1.91 with a corresponding P/E of 21.17 times.
Balance Sheet Highlights:
As at June 30, 2021, the Company’s assets totalled $702.27 million (2020: $639.86 million), 10% more than its value as at June 30, 2020. This was due to largely to increases in ‘Cash and cash balances’, ‘Property, plant and equipment’ and ‘Rights of use’ which amounted to $188.13 million (2020: $141.81 million), $249.99 million (2020: $235.29 million) and $18.28 million (2020: $7.32 million), respectively.
Total Shareholders’ Equity totalled $311.08 million (2020: $287.40 million), which translated to a book value of $1.19 per share (2020: $1.09).
Disclaimer:
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein