May 11, 2021
Caribbean Assurance Brokers (CABROKERS), for the three months ended March 31, 2021, reported revenue of $75.08 million compared to the $70.10 million booked for the corresponding period in the prior year, a 7% decrease. CABROKERS noted that this increase, “ was attributed to increase in our International Division $3.7M, Employee Benefit Division $1.2M and General Insurance Division $2.2M; however, the Individual Life Division declined by $2.2M.”
Other operating income totalled $12.26 million (2020: $12.42 million) for the three months ended March 31, 2021. As such, total operating income amounted to $87.34 million (2020: $82.51 million) for the twelve months ended March 31, 2021. According to management, this increase is as a result of, “three out of our four divisions had growth in commission while one division had a decline in commission over the previous quarter.”
Total operating expenses totalled $93.29 million for the three months ended March 31, 2021, representing an increase of 10% on the $84.88 million recorded in the prior year. Of this, Administrative expenses amounted to $63.30 million, 13% higher when compared to the $55.85 million in the same quarter of 2020. Selling expenses recorded an increase of 3% for the three months, totalling $29.99 million (2020: $29.02 million). The Company explained that the increase in operating expenses is due to, “ the strategic decision to increase our revenue generating capacity, this is starting to bear fruits as we have seen year over year growth in three of four business lines.”
Operating loss, therefore, amounted to $5.95 million for the three months ended March 31, 2021 relative to an operating loss of $2.36 million the prior comparable quarter.
Finance cost increased 11% to total $1.48 million (2020: $1.34 million).
Consequently, loss before taxation amounted to $7.43 million compared to a loss of $3.70 million in 2020. After incurring tax charges of $448,752 (2020: 939,569), as a result net loss amounted to $7.88 million, compared to a net loss of $4.64 million in the prior corresponding period.
Total comprehensive loss amounted to $7.88 million compared to a total comprehensive loss of $4.64 million recorded twelve months earlier.
Loss per share (LPS) closed the period at $0.03 relative to a loss per share of $0.02 the prior year. Trailing twelve months EPS amounted to $0.11. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on May 10, 2021 at a price of $1.98 with a corresponding P/E of 18.36 times.
Balance Sheet Highlights:
As at March 31, 2021, the Company’s assets totalled $573.68 million (2020: $515.22 million), 11% more than its value as at March 31, 2020. This was due to a 23% increase in ‘Receivables’ which amounted to $141.42 million (2020: $115.29 million). ‘Property, plant and equipment’ and ‘Rights of use’ also increased to close at $252.92 million (2020: $235.28 million) and $19.90 million (2020: $8.52 million), respectively.
Total Shareholders’ Equity totalled $324.52 million (2020: $296.21 million), which translated to a book value of $1.24 per share (2020: $1.13).
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 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.
