FIRSTROCK reports nine months net profit attributable to shareholders of US$1.88 million

Market News

November 11, 2021

November 11, 2021

FIRSTROCK Capital Holdings Group (FIRSTROCK), for the nine months ended September 30 2021, recorded total investment income of US$4.54 million (2020: US$4.80 million). Of this,

Rental income amounted to US$253,664 (2020: US$324,971).
Realised and unrealised gains on investments totalled US$3.16 million versus US$3.37 million reported in 2020.
Interest income closed at US$728,263 (2020: US$1.06 million) for the period under review.
Foreign exchange losses amounted to US$294,932 (2020: US$300,691).
Gain on acquisition of subsidiary totalled US$553,000 (2020: US$188,843).
Other income for the nine months amounted to US$137,437 (2020: US$153,356).

As for the third quarter the Company booked a total investment income of US$1.80 million compared to US$2.04 million booked for the corresponding period.

Total operating expenses amounted to US$2.64 million (2020: US$2.42 million). Of this,

Administrative and general expenses closed at US$2.24 million (2020: US$1.98 million), a 13% increase relative to the corresponding period in 2020.
Depreciation rose by 161% to total US$54,995 (2020: US$21,109).
Preference dividend amounted to US$152,475 (2020: US$296,702).
Allowance for credit losses closed at US$192,759 (2020: US$116,002)

While for the quarter, FIRSTROCK total operating expenses closed at US$1.08 million (2020: US$892,062).

As such, profit before taxation closed at US$1.90 million (2020: US$2.38 million). Taxation credit amounted to US$2,581 relative to the charge of US$13,346 a year prior. This resulted in net profit of US$1.90 million (2020: US$2.37 million) for the nine months ended September 30, 2021. Profit attributable to shareholders amounted to US$1.88 million (2020: US$2.40 million). Profit attributable to shareholders for the quarter amounted to US$700,882 (2020: US$1.15 million).

Furthermore, total comprehensive income amounted to US$2.11 million (2020: US$2.37 million). While for the quarter, total comprehensive income closed at US$715,682 (2020: $1.14 million).

Consequently, earnings per share (EPS) amounted to US$0.0066 (2020: US$0.0084) for the nine months ended September 30, 2021. Earnings per share for the quarter amounted to US$0.0025 (2020: US$0.0040). The trailing twelve months EPS amounts to US$0.0074. The number of shares used in this calculation was 286,025,318 shares. FIRSTROCKJMD closed the trading period on November 10, 2021 at J$10.85 while FIRSTROCKUSD closed at US$0.0700 with a corresponding P/E ratio of 9.89 times.

FIRSTROCK noted, “As we assess our strategies for the remainder of the year, we will continue to execute multi-jurisdictional asset allocation as it has proven to be a key feature of our risk-management strategy. We also intend to expand our presence within our domiciled country, St. Lucia.”

Balance Sheet at a Glance:

As at September 30, 2021, total assets closed at US$40.94 million (2020: US$35.16 million). This increase is primarily due to ‘Property Inventory’ which amounted to US$8.50 million (2020: nil). ‘Investment properties held for sale’ also contributed to the increase which closed at US$3.45 million (2020: nil).

Shareholder’s equity totalled US$31.67 million (2020: US$29.76 million) resulting in a book value of US$0.11 (2020: US$0.10).

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.