LASF reports 11% increase in year end net profits

Date: May 31, 2019

Lasco Financial Services Limited (LASF), recorded trading income of $2.12 billion, this represents a growth of 37% when compared to $1.55 billion posted in 2018 while trading income for the quarter amounted to $489.76 million (2018: $459.49 million).

Other income surged to $92.37 million versus $72.02 million in 2018. This resulted in overall income of $2.21 billion, a growth of 36% increase compared to $1.62 billion for the corresponding period in 2018. For the quarter, total income closed at $472.98 million (2018: $500.15 million).

Operating expenses amounted to $1.65 billion, 35% more than the $1.22 billion reported the year prior. Of this:

Administrative costs closed at $880.42 million (2018: $624.99 million).

Selling and promotional costs amounted to $765.64 million (2018: $593.04 million).

Despite the increase in total expenses, profit from operations grew by 41% to total $565.45 million relative to the $402.24 million booked last year. Profit from operations for the quarter declined to $98.43 million (2018: $101.96 million).

Finance costs increased to $168.80 million (2018: $66.82 million), resulting in a profit before tax of $396.65 million relative to the $335.42 million booked for 2018. For the quarter, profit before tax closed at $60.72 million (2018: $61.83 million).

Net profits closed the period under review at $281.76 million, 11% more than the $254.28 million posted the same period last year, followed by taxes for the period of $114.89 million (2018: $81.13 million). Net profit for the quarter amounted to $14.04 million (2018: $32.76 million).

Earnings per share amounted to $0.22 (2018: $0.20), while for the quarter EPS closed at $0.01 (2018: $0.03). The number of shares used in our calculations amounted to  1,264,694,391 units. LASF closed the trading period on May 30, 2019 at $4.93.

LASF noted that, “the steady growth in our loan portfolio and customer base and the addition of our new remittance partner towards the end of the financial year impacted performance positively. We also take the opportunity to point out that given our earnings cycle, the larger portion of our annual revenues is derived in the first three quarters. During the 2018/2019 last quarter, compounding the weaker sales period, was the lower than normal Cambio revenues due to the rapid revaluation of the Jamaican Dollar, impacting our profits.”

Balance Sheet Highlights:

As at March 31, 2019, the Company’s asset base closed the period at $3.89 billion, 15% more than its value a year ago. This increase was largely due to ‘Receivables’ and ‘Property, plant and equipment’ which closed at $2.37 billion (2018: $1.83 billion) and $158.94 million (2018: $136.67 million), respectively.

Shareholders’ equity attributable to stockholders of the company amounted to $1.59 billion relative to $1.37 billion in 2018. This translates to a book value per share of $1.26 (2018: $1.08).

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2019-05-31T17:15:19-05:00