RBTT fired up, N&M revenues slide

Profit attributable to shareholders increased by an impressive 39.36 percent from $576.325 million in 2003 to $803.140 million in 2004.  This excellent performance was as a result of an improvement in most of the group’s operating activities. Total net income increased by 23.70 percent from $2.036 billion in 2003 to $2.518 billion in 2004 due to a 17.17 percent increase in the group’s net interest income and a 33.09 percent increase in other income. Group operating profit increased by an even greater margin up 40.08 percent to $929.520 million 2004 compared to $663.555 million in 2003 as the group non-interest expense rose by a slightly lower rate of 15.77 percent over the period.  Profit before taxation grew by 40.65 percent to $974.160 million in 2004 from $692.611 million in 2003.

The group’s share of profits from associated companies increased by 53.63 percent to $44.640 million in 2004 from $29.056 million in 2003 as a result of the acquisition of 20 percent of Guardian Holdings in 2003.  During the second half of 2003 the group had converted its 20 percent interest in the insurance subsidiaries of Guardian Holdings into 29.9 million Guardian Holdings shares and acquired additional shares to take its holdings to the 20 percent level. Profit after taxation increased by 38.72 percent to $811.768 million in 2004 fro $585.190 million in 2003.  Group earnings per share moved up by 66 cents to $2.35 from $1.69 earned in 2003, an increase of 39.05 percent. Total assets grew by 13.89 percent to $33.404 billion in 2004 compared to $29.331 billion in 2003 due mainly to a solid growth in loans and advances which increased by 22 percent for the period under review. 

There was also an improvement in the quality of the group’s loan portfolio with the ratio of non-performing loans reducing from 6.23 percent in 2003 to 5.22 percent in 2004.  Customer deposits also grew by a healthy margin, up 14 percent, an increase of $2.2 billion. Return on assets increased to 2.59 percent in 2004 compared to 2.05 percent in 2003 and return on equity also increased, to 28.6 percent in 2004 from 25.9 percent in 2003. The Board of Directors has declared the payment of a final dividend of 61 cents based on these results, bringing the total dividend payout for the full financial year to $1.00, an increase of 43 percent over last year’s dividend.  The dividend will be paid on June 10, 2004 to all shareholders on the register as at May 24, 2004. The share is presently trading at a price/earnings ratio of 19.15 given the current price of $45.00 ex-dividend.

Neal and Massy
Holdings Limited
Half year results for the
period ended March 31, 2004

Group third party revenue increased by a marginal 3.38 percent from $1.145 billion in 2003 to $1.463 billion in 2004.  Operating profit however rose sharply, increasing by 23.47 percent to $112.210 million in 2004 compared with $90.877 earned in 2003, an indication that the group was able to efficiently mange its expenses despite the marginal increase in revenue. Profit before taxation moved up by 25.70 percent to $129.474 million in 2004 from $103.006 in 2003, as a result of a steep increase in share of profits from associated companies of 42.34 percent. This increase was attributable to the continued good financial performance of the group’s main associated company, Barbados Shipping and Trading, in which the group continues to maintain a 20 percent interest.

Profit after taxation rose by 19.97 percent from $80.004 million in 2003 to $88.787 million in 2004. There was a slight increase in the group’s effective tax rate over the period under review to 25.87 percent from 22.33 percent in the similar period in 2003. Profit attributable to shareholders improved by 20.29 percent, from $73.811 in 2003 to $88.787 million in 2004. Earnings per share for the half year 2004, reached $1.00 which was 20.48 percent better than $0.83 earned in 2003. The Board of Directors has declared the payment of an interim dividend of $0.26 per shares, payable on June 4, 2004 to all shareholders on the Register as at May 25, 2004. Based on these results we are forecasting a full year’s earnings per share of $2.30. At the current market price of $30.45, given this estimate, we believe that there is room for capital appreciation as the share is presently trading at an attractive price earnings ratio of 13.24 times.

Agostini’s Limited
Half Year results for the
period ended March 31, 2004

There was a significant decline in the company’s net profit for the half year ended March 31, 2004.  Net profit fell by 60.61 percent from $5.009 million in 2003 to $1.973 million in 2004.  This decline was largely as a result of the poor performance of the manufacturing subsidiaries and a slower than expected award of contracts in the group’s building division. The company also continues to experience increased losses from the diaper operation, which is expected to continue well into the second half of the current financial year, 2004. Group turnover increased by a marginal 8.72 percent to $146.816 million in 2004 compared to $135.044 million generated in 2003.  Profit before taxation fell by a steep 56.61 percent to $2.904 million in 2004 from $6.693 million in 2003 as losses and expenses continue to out pace revenue generated.

Profit after taxation declined by 60.64 percent from $5.033 million in 2003 to $1.981 million in 2004.  Consequently earnings per share decreased to 7 cents in 2004 compared to 19 cents earned in 2003, a decline of 63.16 percent. The Chairman in his report indicated the possibility of some improvement in these results in the second half of 2004.  The points that were mentioned were: The generation of  $17.9 million in cash during the last six months which will be used to fund expansion into two new areas. Rationalisation of the diaper operations. The setbacks which the group experienced at Agos Lighting due to a rapid increase in steel prices is expected to not recur in the second half.

A pick up in activity in the group’s construction division due to new developments which are expected to contribute significantly to the group’s profit over the next two years. The Board of Directors have declared the payment of an interim dividend of 3 cents for the half year based on these results compared to 7 cents paid in the similar period in 2003.  This dividend will be paid on June 14, 2004 to all shareholders on the register as at May 26, 2004. Based on these results we are forecasting an earnings per share for the full financial year of 20 cents.  At the current price of $8.35 based on this estimate the share is trading at a price/earnings ratio of 41.75 which is very high compared to other companies trading in the similar sector.

Readymix (West Indies) Limited
First quarter results for the period ended March 31, 2004

Group net profit increased by an impressive 122.95 percent for the first quarter ended March 31, 2004 from $0.305 million in 2003 to $0.680 million in 2004.  While there was a shut down in the group’s main project (ALNG Train 4) during the first quarter, the continued buoyancy of the local premix concrete market helped mitigate any adverse effects of this shutdown in performance of the company. The local market was however the major contributor to this impressive increase in profitability as there was a slow down in the premix concrete market in Barbados which affected the group’s subsidiary, Premix and Precast Concrete Incorporated.

Operating profit increased by 47.05 percent from $1.101 million in 2003 to $1.619 million in 2004.  This improvement was as a result of a healthy increase in revenue for the first quarter by 21.09 percent to $33.398 million in 2004 compared to $27.581 million in 2003. Profit before taxation moved up to $1.034 million in 2004 from $0.607 million in 2003, an increase of 70.35 percent despite an increase in finance cost of 18.42 percent. Profit after taxation improved by an even greater margin, increasing by 83.42 percent to $0.686 million in 2004 compared to $0.374 million in 2003.