PanJam Investment Limited boasts a long track record of consistent and growing profits based on a diversified portfolio of investments.
Q1 2018 Financial Highlights
Net profit attributable to stockholders of $827 million (2017: $830 million)
Return (annualised) on opening equity of 11% (2017: 13%)
Earnings per stock unit of $0.79 (2017: $0.79)
Ordinary dividend per stock unit of $0.25 declared (2017: $0.20)
Book value per stock unit of $29.04 at March 31, 2018 (December 31, 2017: $29.03)
Our net profit for the quarter is flat compared to last year, with lower investment income being offset by higher property income and stronger share of results of associated companies, led by Sagicor.
Net profit attributable to owners for the quarter ended March 31, 2018 amounted to $827 million (2017: $830 million). Earnings per stock unit were $0.79 (2017: $0.79).
Performance for the quarter was influenced positively by increases of $94 million in property income and $38 million in our share of results of associated companies, offsetting a decline of $67 million in investment income.
Group operating profit for the first quarter decreased by $16 million compared to 2017, as the increase in property income only partially offset the decrease in investment income and an increase of $38 million in operating expenses. Property income increased due to improved rentals and higher property revaluation gains. Investment income was negatively impacted by unrealised losses relative to unrealised and realised gains in the prior year, caused mainly by mark to market losses during the quarter on certain securities relative to year-end prices.
Operating expenses increased principally as a result of higher energy rates and updated actuarial calculations of group health and life costs. Finance costs increased 25% to $161 million (2017: $129 million) on higher debt balances.
Pre-tax profit of the property segment improved to $122 million (2017: $79 million) while that of the investment segment declined to $675 million (2017: $731 million).
The results of associated companies consisted principally of our 31.6% investment in Sagicor. We also hold minority positions in New Castle Company Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Caribe Hospitality of Jamaica Limited (owners of the New Kingston Courtyard Marriott Hotel) and Chukka Caribbean Adventures (“Chukka”).
Our share of results of associated companies for the quarter increased by $38 million to $856 million (2017: $818 million). Our share of earnings from Sagicor increased by $15 million (2%) to $824 million. Sagicor’s first quarter results reflect strong new business in its employee benefits and individual life lines as well as favourable claims experience. Newcastle, Chukka and Caribe performed satisfactorily during the period.
Total assets at March 31, 2018 amounted to $39.2 billion, compared to $39.4 billion at December 31, 2017. Stockholders’ equity of $30.5 billion was flat relative to December 31, 2017. This equates to a book value per stock unit of $29.04 (December 31, 2017: $29.03).
The IMF’s recent Executive Board Review spoke to the continuation of Jamaica’s fiscal and economic improvement. Among other things, it pointed to achievement of all quantitative and structural benchmarks through December 2017, unemployment being at a 10-year low, modest inflation and current account deficit and a projected timeline of March 2019 for the debt to GDP ratio to fall under 100%.
Against this backdrop, PanJam is actively engaged in deploying resources into Jamaican assets with the potential to deliver gains either through development or increased business. We continue to like the hospitality space as well as Jamaican equities, with a focus on companies with strong management and strategies that align well with emerging opportunities.