Date: May 15, 2018
Eppley Limited (EPLY), for the first three months ended March 31, 2018 reported interest income of $73.71 million an increase of 18% when compared to the $62.54 million recorded the previous year.
Interest expenses amounted to $45.11 million, a 22% increase when compared to $36.86 million for the corresponding period in 2017.
Consequently, net interest income increased 11% to $28.61 million from $25.68 million for the corresponding period of 2017.
Other operating income rose by $5.29 million to a total of $15.38 million relative to $10.09 million in 2017. Administrative expenses climbed by 20% to close at $24.31 million from $20.29 million the previous year. Notably, Eppley booked $1.01 million for Share of Net profit from Joint Venture compared to $467,000 for the prior financial year.
As such, pre-tax profit closed at $20.68 million for the financial year, 30% more than the $15.94 million booked in 2017. No taxes were recorded for the period, hence net profit attributable to shareholders amounted to $20.68 million (2017: $15.94 million).
Earnings per share for the quarter amounted to $0.11 (2017: $0.08). The trailing twelve months EPS is $0.38. The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY’s stock price closed the trading period on May 14, 2018 at $8.35.
EPLY noted, “at the end of the quarter we owned a $2.6 billion investment portfolio consisting mainly of loans, leases and receivables. The average income yield of our portfolio was 14%. Our capital at risk was less than 1% of capital.”
Also, the company noted that they have completed the “acquisition of the unlisted ordinary shares of the Fortress Caribbean Property Fund SCC Limited, and its name was renamed by shareholder’s vote to Eppley Caribbean Property Fund SCC Limited.”
Balance Sheet Highlights:
As at March 31, 2018, total assets amounted to $2.69 billion (2017: $2.05 billion), 31% more than its value a year ago. The increase in assets was driven primarily by increases in ‘Cash and Deposits’ by $286.21 million to close at $436.78 million (2017: $150.56 million). Investment Securities increased by $179.49 million (2017: Nil) also aided the movement in total assets.
Shareholder’s Equity as at March 31, 2018 totalled $694.93 million (2017: $676.53 million) resulting in a book value per share of approximately $3.61 relative to $3.52 in 2017.
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.