May 15, 2019

 

ISP Finance Services Limited (ISP)for the three months ended March 31, 2019, reported total interest income of $86.23 million compared to $70.46 million in 2018, an increase of 22%. Total income is broken down as follows:

Interest expense totaled $7.59 million relative to $5.63 million in 2018; this represents a 35% rise. As a result, net interest income grew by 21% to total $78.64 million (2018: $64.83 million).

Commission expense fell 28% to $696,652 (2018: $966,976 million). Gross profit for the quarter amounted to $77.94 million, 7% move than the $64.01 million in 2018.e

The company’s total operating expense amounted to $61.96 million, up 13% from $54.85 million in 2018, ISP highlighted that, “the Company maintained its cost of operations while meeting greater customer demands. The newly established customer sales contact center is our focus as this will result in the development of new products and markets across several delivery channels.” The expenses for the period are broken down as follows:

• • Staff costs amounted to $31.73 million (2018: $27.16 million).
  • Allowance for credit loss totaled $8.00 million (2018: $7.50 million).
  • Depreciation was $1.31 million (2018: $1.40 million).
  • Other operating expenses amounted to $20.92 million (2017: $18.80 million).

Profit before taxes totaled $15.99 million (2018: $9.15 million).  No taxes were booked for the period, resulting in a net profit of $15.99 million relative $9.15 million in for the first quarter of 2018, a 75% growth year over year.

As a result, EPS for the quarter closed at $0.15 (2018: EPS $0.9). The trailing twelve months EPS amounted to $0.48  The number of shares used in our calculations is 105,000,000 units. Notably, ISP closed the trading period on May 15, 2019 at a price of $11.20.

 

Balance Sheet Highlights:

As at March 31, 2019, ISP reported total assets of $643.80 million, a 25% increase when compared to $517.01 million in the prior year. ‘Property, Plant and Equipment’ and ‘Loans net of provisions for credit losses’ contributed to this increase closing the period at $26.43 million (2018: $19.68 million) and $571.73 million (2018: $446.18 million), respectively.

Shareholders’ Equity as at March 31, 2019 was $336.38 million compared to a $295.42 million in 2018. This resulted in a book value per share of $3.20 compared to $2.81 the prior year.

 

 

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.