ItsMoneyMark Newsletter #88

An Intriguing IPO to end 2022 and Start 2023 with a Bang! 

What’s coming and it feels good, almost like a surprise, it has happened suddenly, like Boom! The prospectus has appeared and this one, has some seriously good net profits, and net margins upon preliminary review. We like that. 

The IPO, initial public offer invitation opens December 28, 2022, and closes January 11, 2023. This one should go fast, like hot bread, like most of the recent Junior IPO issuances especially as we re-iterate the numbers. 

So, what’s the name, the deal here? 

IMAGEPLUS Consultants Ltd. trading as “Apex Radiology”

The Fundraise, just under J$ 500 million. 

  • Last audited numbers (Feb 2022), saw revenue of J$ 777 million with profit before tax of J$ 113 million 
  • Well, even more impressive, management accounts (Aug 2022), saw 6 months revenue of J$ 554.8 million with profit before tax (“PBT”) of J$ 152.7 million 
  • On the 6 months unaudited numbers, that represents an amazing, a wow PBT margin of 27.5%

Sometimes it’s the “quiet ones” that are the winners and the ones that deliver the profitability… 

Market Moves: 

  • Supreme Ventures Limited (JSE: SVL), the continued strong “company insider” purchases continue and that’s a great look 👀 and sign if you are a minority shareholder or considering getting into SVL as we continue to mention at ItsMoneyMark and our previous Newsletters

Between December 9 – December 15, 2022, a related entity purchased a total of 500,000 shares of SVL

SVL since our last newsletter share price has rallied a bit and is now closer to its 52-week high. Now trading on or around J$ 29/ J$ 30 per share versus J$ 27, just a little while ago. 

  • Salada Foods Jamaica (JSE: SALF), one of the quiet, understated companies on the JSE, continues to roll, with another strong earnings report and year-end. 

Earnings for SALF were + 13.3% higher, hitting J$ 175.4 million or J$ 17 cents per share. Shareholder’s equity closed the year-end, September 30, 2022, at J$ 1.05 billion. 

The Chairman of SALF, Mr. Patrick Williams, specifically spoke to new products, initiatives, Flavoured Coffee line, including Coconut Cappuccino, Caramel and Cinnameg, that helped bolster the results achieved.

  • Tropical Battery Company (JSE: TROPICAL) with a lovely dividend here. TROPICAL shareholders should be happy, happier, and happiest with this one. Talk about their earnings as well which we will get to. Based on their year-end earnings, just some time ago, 12-24 months ago or so, they would have been at 6x – 7x earnings back then. Now that’s the type of growth you want to see and clearly, they, TROPICAL have executed their business strategy.

Back to the dividend, TROPICAL delivers “cash back” to shareholders of J$ 4 cents per share. 

Payment to be made on January 30, 2023. 

  • We stick with TROPICAL, and look at, and digest their earnings for their year ended September 30, 2022. These are their audited financial numbers. 

Revenue jumped to J$ 2.62 billion, from J$ 1.99 billion, increasing by 32%, year over year. Earnings per share, hit J$ 15.2 cents versus J$ 6.8 cents, increasing by a whopping 124%, just a phenomenal year-end number by TROPICAL

Net profit registered by TROPICAL was J$ 197 million. 

  • Scotia Group Jamaica (JSE: SGJ) has been on the move as of late and it is extremely well received by Mr. Market, the JSE, and their many ordinary shareholders, at SGJ

It now seems like SGJ has awoken. We say this at ItsMoneyMark as, a few notable and continuous corporate actions have occurred, quite briskly.

Scotia Group Jamaica’s recent Executive appointments and positive moves, their earnings showing well needed growth and results, especially the loan book, not just the net profit, and now, not just 1-2 Director appointments, but 3 Director appointments to the Board. 

We see a difference now, and as we have always said at ItsMoneyMark, we wanted to see that overall difference as for some time, quite a long time, Scotia Group Jamaica was really lagging its commercial banking peers on the JSE

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