16 May 2008 07:00
BB HOLDINGS LIMITED ANNOUNCES RESULTS FOR THE
YEAR ENDED MARCH 31, 2008
Belize City, Belize, May 15, 2008 -- BB Holdings Limited (London - AIM: BBHL) (the "Company") reported net income from continuing operations of $16.8m (2007 -- $12.5m) for the quarter ended March 31, 2008, the fourth quarter of fiscal 2008. Earnings per share from operations for the quarter ended March 31, 2008 was $0.28 (2007 -- $0.21).
Net income and earnings per share from operations for the year ended March 31, 2008 amounted to $60.4m (2007 -- $45.4m) and $1.02 (2007 -- $0.76), respectively.
Commenting on performance, Chairman, Lord Ashcroft, KCMG, said:
"The strategy of consistently reinvesting our retained earnings in the business together with the benefits of $100 million in new funding has produced another excellent performance from the Financial Services division".
"The Turks and Caicos operation has turned in a year of significant growth helping raise the quality and quantity of the Financial Services US dollar earnings. Over 60 per cent of Financial Services net income is now earned in US dollars."
"The Financial Services division performance was complemented by a record contribution from Numar helping the Company exceed $1.00 in earnings per share for the first time in its history"
Financial Services reported one of its best quarters ever for the quarter ended March 31, 2008. Operating income for the quarter, net of corporate interest on the $100 million loan notes, increased by 18.6 percent to $13.4m (2007 -- $11.3m).
Operating income, net of corporate interest on the $100 million loan notes, for the twelve months ended March 31, 2008 increased by 16.8 percent to $46.0m (2007 -- $39.4m).
The Company's share of Numar's earnings increased by 97.9 percent to $19.2 million for the twelve months ended March 31, 2008. Market prices of crude palm oil have remained at a high level with new investment in production capacity continuing to enhance sales and gross margin.
Background Information
The Financial Services division operates principally through the Belize Bank in Belize and the Turks and Caicos Islands. In Belize, the Bank is the largest, full service commercial and retail banking operation with a head office in Belize City and thirteen branches extending into each of the six districts of Belize. The principal operations of the Bank are commercial lending, consumer lending, deposit-taking and related banking activities. In Turks and Caicos the Bank is one of the largest commercial lenders and is expanding rapidly.
The Company's associate, Numar, owns edible oil processing and distribution operations and palm seed plantations principally in Costa Rica, where they are market leaders in edible oils, margarine, industrial oils and animal feed.
For further information contact:
BB Holdings Limited Makinson Cowell
Belize +501 227 7178 1 (212) 994 9044
UK +44 (0)20 7248 6700
Note: This and other press releases are available at the Company's web site: http://www.bbholdingslimited.com.
BB Holdings Limited
Financial Information
Summarized Consolidated Statements of Income (unaudited)
US dollars in millions except per share data
| 3 months ended March 31, 2008 | 3 months ended March 31, 2007 | Year ended March 31, 2008 | Year ended March 31, 2007 | |
| Financial Services Interest income | 26.4 | 15.7 | 88.8 | 63.9 |
| Interest expense | (7.2) | (5.9) | (26.5) | (21.5) |
| Net non-interest (expense) income | (3.3) | 1.5 | (9.7) | (3.0) |
| Financial Services operating income | 15.9 | 11.3 | 52.6 | 39.4 |
| Corporate expenses | (2.4) | (1.6) | (5.1) | (4.3) |
| Associates | 5.7 | 2.7 | 19.2 | 9.7 |
| Interest (expense) income | (2.4) | 0.1 | (6.3) | 0.6 |
| Net income | 16.8 | 12.5 | 60.4 | 45.4 |
| Earnings per ordinary share: Basic and Diluted: | ||||
| Net income | $0.28 | $0.21 | $1.02 | $0.76 |
| Number of shares - basic & diluted | 59.1m | 59.6m | 59.1m | 59.6m |
BB Holdings Limited
Financial Information
Summarized Consolidated Balance Sheets (unaudited)
| March 31 2008 $m | March 31 2007 $m | |
| Assets Financial Services assets | ||
| Cash, cash equivalents and due from banks | 43.9 | 41.2 |
| Interest-bearing deposits with correspondent banks | 127.1 | 94.0 |
| Loans - net | 761.1 | 508.5 |
| Property, plant and equipment - net | 17.0 | 14.8 |
| Government of Belize Securities | 5.0 | 5.0 |
| Other assets | 33.8 | 34.7 |
| Total financial services assets | 987.9 | 698.2 |
| Cash and cash equivalents | 0.2 | 5.2 |
| Other current assets | 0.4 | 0.6 |
| Property, plant and equipment - net | 0.1 | 0.1 |
| Associates | 79.2 | 63.6 |
| Total assets | 1,067.8 | 767.7 |
| Liabilities and shareholders' equity Financial Services liabilities | ||
| Deposits | 641.1 | 504.8 |
| Short-term debt | 0.0 | 6.0 |
| Interest Payable | 9.7 | 7.1 |
| Other liabilities | 10.7 | 6.3 |
| Long-term debt | 12.5 | 12.5 |
| Total Financial Services liabilities | 674.0 | 536.7 |
| Current liabilities | 4.2 | 1.8 |
| Long-term liabilities | 1.2 | 1.2 |
| Long-term debt | 100.0 | 0.0 |
| Total liabilities | 779.4 | 539.7 |
| Total shareholders' equity | 288.4 | 228.0 |
| Total liabilities and shareholders' equity | 1067.8 | 767.7 |
BB Holdings Limited
Financial Information
Summarized Consolidated Statement of Cash Flows (unaudited)
| For the year ended March 31 | 2008 $m | 2007 $m |
| Cash flow from operating activities | ||
| Net income | 60.4 | 45.4 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation | 1.2 | 1.2 |
| Provision for loan losses | 8.3 | 4.0 |
| Undistributed earnings of associates | (15.6) | (6.3) |
| Increase in interest payable | 2.6 | 2.3 |
| Changes in assets and liabilities - net | 7.9 | (16.6) |
| Net cash provided by operating activities | 64.8 | 30.0 |
| Cash flows from investing activities | ||
| Purchase of property plant and equipment (net of disposals) | (3.4) | (4.4) |
| Increase in interest-bearing deposits | (33.1) | (40.4) |
| Decrease in Government securities | 0.0 | 8.5 |
| Increase in loans to customers | (260.9) | (125.9) |
| Net cash utilized by investing activities | (297.4) | (162.2) |
| Cash flows from financing activities | ||
| (Decrease) increase in short-tem debt | (6.0) | 6.0 |
| Increase in deposits | 136.3 | 129.3 |
| Increase (decrease) of long-term debt | 100.0 | (2.5) |
| Purchase of treasury shares | 0.0 | (3.4) |
| Net cash provided by financing activities | 230.3 | 129.4 |
| Net change in cash, cash equivalents and due from banks | (2.3) | (2.8) |
| Cash, cash equivalents and due from banks at beginning of year | 46.4 | 49.2 |
| Cash, cash equivalents and due from banks at end of year | 44.1 | 46.4 |