23 Dec 2019 12:51
This announcement contains inside information.
CARIBBEAN INVESTMENT HOLDINGS LIMITED - HALF-YEAR REPORT AND DIVIDEND DECLARATION
Belize City, Belize, December 23, 2019 -- Caribbean Investment Holdings Limited (London - AIM: CIHL; Bermuda - CIHL) (the "Company" or "CIHL")
HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2019
Highlights:
·; net income before non-recurring items for the six months of US$5.1m (2018 - net income of US$6.8m)
·; net income per ordinary share from continuing operations for the six months of US$0.12 (2018 - net income per share of US$0.07)
·; interest income for the six months decreased by US$0.3m due to reduced loan principal balances, offset by a US$0.4m decrease in interest costs for the six months
·; while prior year results included a credit for allowance for impairment of loans for the six months, the current year results reflect a charge of US$0.5 million contributing to the comparative decrease in net income before non-recurring items
·; interim dividend declared of US$0.07 per share
Financial Summary:
Caribbean Investment Holdings Limited | |||||
Financial Information | |||||
Consolidated statements of comprehensive income (unaudited) | |||||
US dollars in millions except per share data | |||||
Six months ended 30 September | 2019 | 2018 | |||
Financial Services | |||||
Interest income | 16.0 | 16.3 | |||
Interest expense | (2.5) | (2.9) | |||
Net interest income | 13.5 | 13.4 | |||
(Charge) credit of allowances for impairment of loans to customers | (0.5) | 1.3 | |||
Net interest income after allowance for impairment of loans | 13.0 | 14.7 | |||
Non-interest income | 4.0 | 5.4 | |||
Non-interest expense | (8.8) | (9.9) | |||
Operating income - Financial Services | 8.2 | 10.2 | |||
Corporate | |||||
Corporate income | 0.5 | 0.5 | |||
Corporate expenses | (1.6) | (2.0) | |||
Operating loss - Corporate | (1.1) | (1.5) | |||
Net income before tax and non recurring items | 7.1 | 8.7 | |||
Taxation | (2.0) | (1.9) | |||
Net income before non recurring items and before other comprehensive income | 5.1 | 6.8 | |||
Non recurring item ** | 7.2 | - | |||
Net income before other comprehensive income | 12.3 | 6.8 | |||
Other comprehensive income: | - | - | |||
Net gain on financial assets at FVOCI | - | - | |||
Total comprehensive income | 12.3 | 6.8 | |||
Income earnings per ordinary share (basic and diluted) | $ 0.12 | $ 0.07 | |||
** On 01 August 2019, 6,999,997 in share options expired; the non recurring item reflects the reversal of the related liability. | |||||
Caribbean Investment Holdings Limited | ||||||
Consolidated statements of changes in shareholders' equity (unaudited) | ||||||
US dollars in millions | ||||||
Additional | ||||||
Share | paid in | Treasury | Statutory | Retained | ||
capital | capital | shares | reserve | earnings | Total | |
$m | $m | $m | $m | $m | $m | |
At 01 April 2018 (restated opening balance under IFRS 9) | 0.5 | 52.8 | (21.7) | 7.0 | 40.7 | 79.3 |
Accumulated other comprehensive loss | - | - | - | - | 0.1 | 0.1 |
Net income | - | - | - | - | 10.7 | 10.7 |
At 31 March 2019 | 0.5 | 52.8 | (21.7) | 7.0 | 51.5 | 90.1 |
Accumulated other comprehensive loss | - | - | - | - | - | - |
Net income | - | - | - | - | 12.3 | 12.3 |
At 30 September 2019 | 0.5 | 52.8 | (21.7) | 7.0 | 63.8 | 102.4 |
Caribbean Investment Holdings Limited | ||||
Consolidated balance sheets (unaudited) | ||||
US dollars in millions | ||||
At 30 September | 2019 | 2018 | ||
Assets | ||||
Financial Services | ||||
Cash and cash equivalents | 10.4 | 10.1 | ||
Balances with the Central Bank of Belize | 45.6 | 47.5 | ||
Due from banks (net of allowances) | 41.8 | 21.6 | ||
Investment securities | 137.4 | 134.5 | ||
Loans to customers (net of allowances) | 238.7 | 240.3 | ||
Property, plant and equipment | 18.6 | 19.7 | ||
Due from Government of Belize (net of allowance) | 40.4 | 42.7 | ||
Other assets | 6.4 | 5.1 | ||
Total Financial Services assets | 539.3 | 521.5 | ||
Corporate | ||||
Cash, cash equivalents, and due from banks | 1.0 | 0.6 | ||
Other current assets | 0.4 | 0.2 | ||
Total assets | 540.7 | 522.3 | ||
Liabilities and shareholders' equity | ||||
Financial Services | ||||
Customer accounts | 429.5 | 424.2 | ||
Other liabilities | 7.8 | 7.9 | ||
Total Financial Services liabilities | 437.3 | 432.1 | ||
Corporate | ||||
Current liabilities | 1.0 | 7.9 | ||
Total liabilities | 438.3 | 440.0 | ||
Shareholders' equity: | ||||
Share capital (ordinary shares of no par value - | ||||
2019 (103,264,000) and 2018 (103,264,000) | 0.5 | 0.5 | ||
Additional paid-in capital | 52.8 | 52.8 | ||
Treasury shares | (21.7) | (21.7) | ||
Retained earnings | 70.8 | 50.7 | ||
Total shareholders' equity | 102.4 | 82.3 | ||
Total liabilities and shareholders' equity | 540.7 | 522.3 |
Caribbean Investment Holdings Limited | ||
Consolidated statements of cash flows (unaudited) | ||
US dollars in millions | ||
Six months ended 30 September | 2019 | 2018 |
Cash flows from operating activities | ||
Net income | 12.3 | 6.8 |
Adjustments to reconcile net income to net cash | ||
provided by operating activities: | ||
Depreciation | 1.2 | 1.0 |
Allowance for impairment on loans to customers | 0.5 | (1.3) |
Changes in assets and liabilities: | ||
Decrease in Government of Belize Receivable | 0.8 | 4.0 |
Decrease in other and current assets | 0.2 | 1.3 |
(Decrease) in other and current liabilities | (7.7) | (4.2) |
Net cash provided by operating activities | 7.3 | 7.6 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment (net of disposals) | (0.4) | (0.5) |
Increase in investment securities | (4.5) | (39.4) |
Decrease in loans (net of charge-offs) to customers | (2.3) | (1.2) |
Net cash utilized by investing activities | (7.2) | (41.1) |
Cash flows from financing activities | ||
(Decrease) in deposits | (0.9) | (10.8) |
Unrealized losses on securities | - | - |
Net cash utilized by financing activities | (0.9) | (10.8) |
Net change in cash, cash equivalents and due from banks | (0.8) | (44.3) |
Cash, cash equivalents and due from banks at beginning of year | 99.6 | 124.1 |
Cash, cash equivalents and due from banks at end of year | 98.8 | 79.8 |
Cash and cash equivalents - financial services | 10.4 | 10.1 |
Balances with Central Bank of Belize - financial services | 45.6 | 47.5 |
Due from banks (net of allowances) - financial services | 41.8 | 21.6 |
Cash, cash equivalents and due from banks - corporate | 1.0 | 0.6 |
98.8 | 79.8 |
INTERIM DIVIDEND
Given the improved financial performance of the business, supported by the turnaround in the performance of The Belize Bank Limited, the Board has approved an interim dividend of US$ 0.07 per share, being a total interim distribution of US$7 million. The Board expects that it will continue to make further distributions to shareholders through dividends from time to time, as may be appropriate considering the Company's financial position.
For ordinary shareholders who, as of the Record Date, are individuals and have a registered address in Belize on the Company's Register of Members, the dividend shall be paid in Belize dollars, converted at a rate of US$ 1.00 to BZ$ 2.00, and shall be settled on the BZD Payment Date.
For all other shareholders as of the Record Date, the dividend shall be paid in pounds sterling, converted at the rate of US$1.00 to GBP 0.77, and shall be settled on the GBP Payment Date.
Interim Dividend Payment Timetable:
·; Ex-dividend date: 2 January 2020
·; Record Date: 3 January 2020
·; BZD Payment Date (for shareholders receiving the dividend in Belize dollars): January 24, 2020
·; GBP Payment Date (for all other shareholders): January 24, 2020
For further information contact:
Caribbean Investment Holdings Limited
UK +44 (0)207 248 6700
Belize +501 227 7178
Cenkos Securities plc
Nicholas Wells +44 (0)207 397 8920
Note: This and other press releases are available at the Company's website: http://www.cihltd.co.
Background Information
Caribbean Investment Holdings Limited (CIHL) is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited (BBL) is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is one of the largest, full service commercial and retail banking operation with a head office in Belize City and eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.
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