Mayberry Jamaican Equities (MJE) Reports Significant Losses for FY2022/23

  • Mayberry Jamaican Equities (MJE) concluded its financial year ending December 2023 with a substantial net loss of US$15.89Mn, a significant decline of US$49.09Mn (or 147.9%) compared to FY 2022.
  • Net unrealised losses on investments in associates of US$14.53Mn (-142.5%) was the primary driver of the falloff in earnings.
  • The persistent high-interest rate environment caused by elevated inflation levels continued to negatively impact the stock market throughout the financial year and the stock prices of its associates.
  • Notably, total operating expenses decreased by US$1.73Mn or 55.4% to US$1.39Mn, which tempered the impact of weaker revenues on the bottom line. With the losses incurred on the funds under management, there was a reduction in the incentive fees paid to the Investment Manager, and this accounted for the reduction in expenses.
  • Net Interest Expense also increased by more than doubled (+152.3%) to US$4.19Mn due to increased borrowings through margin loans from its parent company, Mayberry Investments Limited, for new investments.
  • MJE’s stock price has increased by 9.5% since the start of the calendar year. The stock closed Wednesday’s trading session at $10.89 and trades at a P/B of 0.8x, which is below the Main Market Financial Sector Average of 1.4x.

(Sources: Company Financials & NCBCM Research)