Aug 2011 Financial News

Lascelles posts positive profit movement

Aug 10, 2011

Lascelles deMercado saw a 48 per cent rise in net profit for the three months ended June 30, 2011.

The conglomerate reported net income of $526.7 million for the review quarter compared to $363.1 million in the corresponding period of 2010.

Lascelles investment business segment drove profits upward wheras a 90 per cent increase in revenue for that segment led to a reversal of the $17.8 million loss it reported for the prior year into a profit of $122 million.

The company's general merchandising business followed with a 139 per cent increase in segment profit to $92 million while the general insurance segment posted 83 per higher profit, or $82.8 million for the review period compared to $45.3 million for the corresponding period the year prior despite a 26 per cent decline in segment revenue.

Lascelles flagship business segment -- which oversees its rum and sugar businesses -- posted 30 per cent higher revenue during the quarter but profit decilne by five per cent from $356.3 million to $338.2 million.

The conglomerate saw a decline in other income, from $161.7 million to $78.2 million but increased finance income from $40.8 million to $154.4 million.

Over the same period fincance cost fell dramatically from $131.7 million for the three months ended June 30, 2010, to $16.8 million during the review period.

Lascelles, which is controlled by CL Financial, is currently being bid on by William McConnell-led Black Sands, which offered to acquire no less than 90 per cent of the ordinary shares and 100 per cent of the preference shares in the conglomerate for approximately half the price CL Financial paid for it a few years before.

Lascelles' board appears to not see the offer as favourable, but creditors of CL Financial are have been waiting more than a year to be paid billions of dollars owed to them.

On July 24, CL defaulted on US$342 million of notes issued in Trinidad and Jamaica which are secured by a pledge of CL's shares in Lascelles.


Source:
Jamaica Observer
Wednesday August 10, 2011

http://www.jamaicaobserver.com/business/Lascelles-posts-positive-profit-movement_9409930#ixzz1UdcNSXEd