May 2006 Financial News

Readymix Releases Year End (2005) & First Quarter Results (2006)

May 31, 2006

Readymix reported negative Earnings Per Share (EPS) of 210 cents for the year ended December 31, 2005 down 2433.33 per cent from 2004’s EPS of 9 cents. The dismal bottom line was in part the result of a thorough review done on the accounting records of the Company as commissioned by the Board during the second quarter of 2005. The review found certain charges to the Profit and Loss of the Company which were unusual and not expected to reoccur. The main contributors were bad debt provisions, raw material losses and impairment charges for its subsidiary in St Maarten. Because of this, 2004’s statements had to be restated for expenses previously unrecorded.

Though Revenue increased 20.97 per cent to $183.943 million, the Company’s operations made a loss of $26.093 million compared to a profit of $4.344 million in 2004. Profit Before Taxation fell 2425.76 per cent to a loss of $30.793 million while Profit After Tax fell 2249.83 per cent to a loss of $25.970 million for the year ended 2005.

Revenue for the First Quarter ended March 31, 2006 was up 36.38 per cent to $51.448 million while the Company’s Operating Profit increased 14.07 per cent to $2.286 million. Profit Before Tax however was down 18.47 per cent to $0.914 million while Profit After Tax fell 44.15 per cent to $0.420 million. The first quarter EPS declined 50.00 per cent from 6 cents for 2005 to 3 cents in 2006.

Given the current running negative earnings per share of 213 cents, at the current price of $3.80 we recommend a SELL on this share.


Sreshtha Tewari
WISE Research Team