May 2007 Financial News

PUB Releases First Quarter Results

May 21, 2007

Results for the First Quarter Ended March 31, 2007

For the First Quarter Ended March 31, 2007, Trinidad Publishing Company Limited (PUB) reported Earnings Per Share (EPS) of 19 cents. This represented a significant increase of 18.75 per cent or 3 cents on the comparable period of fiscal 2006.

For the period under review, Turnover amounted to $38.358 million, up 13.55 per cent or $4.576 million on Q106. Income Before Taxation rose a considerable 24.15 per cent or $2.038 million on the same period of the previous financial year. The Effective Tax Rate for the first quarter of 2007 was 25 per cent compared to a similar Tax Rate of 25.10 per cent for Q106. Thus, Income After Taxation stood at $7.857 million, up a substantial 24.32 per cent or $1.537 million on the $6.320 million reported on the corresponding period in 2006.

According to the Chairman, Mr. Dennis Adrian Gurley, the achievement of these results was driven primarily by the Company’s investment in product improvement, brand strengthening and human resource development. He expects that this momentum will continue over the remainder of the financial year.

Currently, PUB is trading at a price of $20.50 and at our current forecasted EPS of $1.45, this share is trading at a price to earnings multiple of 14.14 times. Additionally, using a multiple of 17 times and the forecasted EPS of $1.45, PUB has an expected return of approximately 20 per cent on the current price or a target price of $24.65. In light of these results, we continue to recommend a BUY on this share.

Nancy Chen
WISE Equity Research Team