Feb 2008 Financial News

BST Releases First Quarter Results (Q108)

Feb 22, 2008

Results for the First Quarter Ended December 31, 2007

All figures quoted in Barbados Dollars unless otherwise stated

Earnings Per Share
For the First Quarter Ended December 31, 2007, Barbados Shipping & Trading Company Limited (BST) reported Earnings Per Share (EPS) of 22 cents, up 4 cents or 22.2 per cent on Q107. During the quarter, the Joint Venture which owned the property occupied by Pricesmart was sold and a gain on the disposal was realized. Excluding this gain, the Group’s EPS was down 2 cents or 11.1 per cent from 18 cents (Q107) to 16 cents (Q108).

Financials
Q108 on Q107, Revenue rose 9.6 per cent or $19.72 million to $225.5 million. Operating Profit was down a minimal 2.6 per cent or $0.5 million to $18.1 million. The Directors stated that this was due primarily to a large claim experienced by United Insurance as well as the increased cost of goods. Profit Before Tax amounted to $19.1 million, up 26.5 per cent or $4 million from $15.1 million in Q107. Profit After Tax ended the period at $17.1 million, up 19.3 per cent or $2.8 million.

Recommendation
BST shares last closed at a price of TT$27.93 on the local exchange. We have forecasted an EPS of TT$1.65 (BBD0.51) for fiscal 2008, which at the current price translates into a price to earnings multiple of 16.9 times, which is high for the Group. Thus, we recommend a SELL on this share.


Nancy Chen
WISE Equity Research Team