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Presented at the Caribbean Growth Forum



Debt or Equity?
Debt

◦ Fixed repayments; Clock starts at day 1; Whether
Profit or Loss
◦ Cost of funding – Prime rate 18+%?
◦ Collateral required
◦ Tax shield



Equity Capital

◦ Expected return yes, fixed no; share losses if any
◦ Cost of funding – effectively zero over the long term
◦ No collateral requirement
“To provide a fair, efficient and
transparent stock market”




There are over 80,000 companies registered in
Jamaica
Over 110 Company Categories, few examples
Transport
Services

Agriculture
Automobile

Business

Restaurant

Construction

Real Estate

Medical

Entertainment

Financial Services

Manufacturing

Hotel

General
Merchandise

“To provide a fair, efficient and
transparent stock market”
Company Category
Accountants
Advertising
Agriculture
Air Conditioning
Air Travel
Animals
Appliances
Architects
Art
Asphalt
Audio
Automobile
Bathroom
Batteries
Beauty
Bedding
Bee Keeping Services
Beverage
Boat
Book
Bottlers
Boutiques
Bridal
Broadcast Services
Building
Business
Charity

Number Company Category
102 Chemicals
379 Church
2132 Cleaners
13 Clothing / Fabric
28 Communication
33 Computers
62 Construction
158 Consultants
156 Data Processing
1 Electrical
55 Engineering
3268 Entertainment
14 Environmental
9 Farming
345 Financial Services
22 Fire
9 Fish
35 Florists
3 Food
11 Fruit
63 Funeral
34 Furniture
Gardening &
27 Landscaping
19 Gas
150 General Equipment
7336 General Merchandise
1856 Glass
Undetermined

Number Company Category
151 Grocers
1015 Hardware
223 Health
725 Home
578 Hotel
692 Industrial Equipment
3893 Insurance
321 Jewellers
133 Legal and Law
1730 Liquor
104 Locksmiths
2673 Machine
142 Manufacturing
154 Marine
2332 Marketing
2 Medical
145 Metal
306 Mining
330 Motorcycles / Bicycles
23 Music
24 Music Industry
450 Nurse
Office Furniture &
17 Equipment
40 Oils
10 Other Services
9516 Packaging
1 Paper
5327 Pesticide Services

Number Company Category
23 Photographers
142 Photographic
17 Printing
6 Publishers
1421 Real Estate
Restaurant Equipment &
279 Supplies
379 Roofing
16 Sanitation
11 School
100 Security
176 Service Station
132 Shipping
3454 Sports
3 Stationary /Office Supplies
181 Storage
1179 Stores
148 Sugar Maufacturers
225 Surveyors
34 Taxicabs
73 Telecomunications
12 Television
45 Tool
432 Tourism
9 Transport Services
567 Tyre
19 Water
8 Window
97

Number
21
213
22
283
5369
589
12
41
434
981
262
1174
146
497
49
786
3
10
22
159
32
1
110
2542
14
79
15







Become a publicly traded company

Regulated under the Securities Act, JSE JM
Rules

Public Company - anyone may buy shares

Public interest in profits, plans, mgmt, etc.
Information disclosure requirements:
◦ Quarterly accounts; annual audits;

◦ Notice of mgmt changes, large investments, general
meetings
◦ Dividends among other requirements
“To provide a fair, efficient and
transparent stock market”
1.
2.
3.
4.

5.
6.

Effective avenue for raising money
Lower cost of funds than loans, allow
better use of leverage
Higher profile and market visibility
Wealth creation and distribution
mechanism for shareholders: estate
planning
Constant pricing mechanism for the
company
No taxes on share transfer
“To provide a fair, efficient and
transparent stock market”





Mix of existing small & medium sized with some
new companies (start-ups)
None related to companies that are already listed
Capital through Participating shares of between
J$50M(US580k) and $500M(U$5.8M) each, raised
largely on strength of prospectus via IPO



JSE-approved Mentor for each Board of Directors



Audit & Compensation Committees

“To provide a fair, efficient and
transparent stock market”
1.
2.
3.
4.
5.
6.
7.

Only have to give up 20% stake (minimum) to 24
other persons
Better management/utilization of leverage
Reduced (fixed) cost – loan interest
All the benefits of regular listing, plus
Reduced (50%) JSE listing fees
Tax holiday
Reduction in other costs for listing




8.

Standard prospectus and other documents
No newspaper publishing requirement
Negotiable lead-broker fees

Governance standards are good for business
“To provide a fair, efficient and
transparent stock market”
Public & Private Sector: Ministry of Finance/JSE

Stimulation of economy through SMEs, using the
capital market as growth catalyst.
 Enhanced SME profitability & long-term viability
 Improved corporate governance
 Increased employment
 Larger pool of compliant taxpayers
 Gains in payroll taxes, GCT & CIT collections
 Wider pool of investors/wealth creation &
sharing
 Sustained economic growth





100+ companies canvassed since inception in 2009
MOU and joint promotions with JamPro, PSOJ,
brokers
13 listings to date

 All compliant with JSE rules

 All show financial and other improvements
 Paying additional taxes


10+ companies ready for listing



Many getting ready to be listed
Average increase in Pre-Tax Profit of 371% over the previous year.
$
1,400,000,000

Pre-Tax Profit

1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0

Post Listing Pre-tax Profit
Pre Listing Pre-tax Profit
Average revenue increase of 200% over the previous financial year
Junior Market Companies

Year end Revenue
Revenue First % Change in
Stated in Prospectus year after Listing
Revenue

AMG Packaging & Paper Company Limited

231,846,328

308,921,086

33.24%

Access Financial Services Limited

220,840,881

382,869,382

73.37%

Blue Power Group Limited

647,744,268

696,455,723

7.52%

Cargo Handlers Limited

173,696,852

165,208,268

-4.89%

Dolphin Cove Limited - Operating Revenue

688,827,708

732,633,099

6.36%

2,203,074,000

3,626,395,000

64.61%

Honey Bun (1982) Limited

448,561,798

560,847,134

25.03%

Jamaican Teas Limited

320,131,121

448,561,798

40.12%

5,842,917,000

6,756,555,000

15.64%

51,627,864

219,994,000

326.11%

172,020,000

2,969,611,000

1626.32%

General Accident Insurance Company Limited

Lasco Distributors Limited
Lasco Financial Services Limited
Lasco Manufacturing Limited
GCT
Company
AFS

Post listing

PAYE
%
change Post listing

Pre-listing

Pre-listing

%
change

6,787,207

5,442,376

25%

16,282,369

15,865,726

3%

16,518,868

9,587,552

72%

13,973,822

9,245,039

51%

0

0

0

15,338,179

13,558,387

13%

DCOVE

62,368,682

34,106,917

83%

58,845,536

47,915,148

23%

JAMT

84,256,260

52,122,877

62%

15,763,748

9,128,072

73%

LASD

8,469,385

2,456,205

245% 166,818,202 141,636,903

18%

LASF

22,100,000

9,900,000

123%

2,700,000

1,800,000

50%

LASM

8,232,783

5,629,320

46%

34,053,634

18,147,641

88%

75% 323,775,490 257,296,916

26%

BPOW
CHL

208,733,185 119,245,247
36
3

Lasco Manufacturing Ltd

Lasco Financial Services Ltd

Lasco Distributors Ltd

Jamaican Teas Ltd

Honey Bun (1982) Ltd

21
29
21
77
7

General Accident Insurance…

Lasco Financial
Lasco Financial
Lasco Manufacturing
Lasco Manufacturing

25
5
5
20
71
20

New Employees

Dolphin Cove Ltd

Jamaican Teas
Jamaican Teas
Lasco Distributors
Lasco Distributors

64
6

Blue Power Group Ltd

General Accident Ins
General Accident Ins
Honey Bun (1982)
Honey Bun (1982)
Limited
Limited*
Limited*

10
10
10
100
100
100

Acces Financial Services Ltd

Blue Power
Blue Power
Dolphin Cove
Dolphin Cove

50
40
30
20
10
0

AMG Packaging & Paper Co…

Junior Market companies have employed over 230 full time workers
and 100 temporary workers since listing.
New
New
New
Junior Market
Employees
Employees
Junior Market
Employees
New Employees Since Listing
Companies
Since Listing
Since Listing
Companies
Since Listing
100
Access Financial
Access Financial
90
Access Financial Services
Services
52
56
80
Services
52
70
AMG Packaging & Paper
77
60
AMG Packaging & Paper
7
Financial Services







Oct 2009: Listed on the JSE Junior Stock Market
December 2009: Opened 3 new branches - Santa Cruz, Linstead & Portmore
August 2010: Opened 2 new branches - Old Harbour & Brown's Town
Feb 2012: Opened new branch in Downtown, Kingston. Total branches to 14.
Has employed over 56 persons since listing on the Junior Market

AMG Packaging and Paper Company






July 2011: Listed on the JSE Junior Stock Market
Purchased new property adjacent to the company’s factory at a cost of J$58M
the property will enable the company to expand production facility and
house its inventory indoors
Has hired 7 employees since listing
Blue Power Group






April 2010: Listed on the JSE Junior Stock Market
Expanded building complex to 8,500 square feet, new machines and mills.
Increased manufacturing capacity by 50 per cent, launched new soaps
Has employed 10 persons since listing

Caribbean Producers






July 2011: Listed on the JSE Junior Stock Market
Opened its meet processing facility in February 2012. The construction of a
10,000 sq ft warehouse in Montego Freeport is almost completed.
The CPJ Market facility in Kingston is expected to open in October 2012. A new
distribution centre is set to open in St Lucia in the latter part of 2012.

Has hired 25 workers since listing
Dolphin Cove Limited

 Dec 2010: Listed on the JSE Junior Market





2011: Opened a second marine park in Lucea, Hanover – Dolphin Cove Negril
2011: Purchased additional 3 acres to the 7-acre Ocho Rios marine park
facility to widen its attraction offerings. Over J$155M on capital expenditure.
Has employed more than 100 persons since listing on the Junior Market

Honey Bun (1982) Limited

 June 2011: Listed on the JSE Junior Market





Purchased new equipment & vehicles – improved manufacturing and distribution.
efficiencies
Expanded product line and marketing
Has employed 10 permanent persons and 15 temporary workers since listing
Jamaican Teas Limited













July 2010: Listed on the JSE Junior Market
Nov 2010: Acquired 50% interest in Bay City Foods Limited.
June 2011: Entered water bottling business
2011: Doubled warehouse, factory and admin office space
Dec 2011: Purchased a supermarket in Kingston
Feb 2012: Purchased assets of former Hilo supermarket in Savanna-La-Mar
Now building 2,000 sq ft warehouse on Port Royal street in Kingston to expand
productive capacity
Purchase property in Kingston for the construction of 18 super studio apartments
in 2012. Purchased additional Packaging and grinding machines.
Has employed 71 persons employed since listing on the Junior Market

Lasco Distributors Limited






Oct 2010: Listed on the Junior Market
Expanded its logistics business and technology platform
In the process of expanding product lines as well as plant and machinery
29 employees hired since listing
Lasco Manufacturing Limited

Oct 2010: Listed on JSE Junior Market
Building modern manufacturing facility costing J$2.1B in White Marl, adding
100,000 sq ft. to:
•
Significantly reduce imports and make use of more local resources
•
Enable launch of new products, increases exports and double sales by 2014
Has employed 6 persons permanently since listing
Factory expansion projected to provide 250 new jobs in the first phase alone







Lasco Financial Services Limited









Oct 2010: Listed on JSE Junior Market
Expanded product range, e.g. education loans
Acquired Supreme Ventures Money Gram business for J$38M
Quadrupled payday loans since listing
Incorporated Lasco Financial Services (Barbados) Ltd and has signed an
international Transfer Agreement with MoneyGram International. Trading is
expected by the end of the calendar year 2012.
Has hired 7 persons since listing
Cargo Handlers Limited



Dec 2010: Listed on JSE Junior Market
Still working on major projects outlined in the companies prospectus. –
purchase of shore crane, 20 tonne heavy forklift and the lease of property at
the Montego Bay port, alongside Berth 2.

General Accident Insurance Company Limited





Sep 2011: Listed on JSE Junior Market
Embarked on marketing campaign
Employed 4 new persons since listing (one of whom

C2W Music Limited

‣ May 2012: Listed on JSE Junior Market

is a marketing manager).
Access Financial Services Limited

Dividend Policy: A payment of an annual dividend of not less than 20% of the annual
after tax profits where such profits are available for distribution, subject to the
Company’s need for reinvestment of some or all of its profits from time to time in order
to finance its growth and development.

AMG Packaging & Paper Company
Limited

Dividend Policy: A payment of an annual dividend of not less than 20% of net profits
available for distribution, subject to the need for reinvestment in the Company from time
to time.

Blue Power Group Limited

Dividend Policy: A payment of an annual dividend of between 10% and 20% of the
annual after tax profits where such profits are available for distribution, subject to the
Company’s need for reinvestment of some or all of its profits from time to time in order
to finance its growth and development.

C2W Music Limited

Dividend Policy: A payment of an annual dividend of not less than 25% of the annual
after tax profits available for distribution, subject to the need for reinvestment in the
Company from time to time.

Cargo Handlers Limited

Dividend Policy: A payment of an annual dividend of not less than 25% of the annual
after tax profits where such profits are available for distribution, subject to the
Company's need for reinvestment of some or all of its profits from time to time in order
to finance its growth and development.

Caribbean Producers Jamaica Limited

Dividend Policy: A payment of an annual dividend in US currency, of not less than 25%
of net profits available for distribution, subject to the need for reinvestment in the
Company from time to time.
Dolphin Cove Limited

Dividend Policy: A payment of an annual dividend equivalent to not less than 25% of
net profits available for distribution, subject to the need for reinvestment in the Group
from time to time.

General Accident Insurance Company
Limited

Dividend Policy: A payment of an annual dividend of not less than 25% of net profits
available for distribution, subject to regulatory approval by the Insurance Division of the
FSC and the need to maintain sufficient capital for both regulatory purposes and growth.

Honey Bun (1982) Limited

Jamaican Teas Limited

LASCO Distributors Limited
LASCO Financial Services Limited
LASCO Manufacturing Limited

Dividend Policy: A payment of an annual dividend of not less than

20%

of net profits

available for distribution, subject to the need for reinvestment in the Company from time
to time.
Dividend Policy: A payment of an annual dividend of not less than

15%

of the annual

after tax profits where such profits are available for distribution, subject to the
Company's need for reinvestment of some or all of its profits from time to time in order
to finance its growth and development.

Dividend Policy: A payment of an annual dividend of not less than

15%

of the annual

after tax profits where such profits are available for distribution, subject to the
Company's need for reinvestment of some or all of its profits from time to time in order
to finance its growth and development so that the Company sustains and improves on
its ability to compete in the markets in which it operates.
Promised Objectives
Long term viability of SMEs

Delivery
The companies listed have recorded improvements in
revenues and pre-tax profits
All Invitations (Offers) to purchase shares were fully
subscribed, and most were oversubscribed

Allow for a wider pool of investors & investment
products

Since the creation of the Junior Market, over 5,000 new
investors have registered.

Improved Compliance & Corporate Governance

All Junior Market companies are compliant - Financials
and material disclosures are published timely. The
companies practice corporate governance.

Larger pool and greater tax compliance

Increased payment in GCT and PAYE

Increase in employment through expansion

Overall 330 full-time and temporary workers have been
employed by companies listed on the Junior market

Net Gain in taxation after the first 5 years
The companies listed on the Junior Market have used the
funds raised to position themselves to be far more
JSE providing an indirect service to tax authorities competitive and to achieve growth


Assumptions:
◦
◦
◦
◦
◦





No other JM companies listed
Other JM Companies are similar to those reporting
Same rate of growth of revenues & profits
Current tax rates applicable throughout
Capital allowances not factored in

Additional GCT and payroll taxes will outstrip
CIT waived within 5 years
(1/2 rate) CIT collections in years 6 – 9 will
exceed all taxes foregone in years 1 – 5


Listing on JJSE has added and will continue to add value for
shareholders, the market and the economy



Efficient, low-cost method of raising capital



Reduced costs and greater ease in listing



Public/Private Sector Partnership can work




Is the avenue for economic growth through SMEs
Market is driven by opportunities and
confidence.

Thank you for your time & attention

“To provide a fair, efficient and
transparent stock market”

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The JSE Junior Market SME Funding Through The Stock Exchange :: Marlene Street

  • 1. Presented at the Caribbean Growth Forum
  • 2.   Debt or Equity? Debt ◦ Fixed repayments; Clock starts at day 1; Whether Profit or Loss ◦ Cost of funding – Prime rate 18+%? ◦ Collateral required ◦ Tax shield  Equity Capital ◦ Expected return yes, fixed no; share losses if any ◦ Cost of funding – effectively zero over the long term ◦ No collateral requirement “To provide a fair, efficient and transparent stock market”
  • 3.   There are over 80,000 companies registered in Jamaica Over 110 Company Categories, few examples Transport Services Agriculture Automobile Business Restaurant Construction Real Estate Medical Entertainment Financial Services Manufacturing Hotel General Merchandise “To provide a fair, efficient and transparent stock market”
  • 4. Company Category Accountants Advertising Agriculture Air Conditioning Air Travel Animals Appliances Architects Art Asphalt Audio Automobile Bathroom Batteries Beauty Bedding Bee Keeping Services Beverage Boat Book Bottlers Boutiques Bridal Broadcast Services Building Business Charity Number Company Category 102 Chemicals 379 Church 2132 Cleaners 13 Clothing / Fabric 28 Communication 33 Computers 62 Construction 158 Consultants 156 Data Processing 1 Electrical 55 Engineering 3268 Entertainment 14 Environmental 9 Farming 345 Financial Services 22 Fire 9 Fish 35 Florists 3 Food 11 Fruit 63 Funeral 34 Furniture Gardening & 27 Landscaping 19 Gas 150 General Equipment 7336 General Merchandise 1856 Glass Undetermined Number Company Category 151 Grocers 1015 Hardware 223 Health 725 Home 578 Hotel 692 Industrial Equipment 3893 Insurance 321 Jewellers 133 Legal and Law 1730 Liquor 104 Locksmiths 2673 Machine 142 Manufacturing 154 Marine 2332 Marketing 2 Medical 145 Metal 306 Mining 330 Motorcycles / Bicycles 23 Music 24 Music Industry 450 Nurse Office Furniture & 17 Equipment 40 Oils 10 Other Services 9516 Packaging 1 Paper 5327 Pesticide Services Number Company Category 23 Photographers 142 Photographic 17 Printing 6 Publishers 1421 Real Estate Restaurant Equipment & 279 Supplies 379 Roofing 16 Sanitation 11 School 100 Security 176 Service Station 132 Shipping 3454 Sports 3 Stationary /Office Supplies 181 Storage 1179 Stores 148 Sugar Maufacturers 225 Surveyors 34 Taxicabs 73 Telecomunications 12 Television 45 Tool 432 Tourism 9 Transport Services 567 Tyre 19 Water 8 Window 97 Number 21 213 22 283 5369 589 12 41 434 981 262 1174 146 497 49 786 3 10 22 159 32 1 110 2542 14 79 15
  • 5.      Become a publicly traded company Regulated under the Securities Act, JSE JM Rules Public Company - anyone may buy shares Public interest in profits, plans, mgmt, etc. Information disclosure requirements: ◦ Quarterly accounts; annual audits; ◦ Notice of mgmt changes, large investments, general meetings ◦ Dividends among other requirements “To provide a fair, efficient and transparent stock market”
  • 6. 1. 2. 3. 4. 5. 6. Effective avenue for raising money Lower cost of funds than loans, allow better use of leverage Higher profile and market visibility Wealth creation and distribution mechanism for shareholders: estate planning Constant pricing mechanism for the company No taxes on share transfer “To provide a fair, efficient and transparent stock market”
  • 7.    Mix of existing small & medium sized with some new companies (start-ups) None related to companies that are already listed Capital through Participating shares of between J$50M(US580k) and $500M(U$5.8M) each, raised largely on strength of prospectus via IPO  JSE-approved Mentor for each Board of Directors  Audit & Compensation Committees “To provide a fair, efficient and transparent stock market”
  • 8. 1. 2. 3. 4. 5. 6. 7. Only have to give up 20% stake (minimum) to 24 other persons Better management/utilization of leverage Reduced (fixed) cost – loan interest All the benefits of regular listing, plus Reduced (50%) JSE listing fees Tax holiday Reduction in other costs for listing    8. Standard prospectus and other documents No newspaper publishing requirement Negotiable lead-broker fees Governance standards are good for business “To provide a fair, efficient and transparent stock market”
  • 9. Public & Private Sector: Ministry of Finance/JSE Stimulation of economy through SMEs, using the capital market as growth catalyst.  Enhanced SME profitability & long-term viability  Improved corporate governance  Increased employment  Larger pool of compliant taxpayers  Gains in payroll taxes, GCT & CIT collections  Wider pool of investors/wealth creation & sharing  Sustained economic growth
  • 10.    100+ companies canvassed since inception in 2009 MOU and joint promotions with JamPro, PSOJ, brokers 13 listings to date  All compliant with JSE rules  All show financial and other improvements  Paying additional taxes  10+ companies ready for listing  Many getting ready to be listed
  • 11. Average increase in Pre-Tax Profit of 371% over the previous year. $ 1,400,000,000 Pre-Tax Profit 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 Post Listing Pre-tax Profit Pre Listing Pre-tax Profit
  • 12. Average revenue increase of 200% over the previous financial year Junior Market Companies Year end Revenue Revenue First % Change in Stated in Prospectus year after Listing Revenue AMG Packaging & Paper Company Limited 231,846,328 308,921,086 33.24% Access Financial Services Limited 220,840,881 382,869,382 73.37% Blue Power Group Limited 647,744,268 696,455,723 7.52% Cargo Handlers Limited 173,696,852 165,208,268 -4.89% Dolphin Cove Limited - Operating Revenue 688,827,708 732,633,099 6.36% 2,203,074,000 3,626,395,000 64.61% Honey Bun (1982) Limited 448,561,798 560,847,134 25.03% Jamaican Teas Limited 320,131,121 448,561,798 40.12% 5,842,917,000 6,756,555,000 15.64% 51,627,864 219,994,000 326.11% 172,020,000 2,969,611,000 1626.32% General Accident Insurance Company Limited Lasco Distributors Limited Lasco Financial Services Limited Lasco Manufacturing Limited
  • 13. GCT Company AFS Post listing PAYE % change Post listing Pre-listing Pre-listing % change 6,787,207 5,442,376 25% 16,282,369 15,865,726 3% 16,518,868 9,587,552 72% 13,973,822 9,245,039 51% 0 0 0 15,338,179 13,558,387 13% DCOVE 62,368,682 34,106,917 83% 58,845,536 47,915,148 23% JAMT 84,256,260 52,122,877 62% 15,763,748 9,128,072 73% LASD 8,469,385 2,456,205 245% 166,818,202 141,636,903 18% LASF 22,100,000 9,900,000 123% 2,700,000 1,800,000 50% LASM 8,232,783 5,629,320 46% 34,053,634 18,147,641 88% 75% 323,775,490 257,296,916 26% BPOW CHL 208,733,185 119,245,247
  • 14. 36 3 Lasco Manufacturing Ltd Lasco Financial Services Ltd Lasco Distributors Ltd Jamaican Teas Ltd Honey Bun (1982) Ltd 21 29 21 77 7 General Accident Insurance… Lasco Financial Lasco Financial Lasco Manufacturing Lasco Manufacturing 25 5 5 20 71 20 New Employees Dolphin Cove Ltd Jamaican Teas Jamaican Teas Lasco Distributors Lasco Distributors 64 6 Blue Power Group Ltd General Accident Ins General Accident Ins Honey Bun (1982) Honey Bun (1982) Limited Limited* Limited* 10 10 10 100 100 100 Acces Financial Services Ltd Blue Power Blue Power Dolphin Cove Dolphin Cove 50 40 30 20 10 0 AMG Packaging & Paper Co… Junior Market companies have employed over 230 full time workers and 100 temporary workers since listing. New New New Junior Market Employees Employees Junior Market Employees New Employees Since Listing Companies Since Listing Since Listing Companies Since Listing 100 Access Financial Access Financial 90 Access Financial Services Services 52 56 80 Services 52 70 AMG Packaging & Paper 77 60 AMG Packaging & Paper 7
  • 15. Financial Services      Oct 2009: Listed on the JSE Junior Stock Market December 2009: Opened 3 new branches - Santa Cruz, Linstead & Portmore August 2010: Opened 2 new branches - Old Harbour & Brown's Town Feb 2012: Opened new branch in Downtown, Kingston. Total branches to 14. Has employed over 56 persons since listing on the Junior Market AMG Packaging and Paper Company    July 2011: Listed on the JSE Junior Stock Market Purchased new property adjacent to the company’s factory at a cost of J$58M the property will enable the company to expand production facility and house its inventory indoors Has hired 7 employees since listing
  • 16. Blue Power Group     April 2010: Listed on the JSE Junior Stock Market Expanded building complex to 8,500 square feet, new machines and mills. Increased manufacturing capacity by 50 per cent, launched new soaps Has employed 10 persons since listing Caribbean Producers    July 2011: Listed on the JSE Junior Stock Market Opened its meet processing facility in February 2012. The construction of a 10,000 sq ft warehouse in Montego Freeport is almost completed. The CPJ Market facility in Kingston is expected to open in October 2012. A new distribution centre is set to open in St Lucia in the latter part of 2012.  Has hired 25 workers since listing
  • 17. Dolphin Cove Limited  Dec 2010: Listed on the JSE Junior Market    2011: Opened a second marine park in Lucea, Hanover – Dolphin Cove Negril 2011: Purchased additional 3 acres to the 7-acre Ocho Rios marine park facility to widen its attraction offerings. Over J$155M on capital expenditure. Has employed more than 100 persons since listing on the Junior Market Honey Bun (1982) Limited  June 2011: Listed on the JSE Junior Market    Purchased new equipment & vehicles – improved manufacturing and distribution. efficiencies Expanded product line and marketing Has employed 10 permanent persons and 15 temporary workers since listing
  • 18. Jamaican Teas Limited          July 2010: Listed on the JSE Junior Market Nov 2010: Acquired 50% interest in Bay City Foods Limited. June 2011: Entered water bottling business 2011: Doubled warehouse, factory and admin office space Dec 2011: Purchased a supermarket in Kingston Feb 2012: Purchased assets of former Hilo supermarket in Savanna-La-Mar Now building 2,000 sq ft warehouse on Port Royal street in Kingston to expand productive capacity Purchase property in Kingston for the construction of 18 super studio apartments in 2012. Purchased additional Packaging and grinding machines. Has employed 71 persons employed since listing on the Junior Market Lasco Distributors Limited     Oct 2010: Listed on the Junior Market Expanded its logistics business and technology platform In the process of expanding product lines as well as plant and machinery 29 employees hired since listing
  • 19. Lasco Manufacturing Limited Oct 2010: Listed on JSE Junior Market Building modern manufacturing facility costing J$2.1B in White Marl, adding 100,000 sq ft. to: • Significantly reduce imports and make use of more local resources • Enable launch of new products, increases exports and double sales by 2014 Has employed 6 persons permanently since listing Factory expansion projected to provide 250 new jobs in the first phase alone     Lasco Financial Services Limited       Oct 2010: Listed on JSE Junior Market Expanded product range, e.g. education loans Acquired Supreme Ventures Money Gram business for J$38M Quadrupled payday loans since listing Incorporated Lasco Financial Services (Barbados) Ltd and has signed an international Transfer Agreement with MoneyGram International. Trading is expected by the end of the calendar year 2012. Has hired 7 persons since listing
  • 20. Cargo Handlers Limited   Dec 2010: Listed on JSE Junior Market Still working on major projects outlined in the companies prospectus. – purchase of shore crane, 20 tonne heavy forklift and the lease of property at the Montego Bay port, alongside Berth 2. General Accident Insurance Company Limited    Sep 2011: Listed on JSE Junior Market Embarked on marketing campaign Employed 4 new persons since listing (one of whom C2W Music Limited ‣ May 2012: Listed on JSE Junior Market is a marketing manager).
  • 21. Access Financial Services Limited Dividend Policy: A payment of an annual dividend of not less than 20% of the annual after tax profits where such profits are available for distribution, subject to the Company’s need for reinvestment of some or all of its profits from time to time in order to finance its growth and development. AMG Packaging & Paper Company Limited Dividend Policy: A payment of an annual dividend of not less than 20% of net profits available for distribution, subject to the need for reinvestment in the Company from time to time. Blue Power Group Limited Dividend Policy: A payment of an annual dividend of between 10% and 20% of the annual after tax profits where such profits are available for distribution, subject to the Company’s need for reinvestment of some or all of its profits from time to time in order to finance its growth and development. C2W Music Limited Dividend Policy: A payment of an annual dividend of not less than 25% of the annual after tax profits available for distribution, subject to the need for reinvestment in the Company from time to time. Cargo Handlers Limited Dividend Policy: A payment of an annual dividend of not less than 25% of the annual after tax profits where such profits are available for distribution, subject to the Company's need for reinvestment of some or all of its profits from time to time in order to finance its growth and development. Caribbean Producers Jamaica Limited Dividend Policy: A payment of an annual dividend in US currency, of not less than 25% of net profits available for distribution, subject to the need for reinvestment in the Company from time to time.
  • 22. Dolphin Cove Limited Dividend Policy: A payment of an annual dividend equivalent to not less than 25% of net profits available for distribution, subject to the need for reinvestment in the Group from time to time. General Accident Insurance Company Limited Dividend Policy: A payment of an annual dividend of not less than 25% of net profits available for distribution, subject to regulatory approval by the Insurance Division of the FSC and the need to maintain sufficient capital for both regulatory purposes and growth. Honey Bun (1982) Limited Jamaican Teas Limited LASCO Distributors Limited LASCO Financial Services Limited LASCO Manufacturing Limited Dividend Policy: A payment of an annual dividend of not less than 20% of net profits available for distribution, subject to the need for reinvestment in the Company from time to time. Dividend Policy: A payment of an annual dividend of not less than 15% of the annual after tax profits where such profits are available for distribution, subject to the Company's need for reinvestment of some or all of its profits from time to time in order to finance its growth and development. Dividend Policy: A payment of an annual dividend of not less than 15% of the annual after tax profits where such profits are available for distribution, subject to the Company's need for reinvestment of some or all of its profits from time to time in order to finance its growth and development so that the Company sustains and improves on its ability to compete in the markets in which it operates.
  • 23. Promised Objectives Long term viability of SMEs Delivery The companies listed have recorded improvements in revenues and pre-tax profits All Invitations (Offers) to purchase shares were fully subscribed, and most were oversubscribed Allow for a wider pool of investors & investment products Since the creation of the Junior Market, over 5,000 new investors have registered. Improved Compliance & Corporate Governance All Junior Market companies are compliant - Financials and material disclosures are published timely. The companies practice corporate governance. Larger pool and greater tax compliance Increased payment in GCT and PAYE Increase in employment through expansion Overall 330 full-time and temporary workers have been employed by companies listed on the Junior market Net Gain in taxation after the first 5 years The companies listed on the Junior Market have used the funds raised to position themselves to be far more JSE providing an indirect service to tax authorities competitive and to achieve growth
  • 24.  Assumptions: ◦ ◦ ◦ ◦ ◦   No other JM companies listed Other JM Companies are similar to those reporting Same rate of growth of revenues & profits Current tax rates applicable throughout Capital allowances not factored in Additional GCT and payroll taxes will outstrip CIT waived within 5 years (1/2 rate) CIT collections in years 6 – 9 will exceed all taxes foregone in years 1 – 5
  • 25.  Listing on JJSE has added and will continue to add value for shareholders, the market and the economy  Efficient, low-cost method of raising capital  Reduced costs and greater ease in listing  Public/Private Sector Partnership can work   Is the avenue for economic growth through SMEs Market is driven by opportunities and confidence. Thank you for your time & attention “To provide a fair, efficient and transparent stock market”