Bermuda First Investment Ltd’s Financial Results

September 22, 2016

In a filing with the Bermuda Stock Exchange [BSX], Bermuda First Investment Company Limited announced their financial results for the year ending June 30, 2016, with Chairman  J. Michael Collier saying they “have seen an improvement in both the share prices and the balance sheet positions of our major investments over the last 12 months.”

The filing stated:

Bermuda First Investment Company Limited, a BSX listed investment holding company which owns a number of significant investments in BSX Bermuda listed companies, announces its results for the year ended June 30, 2016.

Highlights:

  •  Annual revenue of $4.1 million;
  •  Net profit of $3.7 million [including unrealized profit of $1.5 million]; and
  • Market value of investments as at June 30, 2016 of approximately $25.2 million.

Commenting on the results, J. Michael Collier, Chairman of BFIC said, “We have seen an improvement in both the share prices and the balance sheet positions of our major investments over the last 12 months.

“As a result of both the KeyTech transaction with ATN and improved operating results at Ascendant there are indications that prospects for our investments are improving.

“With Bermuda hosting the America’s Cup in 2017 we believe that our investments are well placed to benefit from the investment in improving Bermuda’s infrastructure and the improvement in the overall Bermuda economy.”

Financial summary

For the year ended June 30, 2016, the Company reported revenue of $4.1 million and an unrealised profit on the Company’s investments of approximately $3.7 million.

For the quarter ended June 30, 2016, the Company reported revenue of $3.6 million and an unrealised loss on its investments of approximately $1.9 million, [relating to the movement in the value of the Company’s investments between March 31, 2016 and June 30, 2016]. Total expenses were $0.4 million and the Company’s undiluted earnings per share for the quarter was $0.69.

As at June 30, 2016, the Company’s investments had a total value of $25.2 million. During the quarter the Company repaid $1.6 million of debt and accrued interest. As at June 30, 2016, the Company had net debt of $4.3 million and unsecured long term seven-year loan notes that it issued to its founder shareholders in October 2012 of $18.8 million.

KeyTech Limited

KeyTech is due to release its results for the year ended March 31, 2016 shortly. We look forward to hearing about the company’s strategy going forward and its investment plans in both Bermuda and Cayman.

Ascendant Group Limited

Ascendant’s results for the six months ended 30 June 2016 will be released before the end of September. They should show a continued financial improvement with continued cost control and improved sales due to warmer weather and the continued low oil price.

On June 30, 2016, Ascendant filed its integrated resource plan [“IRP”]. This sets out the energy plan for Bermuda’s future. In the plan, Ascendant evaluated 7 different scenarios with a full conversion to LNG, alongside energy conservation and renewables being the favoured option. There will be a period of consultation amongst all of Bermuda’s stakeholders and then ultimately it will be a policy decision for Bermuda to decide. Ascendant is still waiting for the new Regulatory Authority to be initiated and their role will be key in the future strategy.

Ascendant has recently appointed Sean Durfy as its new Chief Executive Officer. He comes with a strong energy background and was previously CEO of Westjet. We anticipate he will have a significant role in the implementation of a clear strategy for the company.

Argus Group Holdings Limited

On June 27, 2016 Argus announced net earnings of $7.3 million for the year ended March 31, 2016. Included within the net earnings figure were unrealised investment losses of $8.0 million, which were driven by short-term volatility in global investment markets. Net earnings from underlying earnings were of $15.3 million before unrealised investment losses. Shareholders’ equity increased to $122.6 million and an interim dividend of nine cents per share was declared.

Net Benefits and Claims increased by $9.0 million to $109.6 million primarily due to health claims returning to a more normal level after the unusually low claims incurred in 2015. The financial results include investment income of $1.5 million compared with $14.8 million in the prior year. Argus has recently launched a share buyback programme given the share price is trading at a significant discount to book value.

Other investments

The Company’s other investments include small holdings in BF&M Limited, Bermuda Aviation Services Limited and Bermuda Press Holdings which are valued at approximately $0.1 million.

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