First Rock records massive 800% increase in profits to shareholders
First Rock Capital Holdings has led the profit growth by Jamaican-listed companies this year, chalking up a massive 800 per cent increase in net profit attributable to shareholders for the nine-month period ended September 30.
Net profit attributable to ordinary shareholders for the nine-month period amounted to US$2,403,494 compared to the modest US$280,219 posted for the same period in 2019. This increase of over 800 per cent represents the biggest jump in profit by any listed company so far this year and represents a tremendous feat given COVID-19, which has been blamed for the poor out-turn by many listed and private companies.
The last quarter was particularly good for First Rock, which is in the business of real estate development and private equity. Net profit attributable to ordinary shareholders for the quarter ended September 30, 2020 totalled US$ 1,144,623, which represents a considerable increase when compared to the US$287,149 recorded for the quarter ended September 30, 2019.
Speaking with The Caribbean Business Report, First Rock co-founder and Chief Executive Officer (CEO), Ryan Reid says the phenomenal growth in profit is the manifestation of the company’s effective deployment of capital. He adds “in our consistent thrust to maximise shareholder value, we have been prudently building our or balance sheet, which is being executed through the effective deployment of capital.”
This effective deployment, Reid explains, has allowed the company to deliver commendable results. “We are building a solid business,” the First Rock co-founder and CEO declared.
ASSET GROWTH
During the period First Rock for the first time surpassed $5 billion in assets to round off its best ever quarter, since commencing operations on March 15, 2019 and being a listed company on the Jamaica Stock Exchange in February this year.
At the end of the quarter First Rock assets grew to US$35.16 million or over J$5 billion with shareholders’ equity of US$29.76 million amounting to J$4.31 billion. Liabilities were holding firm at US$5.30 million or J$768.5 million as at September 30, 2020.
In his interim unaudited report to shareholders for the just ended September quarter, Chairman Norman Reid, who is the father of the CEO, boasted of the financial performance of First Rock noting that “the company has been aggressively building out its balance sheet while ensuring that its deployment of capital is yielding commendable returns on equity.” According to the elder Reid, “through the prudent and concerted management of our affairs, we were able to post our best quarterly performance.”
POSITIVE OUTLOOK FOR THE FUTURE
Regarding the company’s outlook for the rest of the year and into 2021, the First Rock chairman remarked, “as we continue to conduct our affairs in the various markets, we remain cautiously aggressive within the current environment. As we go into our final quarter for the financial year, our strategy and efforts will remain the same.”
First Rock Capital Holdings Limited is an international business company duly incorporated under the laws of Saint Lucia on October 4, 2017. The registered office of the company is located at Bourbon House, Bourbon Street, Castries, Saint Lucia.
Its main operations are located at Suite #6, 14 Canberra Crescent, Kingston 6. The main activities of the company are holding investments and controlling the operations of its subsidiaries. The company’s core focus is real estate and private equity investments.