Mayberry Investments Ltd (MIL) is crediting a return a return of investor confidence in the Jamaican equities for allowing the company to increase its net profit and total comprehensive income in 2021, when compared to the corresponding period last year.

Mayberry, coming out of its annual general meeting on Thursday (October 28), said it was successfully recovering from the economic fallout caused by the COVID-19 pandemic, which had resulted in significant downturn in revenues for 2020.

In comparison to 2020, the company reported a 127 per cent increase in year-to-date net profit, 123 per cent increase in year-to-date comprehensive income, 32 per cent increase in total assets and 33 per cent increase in total equity. As a result, the company recorded a turnaround in total comprehensive income of $1.2 billion for the nine-month period,  September 30, 2021 compared to a total comprehensive loss of $5.1 billion for the same period in 2020.

PERFORMANCE TEMPERED

However, the company’s performance was tempered by reduced trading gains, lower fees and commissions and reduced dividend payouts. MIL’s net book value per share fell from $11.59 to $9.66, a 25 per cent decline.

Despite these challenges, Mayberry Investments Chief Executive Officer Gary Peart said the company would overcome these hurdles.

Mayberry is set to continue recording major improvements as the country gradually recovers from the dismal economic impact caused by the pandemic.

“I think the authorities have a better understanding of the COVID challenge and, as well, my fellow Jamaicans are in a much better place in terms of managing COVID. So, I think business will be coming back a lot better for 2022. We’re properly structured and positioned for that,” Peart said.

The Mayberry CEO also advised interested investors to get onboard in order to take advantage of the company’s underpriced stock value which trades below its net book value at $6.

“Mayberry should have been trading at around $80 in 2019 and, as you see, it never passed $19. And even the turnaround year-to-date, where we have generated $1.8 billion in comprehensive income, that corresponds to a price of around $1.40, applying that to 20 times P/E that would suggest $30 per share. So, at the very least, the stock should be trading at around $11. The long and short of it is that $6 is a very good buy,” said Peart.

Mayberry Investments Limited has paid out more than $3 billion in dividends since its inception in 2005. The company will be increasing its dividends from $0.125 per share which it paid out in July 2020 to $0.32 per share set for December 30, 2021.