Lasco Financial Services experienced a terrible June first quarter with net profits going down 28 per cent and income sliding downwards.

Net profit closed the period J$55.81 million, down from the J$74.98 million during the corresponding quarter in 2021. Pre-tax profit dropped 23 per cent to J$85.18 million, down from $110.80 million booked in the first quarter of 2021.

Taxes for the period amounted to J$29.37 million, compared to J$35.82 million last year. Trading income came out at J$539.99 million, which is a decline of four per cent when compared to J$561.71 million posted in 2021.

Other income decreased by 16 per cent to J$24.50 million versus J$29.31 million in 2021. This resulted in an overall income of J$564.49 million, a contraction of four per cent when compared to J$591.02 million for the corresponding period in 2021.

Expenses rose slightly

Expenses were kept tight with a marginal upward movement. Operating expenses amounted to J$452.54 million, compared to J$432.48 million booked in the year prior. Of this amount, administrative costs closed at J$268.03 million (2021: J$263.40 million), while selling and promotional costs amounted to J$184.50 million (2021: J$169.09 million).

Consequently, due to the decrease in total income, profit from operations decreased by 29 per cent to total J$111.95 million relative to the J$158.53 million booked last year. On the positive side, finance costs decreased to J$26.77 million (2021: J$47.74 million).

As at June 30, 2022, Lasco Financial’s total assets closed the period at J$4.31 billion, which is nine per cent more than its value of J$3.96 billion a year ago. This increase was largely due to ‘Cash and Bank Balances’ and ‘Short term Deposits’ which closed at J$855.96 million (2021: J$770.74 million) and J$765.52 million (2021: J$393.68 million), respectively.

However, these were tempered by a decline in ‘Loans and other receivables’ by J$82.77 million to J$1.43 billion (2021: J$1.51 billion). Shareholders’ equity attributable to stockholders amounted to J$2.02 billion relative to J$1.78 billion booked in 2021.

This translates to a book value per share of J$1.58 (2021: J$1.39).