BCB Holdings Ltd Results for Year Ended 31 March 2013 and Disposal (5168M)
August 27 2013 - 4:47AM
UK Regulatory
TIDMBCB
RNS Number : 5168M
BCB Holdings Ltd
27 August 2013
BCB HOLDINGS LIMITED ANNOUNCES RESULTS FOR YEAR ENDED MARCH 31,
2013 AND THE DISPOSAL OF CAYE CHAPEL RESORT ISLAND IN BELIZE
Belize City, Belize, August 27, 2013 -- BCB Holdings Limited
(London - AIM: BCB; Bermuda - BBHL; Trinidad and Tobago Stock
Exchange - BCBTT) (the "Company") reported a net loss of $21.6m for
the year ended March 31, 2013 (2012 - net loss $15.1m). Net loss
for the year ended March 31, 2013 included a net non-recurring loss
of $12.7m relating to certain legal actions the Company has been
pursuing. Loss from continuing operations per share for the year
(before non-recurring losses of $0.13 per share) amounted of $0.09
(2012 - loss $0.15).
For the quarter ended March 31, 2013 the Company reported a net
loss of $26.3m (2012 - net loss $5.8m). Loss from per share for the
quarter amounted to $0.26 (2012 - loss $0.06) Net loss for the
quarter ended March 31, 3013 included a net non-recurring losses of
$12.7m (equivalent to $0.13 per share).
The Company's balance sheet closed the year with shareholders'
equity of $86.0m at March 31, 2013 compared with $108.0m last
year.
The net loss of the Company in the current year includes a
non-recurring loss of $12.7m that relates to historic matters
concerning arrangements between the Government of Belize ("GOB")
and the Company. In July 2013, the Caribbean Court of Justice
refused to enforce an award which was previously given to the
Company by the London Court of International Arbitration in respect
of damages and costs for breaches of contractual warranties by the
GOB. The Company has fully provided against the award receivable of
$22.2m and is reviewing its options for further recovery actions.
This was partially offset by income of $9.5m as a result of a
favorable outcome to the pursuit of a second award given to the
Company by the London Court of International Arbitration in respect
of a loan note due by the GOB to the Company.
Before the effect of the non-recurring loss of $12.7m, the
Financial Services Division moved from an operating loss of $9.8m
for the year ended March 31, 2012 to an operating loss of $4.6m for
the year ended March 31, 2013. The underlying improvement of $5.2m
is principally due to lower interest expense of $6.5m offset by an
increase in non-interest expenses of $0.7m, principally due to
increased legal fees. Provisions for loan losses amounted to $19.9m
(2012 - $19.6m) on a loan portfolio of $350.7m at March 31, 2013.
The performance of the Company continues to reflect the negative
effect of accrued interest not being recognized on the
non-performing loan portfolio that amounted to $127.0m at March 31,
2013, down from $152.7m a year earlier. The Company continues to
manage this non-performing loan portfolio by controlled
liquidations. In due course the Company will redeploy the funds in
new lending when suitable opportunities arise.
The Company also announces it has entered into a conditional
agreement to sell Caye Chapel, a resort island in Belize, for
$30.0m to Yumi Limited, a British Virgin Islands company funded by
private equity. The terms of the transaction provide for an initial
non-refundable payment prior a due diligence period from September
1, 2013 to November 14, 2013 and a final closing on December 20,
2013. The disposal valuation is in line with book value and funds
received on closing will strengthen the liquidity of the financial
services businesses and provide resources for suitable investment
opportunities as they arise. The Company will provide an update on
the proposed transaction in due course
Background Information
BCB Holdings Limited (BCBHL) is a parent holding company with no
independent business operations or assets other than its
investments in its subsidiaries, intercompany balances and holdings
of cash and cash equivalents. BCBHL's businesses are conducted
through its subsidiaries. BCBHL's subsidiary financial holding
company, BB International Limited, owns the investments in The
Belize Bank Limited (BBL), which is incorporated and based in
Belize and focuses on the provision of financial services and
lending to domestic clients, and Belize Bank International Limited,
which is incorporated and based in Belize and focuses on the
provision of financial services and lending to international
clients. BCBHL also owns an international corporate services
business based in Belize. Within Belize, BBL is the largest, full
service commercial and retail banking operation with a head office
in Belize City and thirteen branches extended into each of the six
districts of Belize. The principal operations of BBL are commercial
lending, consumer lending, deposit taking and related banking
activities.
Financial Information
The financial information included in this report as at March
31, 2012 and March 31, 2013 and for the year ended March 31, 2013
reflects the performance of the Company's continuing operations.
The comparative income statement for the year ended March 31, 2012,
reflects the impact of the demerger by the Company of Waterloo
Investment Holdings Limited, which became effective on October 26,
2011. In accordance with accounting standards, the income statement
for the twelve months ended March 31, 2012 has been presented to
separately disclose the results from continuing and discontinued
operations.
For further information contact:
BCB Holdings
UK +44 (0)20 7248 6700
Belize +501 227 7178
Note: This and other press releases are available at the
Company's web site: http://www.bcbholdings.com
BCB Holdings Limited
Financial Information
Summarized Consolidated Statements of Income (unaudited)
US dollars in millions except per share data
3 months 3 months ended 12 months 12 months
ended ended ended
March 31, March 31, March 31, March 31,
2013 2012 2013 2012
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Interest
income 10.0 9.8 39.5 40.8
Interest expense (3.1) (4.1) (13.7) (20.2)
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Net interest income 6.9 5.7 25.8 20.6
Provision for loan losses (16.7) (7.7) (19.9) (19.6)
Net non-interest expense (2.4) (3.0) (10.5) (10.8)
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Operating loss before non-recurring
loss (12.2) (5.0) (4.6) (9.8)
Non-recurring net loss (12.7) -- (12.7) --
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Operating loss - Financial
Services (24.9) (5.0) (17.3) (9.8)
Corporate expenses (1.4) (0.8) (4.3) (4.7)
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Net loss - continuing operations (26.3) (5.8) (21.6) (14.5)
Net loss - discontinued operations -- -- -- (0.6)
Net loss (26.3) (5.8) (21.6) (15.1)
-------------------------------------------------------------------------- ----------- --------------- ----------- -----------
Loss per share: basic and
diluted
Net loss - continuing operations $(0.26) $(0.06) $(0.22) $(0.14)
Net loss - discontinued operations $(0.00) $(0.00) $(0.00) $(0.01)
Net loss $(0.26) $(0.06) $(0.22) $(0.15)
Number of shares - (basic
& diluted) 100.0m 100.0m 100.0m 100.0m
Consolidated Statements of Changes in Shareholders' Equity
Share capital Additional Treasury Retained Total
$m paid in shares earnings $m
capital $m $m
$m
---------------------- -------------- ----------- --------- ---------- --------
At March 31, 2011 0.6 52.4 (21.6) 389.9 421.3
Net loss -- -- -- (15.1) (15.1)
Demerger of Waterloo
Investments -- 0.4 -- (298.6) (298.2)
---------------------- -------------- ----------- --------- ---------- --------
At March 31, 2012 0.6 52.8 (21.6) 76.2 108.0
Purchase of Treasury
Shares -- -- (0.1) -- (0.1)
Other movements -- -- -- (0.3) (0.3)
Net loss -- -- -- (21.6) (21.6)
---------------------- -------------- ----------- --------- ---------- --------
At March 31, 2013 0.6 52.8 (21.7) 54.3 86.0
---------------------- -------------- ----------- --------- ---------- --------
BCB Holdings Limited
Financial Information
Summarized Consolidated Balance Sheet (unaudited)
March 31 March 31
2013 2012
$m $m
Financial Services
Cash, cash equivalents and due from banks 125.2 146.7
Interest-bearing deposits with correspondent
banks 17.6 31.0
Investment securities 81.8 10.7
Government of Belize securities 31.0 18.5
Loans - net 350.7 375.7
Property, plant and equipment - net 15.8 15.1
Government of Belize receivable 20.9 31.3
Other assets 37.9 36.4
---------------------------------------------- --------- ---------
Total Financial Services assets 680.9 665.4
Corporate
Cash and cash equivalents 7.3 8.5
Other current assets 2.4 1.3
Total assets 690.6 675.2
---------------------------------------------- --------- ---------
Liabilities and shareholders' equity
Financial Services
Deposits 580.9 545.6
Interest payable 5.1 6.5
Other liabilities 10.9 8.0
---------------------------------------------- --------- ---------
Total Financial Services liabilities 596.9 560.1
Corporate
Current liabilities 6.5 5.9
Long-term liabilities 1.2 1.2
---------------------------------------------- --------- ---------
Total liabilities 604.6 567.2
Total shareholders' equity 86.0 108.0
---------------------------------------------- --------- ---------
Total liabilities and shareholders' equity 690.6 675.2
---------------------------------------------- --------- ---------
BCB Holdings Limited
Financial Information
Summarized Consolidated Statement of Cash Flows (unaudited)
12 Months ended March 31 2013 2012
$m $m
Cash flows from operating activities
Net loss from continuing operations (21.6) (14.5)
Adjustments to reconcile net loss to net
cash
provided by operating activities:
Depreciation 1.7 1.4
Provision for loan losses 19.9 19.6
Decrease in interest payable (1.4) (2.5)
Decrease in Government Receivable 10.4 0.9
Changes in assets and liabilities - net 0.9 (1.9)
Net cash provided by operating activities
- continuing 9.9 3.0
Net cash utilized by operating activities
- discontinued -- (3.4)
------------------------------------------------- ------- -------
Net cash provided (utilized) by operating
activities 9.9 (0.4)
------------------------------------------------- ------- -------
Cash flows from investing activities
Purchase of property plant and equipment
(net of disposals) (2.4) (3.7)
Decrease (increase)in interest-bearing deposits 13.4 (3.8)
(Increase) decrease in Government securities (12.5) 10.4
Increase in other securities (71.1) (2.2)
Decrease (increase) in loans to customers 5.1 (5.0)
Net cash utilized by investing activities (67.5) (4.3)
------------------------------------------------- ------- -------
Cash flows from financing activities
Increase in deposits 35.3 30.3
Purchase of Treasury Shares (0.1) --
Other movements (0.3) --
Decrease in long term debt -- (0.6)
Net cash provided by financing activities 34.9 29.7
------------------------------------------------- ------- -------
Net change in cash, cash equivalents and
due from banks (22.7) 25.0
Cash, cash equivalents and due from banks
at beginning of period 155.2 130.2
Cash, cash equivalents and due from banks
at end of period 132.5 155.2
------------------------------------------------- ------- -------
-END-
This information is provided by RNS
The company news service from the London Stock Exchange
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