Mayberry profit skyrockets with Access sale
THE sale of its stake in Access Financial Services Ltd rocketed the annual profit of Mayberry Investments Limited (MIL) sevenfold to more than $700 million.
But MIL would still have made greater profit year on year without the sale.
“We recorded a gain of $591 million from the sale of shares in associate holding [Access]. Several of our revenue lines generated better results when compared to 2013; this was due to increased trading activity,” stated Sharon Harvey-Wilson, chief operating officer in a statement prefacing the results released this week.
MIL initially invested $38.4 million in Access in September 2006 and last year sold its stake for $935 million, of which more than half became a net gain.
“At year end the group completed the sale of shares held in Access and received cash proceeds of $935 million. For the period we recorded a share of profit of $121.3 million and a net gain of $591 million on sale of the shares. This investment was profitable throughout the nine years and has contributed positively to the group’s overall performance,” stated Harvey-Wilson.
MIL reported after tax net profit of $726 million for the 12 months to December 31, 2014, up from $102 million the year earlier. The near-bank increased its net interest income and other revenues by 71 per cent to $1.5 billion in 2014 from 894 million in 2013. Its operating expenses increased 42 per cent to $970 million.
Mayberry handled two public listings in 2014 which was fewer than in previous years, but also engaged in debt financing.
“We brokered $2.1 billion in private debt financing deals for our clients during 2014. We are pleased to be the advisor for two Junior Market companies which resulted in an investment which provided diversification and increased revenues for the shareholders. They were very satisfied with our services and the ease in which it was delivered,” she stated.
The company’s total assets jumped 12 per cent to $24 billion due to increases of $1.4 billion in cash resources and $1.1 billion in reverse repurchase agreements, which resulted from the sale of assets closer to the year end.
Mayberry’s shares in Access were effectively sold to the investment firm Proven. The deal on the surface resolved a rift on the Access board between Mayberry directors and Access founder Marcus James. Last year, James filed a suit against five defendants, including directors connected with Mayberry, to restrain them from removing him as CEO. Justice Bryan Sykes agreed to his request in a 13-point ruling in July.