Mar 2009 Financial News

Supreme Ventures top shareholders stand to make J$212-m from dividend pay-out

Mar 27, 2009

When Supreme Ventures Limited (SVL) forks out $343 million of capital to shareholders this May, the company's top three shareholders - Ian Levy, Janette Stewart and Paul Hoo - will stand to make J$212 million from the first interim dividend payment for the year.

Yesterday, SVL advised the Jamaica Stock Exchange (JSE) that it will pay out ordinary dividends of 10 cents per share out of profits and another three cents a share as capital distribution on May 6 for shareholders on record as at April 15, 2009.

SVL shares in issue total 2,637,454,926, which means that the total payout will be $343 million.

J$79 million of the upcoming payout will be paid from the capital reserve from which the group paid out $421 million in capital distributions last year.

That capital reserve was put on the balance sheet in 2008 and "includes gains arising on the scheme of reorganisation and amalgamation of subsidiaries with the group", according to SVL's 2008 annual report.

The group transferred the assets, liabilities and operations of Coral Cliff Entertainment Limited (CCEL) and Village Square Entertainment Limited (VSEL) and the ownership of Chillout Ventures Limited which were previously subsidiaries of Jamaica Lottery Company Limited (JLC) to Prime Sports (Jamaica) Limited.
SVL also transferred the assets, liabilities and operations of JLC to the group.

CCEL, VSEL and JLC ceased operations and were put into members' voluntary liquidation.

Revaluation reserves deriving from the subsidiaries under liquidation totalled J$349 million and revenue reserves of the subsidiaries under liquidated totalled J$246 million, which combined created a capital reserve of J$567 million after costs.

At the end of January 2009 the reserve stood at J$146 million.

The top three own 61.7 per cent of the shares in the company but up to January held 64.7 per cent.

In early January, Paul Hoo sold 80 million of his shares in Supreme Ventures Limited (SVL) to INTRALOT (St Lucia) Limited, a subsidiary of the Greek firm by the same name with which the gaming and lottery company has partnered to enter the sports betting arena, from which he made at least J$220 million from the transaction.

From the single payment that will be made in May, Janette Stewart's shares should give her J$98 million, while Hoo will get J$81 million. Levy's share of the dividend will total J$33 million.

Last year however, Stewart made a total of J$114 million from capital distributions, while Hoo got J$105 million. Levy's shares gave him J$38 million.

The upcoming dividend payment represents 53 per cent of the company's annual profit for the 2008 financial year.

SVL saw a 59 per cent improvement in net profit during the last financial year which ended October 31, 2008 when they made J$646 million, or 24 cents per share.

For the three months to January 31, 2009, SVL made J$173 million net profit, lower than the J$215 million it made for the corresponding period in 2008.

During 2007, the gaming company made 15 cents on the share but in 2008 the company paid dividends twice by way of capital distributions in July and October at six cents and nine cents.

The J$421 million that was paid out in 2008 was higher than the 2007 net profit of J$405 million.

SVL's total capital base at the end of January stood at J$3.1 billion.


Source:
Jamaica Observer
Friday March 27, 2009

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