Apr 2008 Financial News

BER Releases Year End Results

Apr 08, 2008

Berger Paints Trinidad Limited (BER)
Results for the Year Ended December 31, 2007

Earnings Per Share
For the Year Ended December 31, 2007, Berger Paints Trinidad Limited (BER) reported a Net Loss of $0.2 million. This translated into a Loss Per Share (LPS) of 5 cents compared to a LPS of 27 cents in FY06. At the Nine Months Ended September 30, 2007, the Company reported a LPS of 20 cents and thus a gain of 15 cents was realized in Q407.

Financials
• Revenue up 9.7 per cent from $45.2 million to $49.6 million
• Cost of Sales up 8.6 per cent or $2.6 million to $33.0 million
• Gross Profit increased 11.9 per cent or $1.8 million to $16.7 million
• Expenses up 13.5 per cent or $2.2 million to $18.2 million
• Operating Loss of $1.6 million compared to an Operating Loss of $1.2 million in FY06
• Net Loss of $0.2 million compared to a Net Loss of $1.4 million in FY06

Recommendation
The shares of BER last closed at a price of $3.40 on the local exchange. We are forecasting an EPS of $0.07 for fiscal 2008. At this forecast and the current price, this share continues to trade at an extremely high multiple of 48.6 times. As such, we maintain our recommendation of SELL.


Nancy Chen
WISE Equity Research Team