First Rock assets hit J$4.8 billion
First Rock Capital Holdings Group posted a strong performance for the first quarter ended March 31, 2020, reporting US$800,000 in profits for its first quarter or J$108,000,000, as reported to the Jamaica Stock Exchange.
The company’s assets also stood at US$35 million or J$4.8 billion as at March 31, 2020.
In commenting on the results, President & Co-Founder Ryan Reid said “following the success of our IPO, we put a specific mandate in place and that is to settle down and perform. We are quite comfortable with the assets that we have acquired with the most recent being our Bamboo Avenue property which we bought for US$ 5,000,000 and our 75 per cent stake in Dolla Financial Services, which we acquired for US$500,000. There are other transactions that we are pursuing currently, but as you can appreciate and our shareholders would be pleased to know, our capital is a lot more cautious in light of COVID-19”.
The company’s efficiency ratio at 48 per cent sits comfortably below the industry threshold of 50 per cent but the target for the current financial year is 30 per cent, “we expect to get there” Reid stated.
This performance was buttressed by prudent deployment of capital, revenue growth and improved operational efficiency. A key risk mitigation strategy of FCH is the diversification of assets across multiple jurisdictions. The team has and continues to build out a strong portfolio of assets which creates ultimate value for our primary stakeholder, our shareholders.
Net Profit attributable to Ordinary Shareholders for the period amounted to US$797,485, this represents an increase of 88 per cent when compared to the prior quarter’s performance.
During the quarter, the Group acquired a super majority stake in Dolla-Financial Services Limited, a micro- lending company with operations in Jamaica and Guyana. This represents the first private equity transaction for the group and we have formulated a clear, precise and quantifiable strategy to grow the business both organically and through acquisition.
Additionally, the group acquired properties located at 1-3 Bamboo Avenue, Kingston 6 in Jamaica, totalling 3.45 acres and is moving assiduously to execute its luxury multi-family residential development.
Total assets of the Group at the end of the quarter stood at US$34,831,280, with Shareholders’ Equity of US$28,759,076. The Group also saw its liabilities increase by US$5,648,749 to stand at US$5,899,720 at the end of the period.
Reid reiterated that First Rock has two clear strategies, Real Estate and Private Equity, which are pursued via its four subsidiaries, which together with the Company forms the First Rock Grou