Thu | Aug 17, 2017

Mayberry to reorganise subsidiary

Published:Friday | June 30, 2017 | 6:00 AMSteven Jackson
Peart

Mayberry Investments got shareholder approval on Wednesday to reorganise the subsidiary used to make its investments.

The annual general meeting gave the board the go-ahead to review "possible ways" to enhance shareholder value for Mayberry West Indies Limited.

Asked why directors who are entrusted and elected to enhance shareholder value would need shareholder approval to do the same for the subsidiary, CEO Gary Peart said they were acting on the advice of legal counsel Trevor Patterson.

"In instances like these, we refer to the experts, and the experts have advised us accordingly, and we are following their advice," Peart said.

Earlier this year, Mayberry Investments Limited added a new layer that will result in the company's investment portfolio being managed by a related firm controlled by its top shareholders, the Berry siblings.

That management firm, called Mayberry Asset Management Limited (MAML), was incorporated in St Lucia in 2006. Peart previously said the offshore company is a subsidiary of Mayberry with its own board and a small staff operating out of the St Lucia capital, Castries.

Mayberry West Indies Limited is used by MIL as a vehicle for its own investments.

In a deal sealed February 15, but retroactive to January 1, 2017, Mayberry West Indies Limited contracted MAML to manage

its portfolio, according to Mayberry's financial disclosures on the stock market.

Mayberry Investments made $829,000 net profit for its first quarter ending March or 99 per cent less profit than the $93.6 million earned a year earlier. Its total comprehensive income, however, doubled to $520.3 million due to unrealised gains from its investments.

On Wednesday, Mayberry expressed frustration with analysts and journalists who focus on its profit performance, saying they fail to recognise the value of the company's growth as evidenced in its total comprehensive income.

Analysts who want to continue being cutting edge will have to make adjustments in regard to how they view certain companies, Peart said.

steven.jackson@gleanerjm.com