JMMB Group Gets Approval from Shareholders to Issue 325M Ordinary Shares 

During its annual general meeting, JMMB Group received a unanimous vote from the majority of shareholders in attendance, and those voting by proxy, for the resolution to issue an additional 325M (325,000,000) JMMB Group Limited (JMMBGL) ordinary shares, at a future date to be determined by the company. 

The proposed offer is consistent with JMMBGL’s growth strategy, and will permit the JMMB Group of companies to continue its organic expansion and diversification, through investment in other entities, whether by acquisitions or strategic investments.  The proceeds from the proposed offer will provide the company, and the rest of the JMMB Group of companies, with greater financial flexibility to quickly take advantage of changing economic, regulatory and market conditions.

JMMBGL expects to announce the timing and the pricing of the proposed offer within the coming weeks, with the offer expected to be launched during the last quarter of 2019, subject to all regulatory approvals being obtained, and to prevailing market conditions. The details of the offer will be contained in a published prospectus, upon the requisite regulatory approvals.

JMMB Group’s Strategic Direction 
The JMMB Group, in sharing about its strategic plans, highlighted there would be greater focus on consolidating its operations across the region, through standardization of technology, processes and procedures to extract greater synergies and maximize efficiencies. As part of this process, the Group will also implement centralized operations and support services for key support functions, to drive greater productivity. 

Keith Duncan, JMMB Group CEO, further said that the company's plan would also include new business lines, segments and acquisitions; even as it deepened its presence in the current markets in which it operates, to drive revenue. 

Small and medium-sized enterprises (SME) was one of the new segments that the Group indicted that it would target, in a more deliberate way. In underscoring the importance of the sector, Duncan noted that SMEs are a significant contributor to gross domestic product (GDP), providing 70-80% of employment in Jamaica; yet, according to 2018 data, MSMEs only attracted approximately 11% of private sector credit. It is against this background thatJMMB Group is seeking to fill the current gaps that exist for the growth of this segment.  

In outlining the company’s plans, Duncan revealed that the necessary support, structures and capacity-building would be put in place to better facilitate SMEs. The CEO said that JMMB Group has taken steps and, earlier this year, rolled-out of the JMMB SME Resource Centre, which provides business advisory services to support these SMEs. Duncan added, “We have made changes to our credit policy and procedures to be more appropriate and accommodating to facilitate more lending to the sector. (In addition) we are resourcing and training our team members as SME specialists, in recognition of the targeted service and the unique needs of this segment.” 

The Group plans to roll out its complete suite of offerings to target SMEs, before the end of the financial year. 

Patricia Sutherland, who has oversight for operations, indicated that increasing digital access is among the top priorities of the Group, in a bid to increase its reach and drive revenue.  “For 2019 and beyond we are looking to launch our Visa debit card; we have been working on improving our online banking, Moneyline, having done a recent release of an upgrade; and plans are afoot to roll-out  automated teller machines.” The company has plans to make the entire client experience more seamless and offer a digital option to clients, from the client boarding process, to the financial partnership conversations.  

Duncan also pointed to acquisitions as part of JMMB Group’s growth model. This is in keeping with the recent trend in the local financial sector.  Earlier this year, JMMB Group announced its acquisition of no less than 20% of ownership in AQY Alignvest. AQY is currently set to acquire 100% of the ordinary shares of Sagicor Financial Corporation (SFC). 

In hailing this AQY acquisition for bolstering the Group’s growth prospects, Julian Mair, chief investment strategist, notes “with this acquisition, JMMB Group will be able to materially grow its income stream and further diversify its earnings across the Caribbean and business lines,” such as life insurance. This acquisition will therefore auger well for the future growth and financial performance of the company and its shareholders. 

The Group CEO further announced that the regional financial entity is targeting profitability of over J$9 billion, over the next 3 years; with earnings it expects from the current acquisition, and those in the pipeline, combined with the steady growth of approximately 15% anticipated from JMMB Group.  
 
Financial Performance 
JMMB Group, which offers: investments, insurance brokerage, foreign exchange trading, money transfer and fund management, has maintained a stable financial outlook, with 7% increase in its profit, year-over- year, for the financial year ending March 31, 2019. 
This solid financial performance has resulted in investor confidence and increased shareholder value. As evidence of this, at the end of the 2018/ 2019 financial year (March 31, 2019), the JMMB Group stock price appreciated by 23%,  and since then it has increased by 81%, as at September 13, with a share price of J$47.06.