Bermuda First Investment Company Limited - Financial Results for the three months ended September 30, 2016

Hamilton, Bermuda: 07 December 2016 – In a filing with the Bermuda Stock Exchange (“BSX”), Bermuda First Investment Company Limited. (the “Company” or “BFIC”; Ticker: BFIC.BH) today announced financial results for the three months ending September 30, 2016. The filing stated:

Bermuda First Investment Company Limited, a BSX listed investment holding company which owns a number of significant investments in BSX Bermuda listed companies, announces its results for the three months ended September 30, 2016.

Highlights:

·         Revenue of $0.2 million; and

·         Market value of investments as at September 30, 2016 of approximately $25.7 million.

Commenting on the results, J. Michael Collier, Chairman of BFIC said:

“The share prices of our investments continued to improve during the quarter and this trend has continued post the quarter end. The investments are significantly impacted by the Bermuda economy and with the economy improving this is flowing through to the financial results and share prices of the investments. We look forward to 2017 and the America’s Cup and other important infrastructure projects and believe they will positively impact our investments.”

Media Contacts:

Alasdair Younie                                                                 

Director                                                                          

Bermuda First Investment Company Limited                                    

Tel:  441-299-2897                                         

Email:  ay@icm.bm                                        

Financial summary

For the quarter ended September 30, 2016, the Company reported revenue of $0.2 million and an unrealized profit on its investments of approximately $0.5 million, (relating to the movement in the value of the Company’s investments between June 30, 2016 and September 30, 2016). Total expenses were $0.5 million and the Company’s undiluted earnings per share for the quarter was $0.06.

As at September 30, 2016, the Company’s investments had a total value of $25.7 million. As at September 30, 2016, the Company had net debt of $4.9 million and unsecured long term 2019 loan notes that it issued to its founder shareholders in October 2012 of $18.8 million.

Key Investments

KeyTech Limited (“KeyTech”)

KeyTech released the results for the year ended 31 March 2016 on 19 October 2016. The consolidated loss from operations was $2.4 million which was driven by an impairment of assets of $4.3 million in the current year and one-time staff termination charges of $1.4 million. Earnings before interest, depreciation, amortization and one time charges for the period was $22.5 million compared with $3.3 million in the prior year, an increase of $19.2 million. Consolidated revenue for the period was $89.3 million compared with $66.9 million in the prior year, an increase of $22.4 million. The company retired all of its subordinated debt of $24.7 million and reduced its long term debt by $6.4 million.

The increase in revenues was due to the acquisition of BOTCAT, the Cayman TV business and CableVision, in September 2014, and the realization of a full year of earnings. In addition, data revenues have grown both in Bermuda and Cayman organically and through acquisition. KeyTech is looking to make substantial investments in fibre infrastructure and advanced capabilities throughout its networks in both Bermuda and Cayman in order to better position itself and to provide customers with enhanced products.

Ascendant Group Limited (“Ascendant”)

Ascendant released its six month results for the period ended 30 June 2016 on 21 September 2016. Ascendant announced consolidated net income of $18.6 million compared to $970,000 in the comparable period in 2015. Operating earnings, excluding the impact of discontinued operations was $6.0 million during the first six months of the year, a $3.5 million improvement relative to Ascendant’s comparable operating earnings of $2.6 million in 2015.

The significant increase in the Group’s net income primarily reflected a $12.5 million gain on the sale of Bermuda Gas in April 2016. The improvement in operating earnings was driven by a $3.1 million, or 59.1% increase in BELCO’s net earnings, due to higher electricity sales revenues and lower operating costs. The improvement in basic tariff electricity sales revenues is primarily due to an increase in basic tariff rates, which were approved by the Energy Commission in March 2016 and came into effect on 1 June 2016. Overall electricity sales declined 597,000 kWh or 0.2% compared to 2015. Demand customer kilowatt hour (kWh) sales for the comparative periods were relatively flat, while Commercial customer kWh sales increased 0.4%. Residential customer kWh sales declined 0.7%

AG Holdings Limited operating earnings for the first six months totaled $598,000, a 177.3% improvement compared to 2015, largely due improved charge-out revenues at iEPC, a turnaround in profitability at iFM Limited and improved net earnings for Air Care Ltd.

Ascendant recently purchased 710,000 shares in line with the company’s share buyback programme to buy up to 1.5 million shares. It is earnings accretive and beneficial to all shareholders given the undervalued nature of the company’s share price. BFIC’s holding in Ascendant increased to 13.3% of the company.

Argus Group Holdings Limited (“Argus”)

Argus is due to release their results for the 6 months ended 30 September 2016 shortly. We would anticipate that the company will comment on their investment portfolio book in light of the increase in rates post the election of Donald Trump as US President.

Other investments

The Company’s other investments include small holdings in BF&M Limited, Bermuda Aviation Services Limited and Bermuda Press Holdings which are valued at approximately $0.1 million.

-Ends-

Bermuda First Investment Company Limited is a BSX listed Bermuda exempt investment holding company with significant investments in a number of BSX listed Bermuda companies. Its main investments are in KeyTech Limited and Ascendant Group Limited. The Company’s core strategy is to build strategic investments in local Bermudian companies. BFIC’s shares and loan notes are publicly traded and listed on the Bermuda Stock Exchange www.bsx.com (Tickers: BFIC.BH and BFICN.BH).