LASCO FINANCIAL SERVICES LIMITED

LASCO FINANCIAL SERVICES LIMITED 1st Quarter April – June 2015 The Board of Directors of LASCO Financial Services Limited (LFSL) is pleased to present the company’s first quarter unaudited financial results for the 2015/16 financial year.

LFSL recorded $191.6M in revenue for its first quarter (April to June 2015), which represents growth of $14M or 8% relative to the corresponding period in 2014. Growth continues to be driven by our marketing efforts in the diaspora, expansion of services through our remittance agent network, expansion of our cambio network and our thrust to increase our loans business.

1st Q 2015 $’000

1st Q 2014 $’000

TOTAL REVENUE

191,642

177,456

NET PROFIT

54,153

47,471

$0.0441

$0.0385

EPS

Total expenses for the first quarter increased by 5.5% to $73.1M compared to the corresponding period. This is primarily due to a 35% increase in administrative expenses and 15% decrease in selling and promotion expenses. The net increase is reflecting the expansion of our network, staff cost and software support to manage operational efficiencies and to build customer relationships. LFSL continues to review its marketing tactics which gave rise to a reduction in selling and promotion expenses. The quarter ended with total comprehensive income of $55.4m or 17% higher than the corresponding period. In August 2014, share options were granted to directors and key staff resulting in a $1.3M expense in current period for share option costs to close the period ended 30 June 2015 with net profit of $54.1 or 14% higher than the comparative period.

BALANCE SHEET HIGHLIGHTS

CASH & CASH EQUIVALENTS TOTAL ASSETS TOTAL STOCKHOLDER’S EQUITY

Q1 2015

Q1 2014

$’000

$’000

563,333

425,992

1,046,326 867,876

880,827 698,607 1

LFSL now holds assets of over one billion dollars, reflecting growth of 18.7% over the corresponding quarter of the previous year. Also notable are the increases in cash and short term deposits and stockholder’s equity which grew by 32% and 24% respectively. The company’s liquidity is necessary for the business model and is an integral part of its ability to continue on a sustainable growth path.

During the quarter, our growth initiatives included the launch of our motorcycle loan product and the opening of our new cambio branch in Port Antonio. We also recommitted our sponsorship of the Social Development Commission and its numerous community-based national developmental projects such as the staging of its national T20 Community Cricket Competition. We fully endorse this year’s theme “think community, think business”. LFSL is also a proud partner of Recycling Partners of Jamaica Limited (RPJL) which is promoting a clean Jamaica through recycling initiatives from which our customers can earn. Vouchers are issued by the RPJL for the redemption of PET bottles; these vouchers can be encashed at a LASCO MoneyGram location. We encourage you all to participate and make the proceeds payable to your favourite charities. Thank you for placing your confidence is us. We will continue to work towards an investment return that is favourable for you. Our board and management also extend its good wishes to the agents, customers and staff who continue to help us to Make

it Happen!

JACINTH HALL-TRACEY MANAGING DIRECTOR

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LASCO FINANCIAL SERVICES LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE 3 MONTHS ENDED 30 JUNE 2015

Note

UNAUDITED

UNAUDITED

AUDITED

3 MONTHS ENDED

3 MONTHS ENDED

12 MONTHS ENDED

30 JUNE 2015

30 JUNE 2014

31 MARCH 2014

$'000

$'000

$'000

REVENUE Income Other income

EXPENSES: Administrative and other expenses Selling and promotion expenses

PROFIT FROM OPERATIONS Finance cost PROFIT BEFORE TAXATION Taxation

182,323 9,320 191,643

170,484 7,088 177,572

679,258 34,219 713,477

73,126 64,247

53,842 76,381

224,176 298,062

137,373

130,223

522,238

54,270

47,349

191,239

116

10

167

54,154

47,339

191,072

-

-

NET PROFIT FOR THE PERIOD

54,154

OTHER COMPREHENSIVE INCOME: Items that will or may not be reclassified to profit or loss Share Option Plan TOTAL COMPREHENSIVE INCOME

1,388 55,542

Number of shares in issue Basic Earnings per stock unit

3

47,339

191,072

47,339

6,838 197,910

1,228,102,990

1,228,102,990

1,228,102,990

$0.0441

$0.0385

$0.1556

-

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LASCO FINANCIAL SERVICES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 Note

UNAUDITED

UNAUDITED

AUDITED

JUNE

MARCH

2015

JUNE

2014

2015

$'000

$'000

$'000

ASSETS Cash and short term deposits

563,333

425,992

512,645

Loans and receivables

339,059

330,818

358,305

Investment property

100,000

100,000

100,000

Property, plant and equipment

28,567

24,017

28,041

Intangible assets

15,367

TOTAL ASSETS

1,046,326

880,827

1,015,223

177,438

181,451

201,184

1,012

769

1,705

178,450

182,220

202,889

50,523

50,523

50,523

-

16,232

LIABILITIES AND EQUITY LIABILITIES: Payables Related companies

EQUITY: Share capital

3

Share option reserve Retained earnings

TOTAL LIABILITIES AND EQUITY

8,226

-

6,838

809,127

648,084

754,973

867,876

698,607

812,334

1,046,326

880,827

1,015,223

Approved for issue by the Board of Directors on 29 July 2015 and signed on its behalf by:

__________________________

__________________________

L A Chin

Jacinth Hall-Tracey

Chairman

Managing Director

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LASCO FINANCIAL SERVICES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 3 MONTHS ENDED 30 JUNE 2015

Balance at 1 April 2014

Share

Share Option

Retained

Capital

Reserve

Earnings

Total

$'000

$'000

$'000

$'000

-

600,745

651,268

-

47,339

47,339

-

648,084

698,607

754,973

812,334

50,523

Total comprehensive income: Net profit Balance at 30 June 2014

50,523

Balance at 1 April 2015

50,523

6,838

Total comprehensive income:

-

Net profit

-

Other comprehensive income

-

Balance at 30 June 2015

-

54,154 1,388

50,523

8,226

-

54,154 1,388

809,127

867,876

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LASCO FINANCIAL SERVICES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 30 JUNE 2015 UNAUDITED 3 MONTHS ENDED

UNAUDITED 3 MONTHS ENDED

AUDITED 12 MONTHS ENDED

30 JUNE 2015

30 JUNE 2014

31 MARCH 2015

$'000

Net profit for the period

$'00 0

$'000

54,154

47,339

191,072

(3,409)

(20,468)

(20,981)

Net cash provided by operating activities

50,745

26,871

170,091

Net cash (used in)/provided by investing activities

(1,718)

(245)

60,518

Adjustment to reconcile profit for the period to net cash used in operating activites.

Net cash used in financing activities

NET INCREASE IN CASH AND CASH EQUIVALENTS

-

-

(36,844)

49,027

26,626

193,765

1,661

4,192

(160)

Cash and cash equivalents at beginning of period

512,645

395,174

319,040

CASH AND CASH EQUIVALENTS AT END OF PERIOD

563,333

425,992

512,645

Effects of exchange rate translation on cash and cash equivalents

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LASCO FINANCIAL SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2015

1. IDENTIFICATION AND PRINCIPAL ACTIVITY: (a) LASCO Financial Services Limited is a limited liability company incorporated and domiciled in Jamaica. The registered office of the company is 27 Red Hills Road, Kingston 10. The company is listed on the Junior Market of the Jamaica Stock Exchange. (b) The principal activities of the company are: - The company is a licenced Cambio dealer regulated by the Bank of Jamaica. The Cambio facilitates the sale and purchase of foreign currencies to and from its related companies as well as the general public. -

The provision of services as an agent of MoneyGram International Money Transfer which is a Remittance company facilitating person to person transfers for a fee, in accordance with licenses issued by the Bank of Jamaica.

-

The rental of properties.

-

The granting of loans for personal and business purposes. By Order dated 4 March 2015, the company received a renewal of the exemption from the provisions of the Money Lending Act by the Minister of Finance for one year from 4 March 2014, renewable annually

(c) LASCO Financial Services (Barbados) Limited is a 100% owned subsidiary of the company. LASCO Financial Services (Barbados) Limited is incorporated in Barbados under the Companies Act Cap.308 of the Laws of Barbados. The company and its subsidiary are referred to as “the Group”.

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LASCO FINANCIAL SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2015 2. BASIS OF PREPARATION: These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and their interpretations adopted by the International Accounting Standards Board, and have been prepared under the historical cost convention. They are also prepared in accordance with provisions of the Jamaican Companies Act and as set out in note 3 of the audited financial statements as at 31 March 2015. 3.

SHARE CAPITAL: Authorised – 1,961,200,000 (2013 – 1,961,200,000) Ordinary shares of no par value 2015 $’ 00 0

2014 $’ 00 0

50,523

50,523

Stated capital, issued and fully paid 1,228,102,990 Ordinary shares of no par value

.

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