Move pays off for Cave Shepherd

Having divested of its iconic department stores and shifted more to financial services, Cave Shepherd & Co says the group is in a much stronger position with cash and cash equivalents of $45 million.

In its report to investors and stakeholders, the Barbadian group of companies, headed by chief executive officer John Williams and chairman Sir Geoffrey Cave spoke of the group’s growth.

The Cave Shepherd brand, which is more than 100 years old, posted half-year net profits of $4.66 million for the period ending June 30, when compared to $3.48 million for the corresponding period of 2021.

Sir Geoffrey and Williams, in their recently- published Directors’ Report accompanying the financial highlights, described the first half of the financial year as “a strong start. . . with all our businesses making a positive contribution”. They indicated that profit attributable to shareholders was $3.8 million, compared to $2.4 million for the first half of 2021.

This performance represented a 58 per cent increase on 2021 and cited the relaxation of many of the COVID-19 protocols in Barbados and the increased domestic economic activity during the first six months of 2022.

“Our financial services businesses continued to recover from the difficult economic conditions due to the pandemic over the last two years, with all of them producing better results than the prior year so far in 2022.

“Fortress Fund Managers recorded a good performance despite recent declines in financial markets, while DGM Financial Group recorded improved profitability compared to last year,” Sir Geoffrey and Williams reported.

Cave Shepherd Card Services, which trades as Payce Digital, saw its delinquency rate drop to pre-pandemic levels, as the company grew, showing improved results.

SigniaGlobe, a non-bank financial institution, in which Cave Shepherd & Co is a significant investor, “recorded a strong recovery in activity”. However, the company said the final numbers were impacted by the “unexpected Pandemic Contribution Levy introduced by Government in their Budgetary Proposals”.

The only remaining retail operation in the Cave Shepherd Group – GCS Limited, known as Ganzee, “performed well” according to the directors. They said this was linked to improvements in tourist arrivals.

Offering more insight into the group’s performance during the first half of the year, the directors said its investment portfolio was down $1.7 million. They explained the group has invested in “conservative, high-quality bonds which normally show minimal price movement”, however the company said there was “unusual volatility”.

Meanwhile, in their note to shareholders, the directors offered assurance of the group’s stability with more than $45 million in cash and cash equivalents.

“Therefore, significant resources are available to seek out new investment opportunities as well as support the growth and expansion of the existing businesses here and in the region,” they pointed out.

Directors of Cave Shepherd approved an interim dividend of $0.12 per share which will be paid at month-end.