Dodridge Miller (left) makes a point to financial consultant Hilford Murrell while David Allan (at right), a member of Sagicor's board, looks on.

THE FACT that Sagicor Financial Corporation continues to slip down the ranks of the most highly valued stocks on the Barbados Stock Exchange has not escaped its management.

President and chief executive officer Dodridge Miller raised this concern as he addressed an investor's forum organised by his company at Hilton Barbados last Tuesday morning.

"I want to just touch on something that has been niggling at me for some time . . . despite [our financial] performance, the share prices of Sagicor Financial Corporation continue to struggle to maintain a strong position in the region's stock exchanges," he said to members of the business community and the Press gathered at the Needhams Point, St Michael hotel.

Miller pointed out that when Sagicor first launched on the stock exchange in 2003, it had a list price of $1.75 per share. By May 30, 2005, the share price reached $5 a share, which he attributed to Sagicor's 2004 profits of $72 million.

However, despite continuing to post better profits, Sagicor's share price has found it difficult to maintain a value higher than $5 per share, ending December 2005 with a share price of $4.30 per share, while dipping as low as $3.90 per share this April.

During the question-and-answer period Miller lamented this situation, which made it difficult for Sagicor to raise funds on the regional capital markets.

"I would say that there is a lack of fundamental thinking being reflected in our markets, and there is hope that this would change – because it has an impact on our ability to raise capital regionally, and will also have an impact on the extent to which ownership remains in the region," he said.

According to its 2005 annual report, Sagicor went to the international market this May with senior notes bearing interest of 7.5 per cent and due in 2016, with an aggregate maturity value of about $300 million. The notes were oversubscribed and out of the net proceeds Sagicor was able to refinance bank loans totalling $150.7 million.

Miller added he hoped Sagicor's share price would reach its "true value", should shareholders agree this Wednesday to remove the five per cent share restriction.

(CH)