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News : Local Last Updated: May 15th, 2016 - 21:55:32


Derrimon flavour
By Marston Gordon
May 15, 2016, 21:49

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Mr. Derrick Cotterell is the Chairman and Chief Executive Officer of Derrimon Trading Co. Ltd., a company listed on the Junior Market of the Jamaica Stock Exchange. He is the single largest shareholder with 40% of the outstanding shares, and if connected parties are included they hold an estimated 75% of the shares.

The company was listed in December 2013 and in August 2014 it acquired 49% of Caribbean Flavours and Fragrances Ltd. (CFFL), another company also listed on the Junior Market, for $129,282,994.


Derrimon proudly states in its audited financial statements that it “participates in the financial and operating policy decisions but it does not control Caribbean Flavours”.
It is unclear if there are independent directors on the board of CFFL as there is no statement on governance in the 2015 audited report, but regardless, the company is seemingly operating as a bank to Derrimon.

In its Q3 2016 unaudited report CFFL has loaned $101,067,000 to Derrimon, unsecured at 10.25% interest rate per annum, that is, 78% on Derrimon’s principal investment in CFFL. Worse, in the nine months to March 31, 2016 CFFL net profit was $56,418,000 and loan to Derrimon in the same period was $51,066,000.

The outstanding loan (short term investment according to CFFL) to Derrimon equates to $1.12 per share and given the last time CFFL paid a dividend it was April 2014 of $0.10 per share. The disclosure of the “investment” in CFFL report is inadequate, there is no indication if even the interest is being paid or accrued.


Mr. Cotterell, please don’t take minority shareholders for prekeh, it needs more flavouring and fragrance to it, pay out the money!

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