138SL reports 28% decline in year end net profit

November 16, 2021

138SL’s revenue decreased by 33% to $813.21 million relative to the $1.22 billion recorded for 2020. Other operating income decreased for the year under review, by 56% from $107.43 million to $47.27 million reported for the year ended September 30, 2021. Revenue for the fourth quarter declined to $30.68 million (2020: $221.26 million), while other operating income declined by 88% to $2.08 million (2020: $17.10 million).

Administrative expenses decreased by 44% to $422.02 million (2020: $757.57 million). Administrative expenses for the quarter experienced a 80% decrease to $50.94 million (2020: $250.93 million).

Operating profit for the year amounted to $438.46 million, a decrease of 23% compared to $567.73 million reported for the year prior. For the fourth quarter, operating loss closed at $18.18 million, relative to a loss of $12.47 million booked in 2020.

The Company also reported finance cost of $242.21 million (2020: $257.36 million), a 6% decrease year on year. For the quarter, finance cost rose by 6% to close at $66.01 million (2020: $62.03 million).

Profit before taxation for the year end amounted to $196.25 million, 37% decrease from $310.37 million recorded twelve months prior.

Following tax credits of $48.31 million (2020 tax credit: $6.41 million), net profit totalled $244.56 million, compared to a net profit of $316.78 million in the same period last year. Net loss for the quarter amounted to $39.15 million relative to a net loss of $84.99 million in the prior comparable period.

Comprehensive loss closed the financial year at $111.26 million versus a comprehensive loss of $1.01 billion for 2020.

Earnings per share (EPS) for the period was recorded at $0.59 relative to an earnings per share of $0.76, a year earlier. Loss per share for the quarter was $0.094 vs a loss per share of $0.21 booked for the fourth quarter of 2020. The number of shares used in this calculation was 414,500,000. As at December 31, 2021, the stock traded at $4.32 with a corresponding P/E of 7.32 times.

Management noted, “the group was successful in its negotiations with noteholders to restructure its loan notes. This will allow the group to partially mitigate against the negative impact of the Covid-19 pandemic on occupancy and the general business operations.”

Balance Sheet at a Glance:

As at September 30, 2021, ‘Total Assets’ increased slightly less than 1% to $10.14 billion (2020: $10.08 billion). This increase was primarily driven by a 106% increase in ‘Receivables’ to $1.28 billion from $619.95 million recorded twelve months earlier which was offset by a $257.80 million decrease in ‘Short Term deposits’ to $760,000 (2020: $258.56 million) and a $348.44 million decrease in ‘Financial asset-service commission rights’ to $8.51 billion (2020: $8.86 billion).

‘Total Shareholders’ Equity totalled $4.42 billion (2020: $4.53 billion), which resulted in a book value of $10.67 (2020: $10.94).



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