Date: November 20, 2019
138SL’s revenue increased by 30% to $1.01 billion relative to the $780.74 million recorded for 2018. Other operating income decreased for the year under review, by 28% to $38.77 million relative to $53.66 million reported for the year ended September 30, 2018. Revenue for the fourth quarter surged to $362.29 million (2018: $165.97 million), while other operating income fell by 3% to $11.01 million (2018: $11.39 million).
Administrative expenses increased by 52% to $791.30 million (2018: $519.14 million). Administrative expenses for the quarter experienced a 32% increase to $230.31 million (2018: $174.67 million). Operating profit for the year amounted to $260.93 million, a decline of 17% compared to $315.26 million reported for the year prior. For the fourth quarter, operating profit closed at $142.98 million (2018: $2.68 million). The Company stated, “expenses were impacted by additional provisions for doubtful debt.”
In addition, Management highlighted that, “For the full year, there were non-recurring expenses that impacted operating profit such as, J$54.2 Million from the Arbitration Award in respect of a dispute which arose with the contractor for the first phase of the development in 2016 as well as utility cost which increased exponentially by 53%. However, corrective action have substantially been implemented and the management is seeing the benefits of controlling consumption which will reverse this trend.”
The Company also reported finance cost of $280.53 million (2018: $406.39 million), a 31% decrease year on year. For the quarter, finance cost fell by 8% to close at $70.62 million (2018: $76.43 million). 138SL noted, “this was primarily due to lower interest rates.”
Losses before taxation for the year end amounted to $19.61 million compared with the loss of $91.13 million last year. Following tax credits of $31.40 million (2018 tax credit: $74.88 million), net profit totalled $11.80 million, compared to a net loss of $16.25 million in the same period last year. Net profit for the quarter amounted to $72.22 million relative to a net loss of $22.20 million in the prior comparable period.
Earnings per share (EPS) for the period was recorded at $0.03 relative to a loss per share of $0.04 a year earlier. Earnings per share for the quarter totalled $0.17 in contrast to a loss per share of $0.05. The number of shares used in this calculation was 414,500,000. As at November 19, 2019, the stock traded at $2.86.
Furthermore, “We have a positive outlook on the operations of 138 SL, our occupancy levels are currently above 97% and the focus on key areas mentioned above is expected to result in an upward trajectory of the financial performance of the company,” the Company mentioned.
Balance Sheet at a Glance:
As at September 30, 2019, ‘Total Assets’ increased by 25% to $11.02 billion (2018: $8.84 billion). This increase was primarily driven by a 10% increase in ‘Financial asset-service commission rights’ to $10.18 billion relative to $7.94 billion recorded twelve months earlier. ‘Deferred tax asset’ also contributed to the increase with a 18% growth to $207.60 million versus $176.20 million in 2018.
‘Total Shareholders’ Equity totalled $5.53 billion (2018: $3.35 billion), which resulted in a book value of $13.35 (2018: $8.09).
Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.