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).
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