1834 posts loss of $59.56 million for the nine months ended December 31, 2018

Date: March 28, 2019

1834 Investments Limited (1834) posted operating income of $21.87 million, a 37% decline when compared to $34.81 million reported for the comparable period in 2017. For the quarter, operating income fell by 46% to $6.73 million (2017: $12.36 million).

Other income decreased by 50% to $37.16 million (2017: $74.54 million). Other income for the quarter closed at $1.36 million (2017: nil). As such, total revenue for the six month amounted to $59.03 million, 46% below last year’s corresponding period of $109.35 million.

Total expenses increase by 67% from $57.80 million in 2017 to $96.44 million in 2018. Of total expense, administrative expense went up by 29% to close at $21.21 million (2017: $16.49 million), while other operating expenses increased by 82% to $75.23 million (2017: $41.31 million).

As such, profit from operations plunged from a profit of $51.56 million to loss of $37.42 million for the nine months ended December 30, 2018. Loss from operation for the quarter amounted to $62.84 million relative to a loss of $4.79 million for the corresponding quarter of 2017.

Finance cost for the period amounted to $83,000 compared to $37,000 reported for the comparable period of 2017. Share of profit from interest in associate, net of tax totalled $5.51 million compared to $53.04 million booked twelve months earlier. Loss from disposal of subsidiaries amounted $24.97 million compared to nil in 2017.

Consequently, losses from operations before taxation amounted to $56.96 million versus a profit of $104.56 million for the same period in 2017. For the quarter, loss from operations before taxation closed at $85.95 million relative to a profit from operations before taxation of $43.21 million in the prior comparative quarter.

Tax charges of $2.60 million were incurred for the nine months period compared to $15.33 million reported in 2017. As such, the loss for the period amounted to $59.56 million relative to profit of $89.23 million for the prior year. For the quarter, 1834 posted net loss of $85.24 million versus a net profit of $34.37 million in the previous corresponding quarter.

The loss per share (LPS) for the period amounted to $0.049 in comparison to an earnings per share (EPS) of $0.074 in 2017. For the quarter, LPS of $0.070 versus a earnings per share (EPS) of $0.028 The twelve-month trailing LPS amounted to $0.055. The number of shares used in this calculation was 1,211,243,827 units. As at March 28, 2018, the stock traded at $1.10.

Balance Sheet Highlights:

The Company, as at December 30, 2018, recorded total assets of $1.58 billion, a decrease when compared to $1.77 billion recorded last year. The movement was attributed to decrease in ‘Investments’ which closed the period at $295.34 million (2017: $491.41 million).

Total Shareholders’ Equity as at December 30, 2018 closed at $1.52 billion, a decrease from the $1.69 billion recorded for the same period in 2017. This resulted in a book value of $1.257 compared to a value of $1.397 as at December 30, 2017.

 

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.

2019-03-28T23:14:35+00:00