1834 posts profit of $25.68 million for the six months period

Date: November 15, 2018

1834 Investments Limited (1834) posted revenue of $15.15 million, a 33% decline when compared to $22.45 million reported for the comparable period in 2017. For the quarter, revenue fell by 39% to $6.91 million (2017: $11.30 million).

Other operating income decreased by 52% to $35.79 million (2017: $74.54 million). Other operating income for the quarter closed at $18.65 million (2017: nil). As such, total revenue for the six month amounted to $50.94 million, 47% below last year’s corresponding period of $96.99 million.

Total expenses declined by 37% from $40.65 million in 2017 to $25.51 million in 2018. Of total expense, administrative expense went up by 68% to close at $9.50 million (2017: $5.65 million), while other operating expenses dropped by 54% to $16.01 million (2017: $34.99 million).

As such, profit from operations dipped by 55% from $56.34 million to $25.42 million for the six months ended September 30, 2018. Finance cost for the period amounted to $109,000 compared to $15,000 reported for the comparable period of 2017. Share of profit from interest in associate, net of tax totalled $3.67 million compared to $5.02 million booked twelve months earlier.

Consequently, profit from operations before taxation declined by 53% year over year to $28.98 million (2017: $61.35 million). For the quarter, profit from operations before taxation closed at $15.10 million relative to a loss from operations before taxation of $5.23 million in the prior comparative quarter.

Tax charges of $3.30 million were incurred for the six months period compared to $6.49 million reported in 2017. As such, profit for the period amounted to $25.68 million relative to profit of $54.86 million for the prior year. For the quarter, 1834 posted net profit of $14.33 million versus a net loss of $5.46 million in the previous corresponding quarter.

The earnings per share (EPS) for the period amounted to $0.021 (2017: $0.045). For the quarter, EPS of $0.0118 versus a loss per share (LPS) of $0.0045. The twelve-month trailing EPS amounted to $0.048. The number of shares used in this calculation was 1,211,243,827 units. As at November 14, 2018, the stock traded at $1.16.

Balance Sheet Highlights:

The Company, as at September 30, 2018, recorded total assets of $1.77 billion, a marginal increase when compared to $1.76 billion recorded last year. The movement was attributed to increase in ‘Securities Purchased Under Resale Agreements’ and ‘Assets Held for Sale’ which closed the period at $192.38 million (2017: $42.90 million) and $296.65 million (2017: $179.25 million), respectively. The upward movement was however tempered by declines in ‘trade and other receivables’ and ‘property, plant and equipment’ amounting to $20.57 million (2017: $58.43 million) and $8.46 million (2017: $12.92 million). Investment properties also contributed to the overall decline dropped to $429.24 million relative to $569.24 million in 2017.

Total Shareholders’ Equity as at September 30, 2018 closed at $1.73 billion, growth from the $1.68 billion recorded for the same period in 2017. This resulted in a book value of $1.43 compared to a value of $1.39 as at September 30, 2017.

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