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.

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.

2018-11-15T22:21:58+00:00