1834 reports 100% increase in year end net profit

July 16, 2021

1834 Investments Limited, for the year ended March 31, 2021, reported a 16% decline in revenue from $25.08 million for the comparable period in 2020 to $21.09 million in 2021. For the quarter, the Company generated revenue of $7.39 million (2020: $7.63 million), a 3% decline year over year. Fair value gain on investment properties amounted to $55.40 million (2020: $22.75 million) for the year ended March 31, 2021.

Other operating income rose to $53.53 million (2020: $47.70 million). Consequently, total income for the period increased by 36% to $130.03 million relative to $95.52 million for the corresponding period last year. Total income for the quarter closed at $76.54 million versus total income of $12.70 million reported in the corresponding quarter in 2020.

Total expenses declined by 32% from $88.29 million in 2020 to $60.45 million in 2021. Of total expenses, administrative expenses went up 45% to close the period at $28.42 million (2020: $19.62 million). While, other operating expenses amounted to $33.23 million (2020: $63.57 million).  Impairment gain amounted to $1.20 million, relative to a loss of $5.10 million booked in 2020. Total expenses for the quarter closed at $179,000 (2020: $23.12 million).

As such, profit from operations closed at $69.58 million versus profit from operations of $7.23 million booked in the prior comparable period. Profit from operations for the quarter totalled $76.36 million compared to loss from operations of $10.41 million documented in the previous corresponding quarter.

Finance costs rose 156% from $373,000 in 2020 to $956,000 recorded for the period under review. As such, profit from continuing operations before other income closed at $68.63 million compared to profit from continuing operations before other income amounting to $6.86 million booked in 2020.

No ‘Loss on liquidation of subsidiaries’ was recorded relative to $1.90 million booked in 2020 and a ‘Share of profit from interest in associate, net of tax’ of $18.14 million (2020: $46.56 million). Thus, profit from operations before taxation totalled $86.77 million relative to $51.52 million booked the prior financial year.

Tax charges of $5.69 million were incurred for the year end, compared to $10.93 million the prior year. Consequently, profit for the year end closed at $81.08 million relative to $40.59 million recorded in 2020. While, for the quarter, net profit amounted to $80.43 million compared to net profit of $27.52 million booked last year.

The earnings per share for the year amounted to 6.69 cents (2020: 3.35 cents). For the quarter, the earnings per share amounted to 6.64 cents versus an EPS of 2.27 cents. The number of shares used in this calculation was 1,211,243,827 units. As at July 15, 2021, the stock traded at $1.53 with a corresponding P/E of 22.86 times.

Balance Sheet Highlights:

The Company, as at March 31, 2021, recorded total assets of $1.66 billion, an increase of 11% when compared to $1.50 billion recorded last year. The movement was attributed to a 56% increase in ‘Investment’ closing at $435.19 million (2020: $279.15 million ) and a 13% growth in ‘Investment Properties’ to $492.50 million (2020: $437.10 million), respectively. This was however tempered by an increase in ‘Cash and cash equivalents’ which closed at $34.27 million (2020: $110.58 million).

Total Stockholders’ Equity as at March 31, 2021 closed at $1.51 billion, a 5% increase from $1.44 billion the prior year. This resulted in a book value of $1.25 compared to the value of $1.19 as at March 31, 2020.


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