1834 reports 36% increase in six months net profit

Date: November 20, 2019

1834 Investments Limited (1834) posted revenue of $12.65 million, a 16% decline when compared to $15.15 million reported for the comparable period in 2018. For the quarter, revenue inched up by 1% to $6.98 million (2018: $6.91 million).

Other operating income increased by 79% to $63.91 million (2018: $35.79 million). Other operating income for the quarter closed at $37.79 million (2018: $18.65 million). As such, total revenue for the six months amounted to $76.56 million, 50% above last year’s corresponding period of $50.94 million.

Total expenses went up by 38% from $25.51 million in 2018 to $35.30 million in 2019. Of total expenses, administrative expense went up by 89% to close at $17.95 million (2018: $9.50 million), while other operating expenses climbed by 8% to $17.36 million (2018: $16.01 million).

Profit from operations improved 62% from $25.42 million in 2018 to $41.26 million for the six months ended September 30, 2019. Finance cost for the period amounted to $1.45 million compared to $109,000 reported for the comparable period of 2018. Share of profit from interest in associate net of tax, totalled $3.67 million (2018: $3.67 million).

Consequently, profit from operations before taxation expanded by 50% year over year to $43.47 million (2018: $28.98 million). For the quarter, profit from operations before taxation closed at $24.39 million relative to $15.10 million in the prior year’s comparable quarter.

Tax charges of $8.59 million were incurred for the six months period compared to $3.30 million reported in 2018. As such, profit for the period amounted to $34.88 million relative to profit of $25.68 million for the prior year. For the quarter, 1834 posted net profit of $16.54 million versus a net profit of $14.33 million in the previous year’s corresponding quarter.

The earnings per share (EPS) for the period amounted to $0.029 (2018: $0.021). For the quarter, EPS of $0.014 versus an earnings per share of $0.012. The twelve-month trailing EPS amounted to $0.012. The number of shares used in this calculation was 1,211,243,827 units. As at November 20, 2019, the stock traded at $1.12.

Balance Sheet Highlights:

The Company, as at September 30, 2019, recorded total assets of $1.57 billion, an 11% decline when compared to $1.77 billion recorded last year. The movement was attributed to a decrease in ‘Investment Properties’ to $414.35 million (2018: $429.24 million). Notably, the Company reported nil for ‘Assets Held for Sale’ and ‘Pension Fund Receivable’ compared to $296.65 million and $75.09 million respectively. The downward movement was however tempered by an increase in ‘Cash and Cash Equivalents’ which closed at $203.10 million (2018: $66.43 million).

Total Shareholders’ Equity as at September 30, 2019 closed at $1.43 billion, compared to $1.73 billion recorded for the same period in 2018. This resulted in a book value of $1.18 compared to a value of $1.43 as at September 30, 2018.



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