1834 reports 67% decline in six months net profit

November 15, 2021

1834 Investments Limited (1834) posted revenue of $13 million, a 30% increase when compared to $9.98 million reported for the comparable period in 2020. For the quarter, revenue went up by 10% to $5.59 million (2020: $5.07 million).

Other operating income decreased by 69% to $11.88 million (2020: $37.77 million). As such, total revenue for the six months amounted to $24.87 million, 48% below last year’s corresponding period of $47.75 million. Other operating income for the quarter closed at $353,000 (2020: $13 million), which led to a total revenue for the quarter of $5.95 million (2020: $18.07 million).

Total expenses went down by 36% from $45.13 million in 2020 to $28.98 million in 2021. Of total expenses, administrative expense went down by 51% to close at $13.85 million (2020: $28.29 million), while other operating expenses decreased less than 9% to $15.84 million (2020: $17.39 million). The company recorded an increase in impairment gain of $712,000 (2020: 547,000).

Operating expenses for the second quarter decreased by 25% to $17.27 million from $23.11 million booked twelve months earlier. As a result, loss from operations closed the quarter at $11.32 million versus a loss of $5.04 million booked in 2020.

Finance cost for the period amounted to $706,000 compared to $388,000 reported for the comparable period of 2020. As a result, loss from operations before other income amounted to $4.82 million, relative to a profit of $2.23 million for the six months ended September 30, 2020. Share of profit from interest in associate net of tax, totalled $9.35 million (2020: $10.91 million).

Consequently, profit from operations before taxation reduced by 66% year over year to $4.53 million (2020: $13.15 million). For the quarter, loss from operations before taxation closed at $10.27 million relative to profit from operations of $3.65 million in the prior year’s comparable quarter.

Tax charges of $2.81 million were incurred for the six months period compared to $7.88 million reported in 2020. As such, profit for the period amounted to $1.72 million relative to profit of $5.27 million for the prior year. For the quarter, 1834 posted net loss of $13.13 million versus a net loss of $775,000 in the previous year’s corresponding quarter.

The earnings per share (EPS) for the period amounted to $0.0014 (2020: $0.0044). For the quarter, LPS of $0.0108 versus an earnings per share of $0.0006. The twelve-month trailing EPS amounted to $0.06. The number of shares used in this calculation was 1,211,243,827 units. As at November 15, 2021, the stock traded at $0.92 with a corresponding P/E ratio of 16.21 times.

Balance Sheet Highlights:

The Company, as at September 30, 2021, recorded total assets of $1.66 billion, a 10% increase when compared to $1.52 billion recorded last year. The movement was attributed to an increase in ‘Investments’ to $397.34 million (2020: $272.01 million). Notably, ‘Securities purchased under resale agreements’ and ‘Investment properties’ also contributed to the increase which closed at $348.08 million (2020: $289.23 million) and $492.50 million (2020: $437.10 million) respectively.

Total Shareholders’ Equity as at September 30, 2021 closed at $1.51 billion, compared to $1.46 billion recorded for the same period in 2020. This resulted in a book value of $1.25 compared to a value of $1.21 as at September 30, 2020.


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