November 17, 2020

1834 Investments Limited (1834) posted revenue of $9.49 million, a 25% decline when compared to $12.65 million reported for the comparable period in 2019. For the quarter, revenue went down by 34% to $4.58 million (2019: $6.98 million).

Other operating income increased by 40% to $38.26 million (2019: $63.91 million). As such, total revenue for the six months amounted to $47.75 million, 38% below last year’s corresponding period of $76.56 million. Other operating income for the quarter closed at $13.49 million (2019: $37.79 million), which led to a total income of $18.07 million (2019: $44.77 million).

Total expenses went up by 28% from $35.30 million in 2019 to $45.13 million in 2020. Of total expenses, administrative expense went up by 58% to close at $28.29 million (2019: $17.95 million), while other operating expenses increased less than 1% to $17.39 million (2019: $17.36 million). The company recorded a decrease in impairment loss of $547,000 (2019: nil).

Operating expenses for the second quarter increased by 5% to $23.11 million from $21.98 million booked twelve months earlier. As a result, loss from operations closed the quarter at $5.04 million versus a profit of $22.79 million booked in 2019. Profit from operations reduced by 94% from $41.26 million in 2019 to $2.62 million for the six months ended September 30, 2020. Finance cost for the period amounted to $388,000 compared to $1.45 million reported for the comparable period of 2019. Share of profit from interest in associate net of tax, totalled $10.91 million (2019: $4.96 million).

Consequently, profit from operations before taxation reduced by 71% year over year to $13.15 million (2019: $44.76 million). For the quarter, profit from operations before taxation closed at $3.65 million relative to $25.03 million in the prior year’s comparable quarter.

Tax charges of $7.88 million were incurred for the six months period compared to $9.88 million reported in 2019. As such, profit for the period amounted to $5.27 million relative to profit of $34.88 million for the prior year. For the quarter, 1834 posted net loss of $775,000 million versus a net profit of $16.54 million in the previous year’s corresponding quarter.

The earnings per share (EPS) for the period amounted to $0.0044 (2019: $0.029). For the quarter, LPS of $0.0006 versus an earnings per share of $0.0137. The twelve-month trailing EPS amounted to $0.009. The number of shares used in this calculation was 1,211,243,827 units. As at November 17, 2020, the stock traded at $0.97 with a corresponding P/E ratio of 107.02 times.

Balance Sheet Highlights:

The Company, as at September 30, 2020, recorded total assets of $1.52 billion, a 4% decline when compared to $1.57 billion recorded last year. The movement was attributed to a decrease in ‘Cash and cash equivalents’ to $105.21 million (2019: $203.10 million). Notably, ‘Investment’ also contributed to the decrease which closed at $272.01 million (2019: $330.13 million). The downward movement was however tempered by an increase in ‘Securities purchased under resale agreements’ which closed at $289.23 million (2019: $199.21 million).

Total Shareholders’ Equity as at September 30, 2020 closed at $1.46 billion, compared to $1.43 billion recorded for the same period in 2019. This resulted in a book value of $1.21 compared to a value of $1.18 as at September 30, 2019.

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