1834 reports 93% decline in year end net profits

Date: June 18, 2019

1834 Investments Limited, for the year ended March 31, 2019, revenue declined by 39% from $45.38 million for the comparable period in 2018 to $27.87 million in 2019. For the quarter, the Company generated revenue of $5.99 million (2018: $10.57 million), a 43% decline year over year.

Other operating income fell to $27.22 million (2018: $116.02 million). Consequently, total income for the period decreased by 66% to $55.09 million relative to $161.40 million for the corresponding period last year. Total loss for the quarter closed at $3.94 million versus total income of $51.49 million reported in the previous quarter in 2018.

Total expenses declined by 8%  from $107.01 million in 2018 to $116.88 million in 2018. Of total expenses, administrative expenses went down 22% to close the period at $24.36 million (2018: $31.26 million). While, other operating expenses amounted to $46.03 million (2018: $85.63 million). Total expenses for the quarter closed at $10.56 million (2018: $58.53 million).

As such, loss from operations closed at $51.92 million versus profit from operations of $44.51 million booked in the prior comparable period. Loss from operations for the quarter totalled $14.50 million compared to loss from operations of $7.05 million documented in the previous corresponding quarter.

Finance costs dropped 74% from $380,000 in 2018 to $98,000 recorded for the period under review. As such, loss from continuing operations before other income closed at $52.02 million compared to profit from continuing operations before other income amounted to $44.13 million booked in 2018.

The Company reported a ‘Gain on liquidation of subsidiaries’ of $58.79 million relative to nil the prior year and ‘Share of profit from interest in associate, net of tax’ of $7.34 million (2018: $53.04 million). Thus, ‘Profit from operations before taxation’ totalled $14.11 million relative to $97.17 million booked the prior financial year.

Tax charges of $8.56 million were incurred for the year end, compared to $15.24 million the prior year. Consequently, profit for the year end closed at $5.55 million relative to $81.93 million recorded in 2018. While, for the quarter, net profit amounted to $65.11 million compared to net loss of $7.30 million booked last year.

The earnings per share for the year amounted to $0.46 (2018: $6.76). For the quarter, the earnings per share amounted to $5.38 versus a loss per share of $0.60. The number of shares used in this calculation was 1,211,243,827 units. As at June 18, 2019, the stock traded at $1.07.

Balance Sheet Highlights:

The Company, as at March 31, 2019, recorded total assets of $1.55 billion, a decrease of 12% when compared to $1.75 billion recorded last year. The movement was attributed to a 44% and 38% decline in ‘Investments’ which closed at $290.68 million (2018: $469.55 million) and ‘Assets for sale’ closing at $95.81 million (2018: $196.65 million) respectively. This was however tempered by an increase in ‘Securities purchased under resale agreements’ which closed at $193.23 million (2018: $9.28 million).

Total Stockholders’ Equity as at March 31, 2019 closed at $1.49 billion, a 12% decline from $1.70 billion the prior year. This resulted in a book value of $1.23 compared to the value of $1.41 as at March 31, 2018.

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