February 16, 2021

1834 Investments Limited (1834) posted operating income of $13.70 million, a 21% decline when compared to $17.45 million reported for the comparable period in 2019. For the quarter, operating income fell by 12% to $4.21 million (2019: $4.80 million).

Other income fell by 39% to $39.79 million (2019: $65.37 million). Other income for the quarter closed at $1.52 million (2019: $1.46 million). As such, total revenue for the nine-month amounted to $53.49 million, 35% below last year’s corresponding period of $82.82 million.

Total expenses decreased by 8% from $65.18 million in 2019 to $60.27 million in 2020. Of total expense, administrative expense surged by 90% to close at $35.62 million (2019: $18.75 million), while other operating expenses decreased by 46% to $25.20 million (2019: $46.42 million).

As such, loss from operations amounted to $6.78 million relative to profit from operations of $17.64 million for the nine months ended December 30, 2019. Loss from operation for the quarter amounted to $9.40 million relative to a loss of $23.61 million for the corresponding quarter of 2019.

Finance cost for the period amounted to $607,000 compared to $1.66 million reported for the comparable period of 2019.

Loss from continuing operations before other income amounted to $7.39 million (2019: profit of $15.98 million).

Furthermore, no loss from disposal of subsidiaries was reported compared to a loss of $1.90 million in 2019. Share of profit from interest in associate, net of tax totalled $15.84 million compared to $6.43 million booked twelve months earlier.

Consequently, profit from continuing operations before taxation amounted to $8.45 million versus a profit of $20.52 million for the same period in 2019. For the quarter, loss from continuing operations before taxation closed at $4.69 million relative to a loss from operations before taxation of $24.25 million in the prior comparative quarter.

Tax charges of $7.80 million were incurred for the nine months period compared to $7.44 million reported in 2019. As such, the profit for the period amounted to $655,000 relative to profit of $13.07 million for the prior year. For the quarter, 1834 posted net loss of $4.61 million versus a net loss of $21.81 million in the previous corresponding quarter.

Total comprehensive income for the period under review closed at $25.98 versus total comprehensive income of $17.63 million recorded in the prior comparable period. While for the quarter, total comprehensive income totalled $2.43 million compared to loss of $19.04 million booked in the same quarter last year.

The earnings per share (EPS) for the period amounted to $0.0005 in comparison to a earning per share (EPS) of $0.0108 in 2019. For the quarter, LPS of $0.0038 versus a loss per share (LPS) of $0.0180. The twelve-month trailing EPS amounted to $0.023. The number of shares used in this calculation was 1,211,243,827 units. As at February 15, 2021, the stock traded at $0.92 with a corresponding P/E ratio of 39.55 times.

Balance Sheet Highlights:

The Company, as at December 31, 2020, recorded total assets of $1.48 billion, a 1% increase when compared to $1.46 billion recorded last year. The movement was attributed to increase in ‘Securities purchased under resale agreements’ which closed the period at $295.73 million (2019: $264.41 million). Also, ‘Investment properties’ contributed to the growth closing at $437.10 million (2019: $414.35 million).

Total Shareholders’ Equity as at December 31, 2020 remained the same YoY to close at $1.42 billion. This resulted in the book value remaining at $1.17 year over year.

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