1834 reports 96% decline in year end net profit

July 15, 2022
1834 Investments Limited (1834)

For the year ended March 31, 2022: –

1834 Investments Limited (1834) posted revenue of $103.41 million, a 13% decrease when compared to $118.90 million reported for the comparable period in 2021. Other gains decreased by 37% to $26.57 million (2021: $42.41 million). Other losses for the quarter closed at $17.01 million (2021: $4.03 million). For the quarter, revenue fell by 39% to $40.06 million (2021: $65.41 million).

Total Expenses increased by 20% from $49.32 million in March 2021 to $59.17 million on March 31, 2022. Of total expenses, administrative expense went up by 28% to close at $22.08 million (2021: $17.29 million). Other operating expenses increased by 16% to $38.39 million (2021: $33.23 million). The company recorded an increase in impairment gain to $1.30 million (2021: $1.20 million).

Finance costs for the year ended March 31, 2022 amounted to $1.45 million compared to $956,000 reported for the comparable period of 2021. 1834 Investments inherited a share of loss from an interest in an Associate, amounting to $33.22 million, while in March 2021, they received a share of profit worth $18.14 million.

Given the inherited loss, 1834 Investments recorded a Profit before Taxation of $9.57 million relative to a $86.77 million in 2021.

Tax charges of $6.36 million were incurred for the twelve-month period compared to $5.69 million reported in 2021. 1834 Investments experienced a profit for the period of $3.21 million relative to a profit of $81.08 million for the prior year.

1834’s earnings per share (EPS) for the period of $0.0026 (2021: EPS $0.0669). For the quarter, EPS of $0.0165 was recorded versus an earnings per share of $0.0664 in March 2021. The number of shares used in this calculation was 1,211,243,827 units. As at July 14, 2022, the stock traded at $1.24.


Balance Sheet Highlights:

The Company, as at March 31, 2022, held Total Assets worth $1.85 billion, an 11% increase when compared to $1.66 billion recorded last year. The movement was primarily attributable to increases in ‘Investment properties’ which now totaled $545 million (2021: $492.50 million) and ‘Securities purchased under resale agreements’ amounted to $359.36 million (2021: $302.90 million)

Total Shareholders’ Equity as at March 31, 2022 closed at $1.512 billion, compared to $1.510 billion recorded for the same period in 2021. This resulted in a book value per share of $1.25 compared to a value of $1.25 as at March 31, 2021.


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