1834 reports a 67% decrease in three months net profit

August 18, 2020

Revenue for the first quarter of the 2020 financial year declined by 13% to $4.91 million (2019: $5.67 million).

Other operating income decreased in the first quarter of 2020 to $24.77 million. This compares to $26.12 million for prior year’s period, representing a decrease of 5% year over year.

As a result, total revenues decreased by 7% to $29.68 million for the 3-month period in review. This compares to the prior year’s amount of $31.79 million.

The Company’s year on year growth in total expenses amounted to 65%. This was attributed to a 159% increase in administration expenses to $11.59 million (2019: $4.47 million), and an 18% increase in other operating expenses to total $10.43 million relative to $8.85 million booked in 2019.

Consequently, profit from operations for the first quarter of 2020 fell to $7.66 million from the prior year’s figure of $18.47 million, representing a 59% uptick year over.

There was a drastic decline in finance costs in the first quarter of 2020 to $206,000 from $1.21 million in 2019.

Share of profit from interest in associate, net of tax of $2.04 million in the first quarter of 2020, compared to $2.48 million reported for the prior year’s corresponding quarter.

Consequently, profit from operations before taxation amounted to $9.49 million for the first three months ended June 30, 2020 relative to $19.73 million recorded for the corresponding period in 2019.

Taxation of $3.45 million was charged relative to $1.39 million reported in 2019. Following this, 1834 booked first quarter profit of $6.04 million relative to $18.35 million reported in 2019 a 67% contraction year over year.

The earnings per share for the three month period amounted to $0.0050 versus $0.0151. The twelve months trailing loss per share is $0.02, and the number of shares used in this calculation was 1,211,243,827 units. 1834 stock price closed the trading period on August 17, 2020 at $0.98.

 Balance Sheet Highlights:

The company, as at June 30, 2020, recorded total assets of $1.50 billion, a decrease of 3% when compared to $1.56 billion as at June 30, 2019.The Company reported nil as at June 30, 2020 for ‘Assets held for Sale’ compared to $95.81 million report for the same period in 2019. ‘Pension fund receivable’ closed at nil compared to $39.84 million as at June 30, 2019. C

Total Stockholders’ equity as at June 30, 2020 closed at $1.45 billion, down 4% from $1.51 billion last year. This resulted in a book value of $1.20 compared to $1.25 billion as at June 30, 2020.



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