February 15, 2022

1834 Investments Limited (1834) posted revenue of $19.76 million, a 31% increase when compared to $15.11 million reported for the comparable period in 2020. For the quarter, revenue went up by 44% to $6.77 million (2020: $4.71 million).

Other operating income increased by 14% to $43.58 million (2020: $38.38 million). As such, total revenue for the nine months amounted to $63.35 million, 18% above last year’s corresponding period of $53.49 million. Other operating income for the quarter closed at $31.71 (2020: $1.02 million), which led to a total revenue for the quarter of $38.48 million (2020: $5.74 million).

Total Expenses went down by 29% from $60.27 million in December 2020 to $42.51 million on December 31, 2021. Of total expenses, administrative expense went down by 46% to close at $19.10 million (2020: $35.62 million). Other operating expenses decreased by 4% to $24.12 million (2020: $25.20 million). The company recorded an increase in impairment gain of $712,000 (2020: 547,000). Operating expenses for the third quarter decreased by 11% to $13.53 million from $15.14 million booked twelve months earlier.

1834’s Profit from Operations for the third quarter was $24.95 million versus a loss of $9.40 million booked in 2020. For the nine-month period, Profit from Operations totaled $20.83 million relative to the loss of $6.78 million booked in the corresponding period in 2020.

Finance costs for the nine months ended December 31, 2021 amounted to $1.08 million compared to $607,000 reported for the comparable period of 2020. A loss from Continuing Operations before Other Income amounting to $7.38 million in 2020 bloomed into a profit of $19.76 million for the nine months ended December 31, 2021. Consequently however, 1834 Investments inherited a share of loss from an interest in an Associate net of tax, valuing $30.32 million. In 2020 they received a share of profit worth $15.84 million.

Given the inherited loss, 1834 Investments recorded a Loss before Taxation of $10.55 million relative to a profit of $8.45 million in 2020. For the quarter, loss before taxation was $15.09 million (2020: $4.69 million).

Tax charges of $6.25 million were incurred for the nine months period compared to $7.80 million reported in 2020. Despite this, 1834 Investments experienced a loss for the period of $16.81 million relative to a profit of $655,000 for the prior year. For the quarter, 1834 had a Net Loss of $20.38 million versus a net loss of $4.61 million in the previous year’s corresponding quarter.

1834 had a loss per share (LPS) for the period of $0.014 (2020: EPS $0.0005). For the quarter, LPS of $0.0168 was recorded versus a loss per share of $0.0038 in December 2020. The twelve-month trailing EPS amounted to $0.05. The number of shares used in this calculation was 1,211,243,827 units. As at February 14, 2022, the stock traded at $0.82 with a corresponding P/E ratio of 15.61 times.

Balance Sheet Highlights:

The Company, as at December 31, 2021, held Total Assets worth $1.88 billion, a 28% increase when compared to $1.48 billion recorded last year. The movement was primarily attributable to an increase in ‘Cash & cash equivalents’ to $242.66 million from $80.44 million in 2020 and ‘Investments’ which now totaled $417.57 million (2020: $277.10 million)

Total Shareholders’ Equity as at December 31, 2021 closed at $1.50 billion, compared to $1.42 billion recorded for the same period in 2020. This resulted in a book value per share of $1.24 compared to a value of $1.17 as at December 31, 2021.

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