1834 reports year end net profits of $40.59 million

July 15, 2020

1834 Investments Limited, for the year ended March 31, 2020, reported a 16% decline in revenue from $27.87 million for the comparable period in 2019 to $23.32 million in 2020. For the quarter, the Company generated revenue of $5.87 million (2019: $6 million), a 2% decline year over year. Fair value gain on investment properties amounted to $22.75 million (2019: nil) for the year ended March 31, 2020.

Other operating income rose to $49.46 million (2019: $27.22 million). Consequently, total income for the period increased by 73% to $95.52 million relative to $55.09 million for the corresponding period last year. Total income for the quarter closed at $12.70 million versus total loss of $3.94 million reported in the corresponding quarter in 2019.

Total expenses declined by 17% from $107.01 million in 2019 to $88.29 million in 2020. Of total expenses, administrative expenses went down 19% to close the period at $19.62 million (2019: $24.36 million). While, other operating expenses amounted to $63.57 million (2019: $46.03 million).  Impairment loss amounted to $5.10 million ( 2019: $5.21 million). There were no fair value loss on investment properties (2019: $31.41 million). Total expenses for the quarter closed at $23.12 million (2019: $10.56 million).

As such, profit from operations closed at $7.23 million versus loss from operations of $51.92 million booked in the prior comparable period. Loss from operations for the quarter totalled $10.41 million compared to loss from operations of $14.50 million documented in the previous corresponding quarter.

Finance costs rose 281% from $98,000 in 2019 to $373,000 recorded for the period under review. As such, profit from continuing operations before other income closed at $6.86 million compared to loss from continuing operations before other income amounted to $52.02 million booked in 2019.

The Company reported a ‘Loss on liquidation of subsidiaries’ of $1.90 million relative to a ‘Gain on liquidation of subsidiaries’ $58.79 million the prior year and ‘Share of profit from interest in associate, net of tax’ of $46.56 million (2019: $9.91 million). Thus, profit from operations before taxation totalled $51.52 million relative to $16.68 million booked the prior financial year.

Tax charges of $10.93 million were incurred for the year end, compared to $11.14 million the prior year. Consequently, profit for the year end closed at $40.59 million relative to $5.55 million recorded in 2019. While, for the quarter, net profit amounted to $27.52 million compared to net loss of $65.11 million booked last year.

The earnings per share for the year amounted to 3.35 cents (2019: 0.46 cent). For the quarter, the earnings per share amounted to 2.27 cents versus an EPS of 5.38 cents. The number of shares used in this calculation was 1,211,243,827 units. As at July 14, 2020, the stock traded at $0.95.

Balance Sheet Highlights:

The Company, as at March 31, 2020, recorded total assets of $1.50 billion, a decrease of 3% when compared to $1.55 billion recorded last year. The movement was attributed to a 100% decline in ‘Pension fund receivable’ and ‘Assets held for sale’ closing at nil (2019: $81.79 million ) and nil (2019: $95.81 million), respectively. This was however tempered by an increase in ‘Securities purchased under resale agreements’ which closed at $269.28 million (2019: $193.23 million).

Total Stockholders’ Equity as at March 31, 2020 closed at $1.44 billion, a 4% decline from $1.49 billion the prior year. This resulted in a book value of $1.19 compared to the value of $1.23 as at March 31, 2019.


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