February 17, 2020

1834 Investments Limited (1834) posted operating income of $17.45 million, a 20% decline when compared to $21.87 million reported for the comparable period in 2018. For the quarter, operating income fell by 29% to $4.8 million (2018: $6.73 million).

Other income increased by 76% to $65.37 million (2018: $37.16 million). Other income for the quarter closed at $1.46 million (2018: $1.36 million). As such, total revenue for the nine-month amounted to $82.82 million, 40% above last year’s corresponding period of $59.03 million.

Total expenses decreased by 32% from $96.44 million in 2018 to $65.18 million in 2019. Of total expense, administrative expense went down by 12% to close at $18.75 million (2018: $21.21 million), while other operating expenses decreased by 38% to $46.42 million (2018: $75.23 million).

As such, profit from operations amounted to $17.64 million relative to loss from operations of $37.42 million for the nine months ended December 30, 2018. Loss from operation for the quarter amounted to $23.61 million relative to a loss of $62.84 million for the corresponding quarter of 2018.

Finance cost for the period amounted to $1.66 million compared to $83,000 reported for the comparable period of 2018.

Profit from continuing operations before other income amounted to $15.98 million (2018: loss of $37.50 million).

Furthermore, Loss from disposal of subsidiaries amounted $1.90 million compared to a loss of $24.97 million in 2018. Share of profit from interest in associate, net of tax totalled $4.77 million compared to $5.51 million booked twelve months earlier.

Consequently, profit from continuing operations before taxation amounted to $18.86 million versus a loss of $56.96 million for the same period in 2018. For the quarter, loss from continuing operations before taxation closed at $24.61 million relative to a loss from operations before taxation of $85.95 million in the prior comparative quarter.

Tax charges of $5.79 million were incurred for the nine months period compared to $2.60 million reported in 2018. As such, the profit for the period amounted to $13.07 million relative to loss of $59.56 million for the prior year. For the quarter, 1834 posted net loss of $21.81 million versus a net loss of $85.24 million in the previous corresponding quarter.

Total comprehensive income for the period under review closed at $17.63 million versus total comprehensive loss of $59.91 million recorded in the prior comparable period. While for the quarter, total comprehensive loss totalled $19.04 million compared to loss of $83.48 million booked in the same quarter last year.

The earnings per share (EPS) for the period amounted to $0.011 in comparison to a loss per share (LPS) of $0.049 in 2018. For the quarter, LPS of $0.018 versus a loss per share (LPS) of $0.070. The twelve-month trailing EPS amounted to $0.065. The number of shares used in this calculation was 1,211,243,827 units. As at February 17, 2020, the stock traded at $ 1.05.

Balance Sheet Highlights:

The Company, as at December 31, 2019, recorded total assets of $1.46 billion, a decrease when compared to $1.58 billion recorded last year. The movement was attributed to decrease in ‘Assets Held for Sale’ which closed the period at nil (2018: $112.33 million). Also, ‘Cash and Cash Equivalents’ contributed to the decline closing at $91.61 million (2018: $101.40 million).

Total Shareholders’ Equity as at December 31, 2019 closed at $1.41 billion, a decrease from the $1.52 billion recorded for the same period in 2018. This resulted in a book value of $1.17 compared to a value of $1.26 as at December 31, 2018.

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