February 27, 2020
The Chairman, Ian Pasard, stated that “The financial year 2019 was a turnaround year for 138SL, the key items focused on were: full execution of the concession agreements with our key partner, the University of the West Indies, improved operational efficiency, management of the bad debt collections and growing portfolio in short term rentals.”
For the financial year 2019, revenue experienced a 30% increase from $780.74 million in FY2018 to $1.01 billion. Whilst net profit amounted to $22.97 million relative to a loss of $16.25 million. Notably, Mr. Ian Pasard stated “that the main drivers to the decrease in operating profit were an arbitration award against 138SL and Utility Costs relating to water. However, these costs were incurred in the early part of 2019.” He also commented that “the decrease in finance costs year over year was due to the reduction in interest rates because most of 138SL’s debt has variable interest rates.”
Mr. Pasard mentioned that the turnaround in revenue manifested in the fourth quarter of 2019 and continued in the first quarter of 2020 as evident in the 110% increase generated in total revenue of $463.94 million (2018: $223.09 million) for the first quarter ended December 2019. As such, the Company had a net profit of $182.86 million (2018: net loss of $43.84 million) for the three months ended December 2019. Furthermore, the Chairman noted that “the Board of Directors will be are looking to consider dividends,” due to the improved performance.
During the FY2019, the company accomplished the following:
- Improved technological platforms
- Redundancy exercise and hired more skilled positions rather than outsourcing contract workers
- Curtailed utility cost through the implementation of sustainable energy efficiency measures to result in reduced utility cost
- Summer accommodation programme
Looking ahead, 138SL anticipates growing its revenue income by 20% in 2020 using an expected occupancy rate of over 90% as well as short-term rental products.
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