October 30, 2020
Margaritaville (Turks) Limited
For the Year Ended May 31, 2020:
In United States dollars (except where it is indicated otherwise):
Margaritaville Turks Limited (MTL), for the twelve months ended May 31, 2020, reported revenues of $5.94 million versus $7.59 million in the prior corresponding period. For the quarter, revenues amounted to $124,230 (2019: $2.07 million).
Cost of sales decreased by 21% for the period to $1.84 million (2019: $2.32 million), while for the quarter a 58% decrease was observed to $372,639 (2019: $879,227).
As a result, gross profit fell 22% year-on-year to total $4.11 million compared to $5.28 million reported for the comparable period last year.
Total expenses decreased by 11% for the year ended May 2020, falling to $4.04 million from $4.53 million booked the prior year. This decrease was associated with a 25%% decline in promotional expense to $56,208 compared to $75,125 reported in the previous comparable period. Furthermore, administrative expenses fell by 11% which closed at $3.69 million from $4.16 million reported in 2019. Depreciation and amortization expense reported a negligible 1% decrease, to close at $ 291,861 (2019: $293,515). For the quarter, total expenses closed at $297,291 (2019: $1.01 million).
Consequently, operating profit for the year ended declined by 90% to $72,132 (2019: $750,580). No finance cost was incurred hence profit for the year ended amounted to $72,132 (2019: $750,245). The twelve-months earnings per share was $0.001 compared to $0.011. The number of shares used in our calculations was 67,500,000. MTL closed the trading period on October 29, 2020 at US$0.15 while MTLJA closed the trading period on October 29, 2020 at J$42.60.
MTL noted, “The spread of the Coronavirus disease and the measures taken to contain the spread of the virus significantly affected the company’s operation and resulted in its temporary closure as of March. At the date of the authorisation of the financial statements, operations continued to be impacted by COVID-19. As such, management is unable to determine a reliable estimate of the financial impact of COVID-19 events on its profitability and financial position for the subsequent period.”
Balance Sheet Highlights:
As at May 31, 2020, the Company recorded total assets of $5.33 million versus $5.79 million in 2019. This represents an 8% declined primarily due to a 59% decrease in ‘Cash and bank balance’ to $31,401 (2019: $77,445) coupled with the 38% decrease in ‘Owing by related companies’ which closed at $815,457 (2019: $1.32 million).
Total Shareholders’ Equity as at May 2020 closed at $4.29 million (2019: $4.53 million), which resulted in a book value of $0.064 (2019: $0.067).
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