November 20, 2020
Stanley Motta Limited (SML) for the nine months ended September 30, 2020, booked a 10% increase in revenue to total $344 million compared to $312.44 million for the same period in 2019. For the third quarter revenue increased 11% to $117.82 million in 2020 compared to $106.24 million the previous year. The company noted, “these increases are mainly attributable to the devaluation of the Jamaica dollar which moved from an average of J$136.69:1US$ as at 30th September 2019 to J$143.95:1US$ as at 30th September 2020.”
Administrative expenses amounted to $163.17 million (2019: $109.94 million), while other operating income totalled $5.27 million (2019: $747,000). SML noted that the increase in administrative expenses was due to, “a significant FX loss of J$48.74M arising from the evaluation of our DBJ loan, SEZ fees, and repairs & maintenance and additional requirements based on our response to COVID 19.”
This translated into operating profit declining to $186.09 million when compared to last period’s $203.25 million. For the quarter, operating profit went up by 8% to close the period at $67.95 million (2019: $62.95 million).
Finance costs of $32.66 million (2019: 34.81 million) was recorded for the period. For the quarter, finance cost amounted to $11.07 million (2019: $11.52 million).
As such, profit before tax fell to $153.43 million for the period ended September 30, 2020 relative to $168.44 million in 2019. As for the quarter, profit before tax closed the period at $56.88 million versus $51.43 million in the prior corresponding quarter.
Net profit for the period totalled $148.18 million (2019: $165.49 billion) after incurring taxes of $5.24 million (2019: $2.95 million). While for the quarter, net profit of $55.15 million was recorded (2019: $49.66 million).
Total comprehensive income of $224.06 million (2019: $192.53 million) while for the quarter, SML reported total comprehensive income of $80.79 million in 2020 relative to $76.69 million in 2019.
Earnings per share (EPS) for the period totalled $0.20 (2019: $0.22). EPS for the third quarter amounted to $0.07 (2019: $0.07). The twelve months trailing EPS amounted to $0.35.The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on November 20, 2020 at $5.65, with a corresponding P/E of $16.25 times.
The company stated, “We expect little fluctuations in our results through to the end of the financial year, based around earning rent in US$, continuing with close to 100% occupancy and maintaining the status quo until year end.”
Balance Sheet at a glance:
As at September 30, 2020, total assets amounted to $5.08 billion, up from the balance of $4.87 billion in 2019. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to $4.89 billion in 2020 from $4.75 billion in 2019.
Shareholders’ Equity of $4.18 billion was reported (2019: $3.99 billion) which resulted in a book value per share of $5.52 (2019: $5.27).
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