May 16, 2022
For the nine months ended March 31, 2022, SSL Venture Capital Jamaica Limited (SSLVC) earned $0 of Revenue (2021: $19.33 million). SSLVC reported no cost of sales (2021: $19.14 million) and consequently no Gross Profit for the period under review (2021: $194,410).
SSLVC reported ‘Other Operating Income’ of $51.83 million for the nine months period ended March 31, 2022 (2021: 130,351).
Administrative expenses were $33.66 million (2021: $43.97 million).
The venture capital company reported an Operating Income of $18.17 million versus a loss of $43.64 million in 2021. However, on a quarterly basis, SSLVC experienced an Operating Loss of $11.46 million. The company had finance costs of $1.13 million for the period (2021: $6.38 million).
Profit before taxation amounted to $17.04 million versus a Loss before Taxation of $50.02 million recorded twelve months earlier.
After a tax charge of $3.24 million (2021: tax credit $6.10 million), SSLVC reported a nine-months Net Profit of $13.80 million versus a loss of $43.92 million reported in 2021. On a quarterly basis, the company had a Net Loss of $11.28 million compared to a net loss of $8.99 million documented in Q3 of 2021.
Net Profit attributable to shareholders closed at $11.32 million compared to a Net Loss attributable to shareholders of $39.07 million. While for the quarter, Net Loss attributable to shareholders totalled $8.90 million versus a net loss attributable to shareholders of $8.44 million booked twelve months earlier.
Based on earnings for the period, SSLVC outputs an earnings per share (EPS) of $0.03. In the period prior, SSLVC had a loss per share of -$0.10. For the quarter, LPS amounted to $0.02 (2021: LPS of $0.02). The trailing twelve- months earnings per share was $0.52. The number of shares used in our calculations is 400,000,000. As at May 13, 2022, SSLVC stock price closed the trading period at a price of $1.65, with a corresponding P/E ratio of 3.15 times.
On the 31st of January 2022, the company advised the market that it had received an offer for the purchase of 100% of the issued share capital from Micro Financing Solutions at a price of $0.0948 per share. In their latest quarterly report, the board of directors of SSLVC said, “The Board and Executive Management took a decision to sell the company based on the company’s inability to generate revenues. Currently, an offer was received and addressed to our Shareholders from Micro-Financing Solutions Acquisitions Limited and the Directors are taking the necessary steps to prepare the required Directors’ Circular for regulatory approval and publication.”
Balance sheet at a glance:
As at March 31, 2022, Total Assets amounted to $20.11 million, 83% less than the $118.64 million reported in Q3 of 2021. This decrease was mainly due to decreases in ‘Deferred Tax Asset’ and ‘Receivables’ which closed at nil (2021: $53.49 million) and $4.87 million ($48.51 million), respectively.
As at March 31, 2022, SSLVC reported a Shareholders’ Deficit of $37.13 million relative to Shareholders’ Deficit $246.44 million recorded in the corresponding period last year. This outputs a shareholders’ deficit per share of $0.09 (2021: $0.62).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
