BPOW reports 4% decrease in six months net profits

December 03, 2019

Blue Power Group Limited (BPOW), for the six months ended October 31, 2019 booked a 14% decrease in revenue to total $231.43 million compared to $270.40 million for the corresponding period in 2018. Revenue for the quarter totalled $112.75 million, 15% below last year’s corresponding quarter of $132.59 million.

BPOW highlighted, “With effect from August 1, Blue Power Group Ltd. will report on Blue Power Group results excluding the former Lumber Depot division. Blue Power Group’s revenue is derived from manufacturing activities, rental of property and provision of management services to Lumber Depot Limited. At the same time Blue Power Group has been restructured to fully carry the expenses relating to the Chairman and the Manager at Blue Power Group Ltd. which were previously accounted for in the results for the Lumber Depot division.”

Cost of sales for the period showed a decrease of 16% to $144.11 million from $172.51 million last year. This further translated into gross profit amounting to $87.32 million, a decrease of 11% when compared to $97.89 million in 2018. Gross profit for the second quarter rose 4% to close at $49.07 million (2018: $47.26 million).

Administrative expenses saw an increase of 15%, to total $53.04 million (2018: $46.17 million). Thus resulting in profit from operations of $34.28 million, 34% less than 2018’s $51.72 million. For the second quarter profit from operations saw a 26% decline to $18.40 million versus $24.94 million in 2018.

Other income, for the period totalled $5.93 million a significant increase when compared to the $446,242 recorded for the same period last year.

In addition, BPOW reported finance costs of $53,185 for the period, an 83% decline when compared to $320,137 in the year prior. Finance income rose to $18.71 million relative to $9.03 million for the corresponding period in 2018, by 107%.

Profit before tax totalled $58.86 million compared to $60.87 million in 2018 followed by tax charges of $7.28 million (2018: $7.36 million).

Net Profit for the period totalled $51.58 million, a 4% decrease compared to $53.51 million booked in 2018, while net profit for the quarter amounted to $28.19 million (2018: $18.60 million).

Profit attributable to members totalled $72.88 million for the period versus $86.78 million las year due to profit from discontinued business of $21.30 million (2018: $33.27 million).

Earnings per share (EPS) for the period totalled $0.091 (2018: $0.095). EPS for the second quarter amounted to $0.050 relative to $0.033. The twelve-month trailing EPS is $0.24. The number of share used in our calculations amounted to 564,990,000 units. BPOW’s stock price close the trading period on December 3, 2019 at $6.91.

Balance Sheet at a glance:

As at October 31, 2019, total assets amounted to $1 billion, up $33.41 million from the balance of $970.45 million as at October 31, 2018. The increase in total assets was as a result of the increase in Due to related party which closed the period at $130.71 million (2018: nil).

Shareholders’ Equity of $958.67 million was reported (2018: $838.78 million) which resulted in a book value per share of $1.70 (2018: $1.48).

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