GWEST reports 31% decline in Gross Profits

Date: February 16, 2018


QWEST Corporation Limited, for the nine months ended December 31, 2017, reported total revenue booked for the nine months ended December 31, 2017 amounted to $61.58 million, a decrease of 2% when compared with the $62.79 million booked last year. Revenue fell by 11% or $2.65 million for the third quarter. GWEST stated that this performance was due to “lower sales of commercial properties that reflected the remaining units available for sale.”

Cost of sales amounted to a total of $12.16 million relative to the $133,000 million reported for the same period last year. For the quarter, cost of sales increase from $43,000 to $4.81 million. Consequently, gross profit decreased 21% or $13.23 million to a total of $49.43 million relative to the $62.66 million for the corresponding period in 2016. There was a 31% decrease in gross profit for the third quarter as compared to prior year. The company highlighted that the loss was “primarily due to higher Administrative expenses for the period that reflected charges related to our Initial Public Offering (IPO) and the repayment of short term debt.”

Administrative expenses increased by 317% to close the period at $71.40 million. For the quarter, there was an increase from $12.37 million in 2016 to $32.67 million.

Other operating expenses amounted to $28.06 million, up from $1.06 million in the corresponding period for 2016. Finance cost for the period amounted to $28.43 million relative  to $106.24 million booked in for the comparable period in 2016.

GWEST reported a loss before tax of $76.27 million relative to the $60.19 million reported in 2016.

Consequently, net loss for the period amounted to $81.02 million relative to a net profit $60.19 million in 2016, after a tax charge of $4.75 million for the 2017 period.  Net loss for the quarter amounted to $53.07 million (2016: $65.89 million).

Loss per share (LPS) for the period amounted $0.17 compared to and earnings per share of $0.12 recorded in 2016. The LPS for the quarter amounted to $0.11 relative to an EPS of $0.14 in 2016. The trailing-twelve-month LPS amounted to $0.13. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on February 15, 2018, at $2.75.

Balance Sheet at a glance:

 As at December 31, 2017, total assets amounted to $1.64 million, 39% more than $1.18 billion the year prior. The company noted that, “this was as a result of increased inventories and receivables balances generated from the introduction of new business lines which resulted in the overall increase in sales revenue.”

Shareholders’ Equity totaled $634.60 million (2016: $90.01 million) resulting in a book value per share of $1.31 (2016: $0.19).

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.