GWEST reports $63.15 million net loss for the nine months ended December 2019

February 14, 2020

GWEST Corporation Limited (GWEST), for the nine months ended December 31, 2019 booked Total revenue of $101.83 million, an increase of 13% when compared with the $90.08 million booked last year. Revenue rose by 2% or $535,000 for the third quarter, amounting to $32.92 million (2018: $32.38 million). The company highlighted that “Our steady revenue increase is attributable to our Urgent Care which is now accredited and is able to accept all major health cards. We expect to see a continued and steady growth in our revenues during the ensuing months.”

Cost of sales amounted to a total of $24.81 million relative to the $31.33 million reported for the same period last year. For the quarter, cost of sales declined from $9.64 million to $6.35 million.

Consequently, gross profit increased 31% or $18.27 million to a total of $77.01 million relative to the $58.75 million for the corresponding period in 2018. There was a 17% growth in gross profit for the third quarter to amount to $26.57 million compared to $22.74 million the prior year.

Administrative expenses declined by 29% to close the period at $102.29 million (2018: $144.59 million). For the quarter, there was a decrease from $44.69 million in 2018 to $34.02 million in 2019.

Other operating expenses amounted to $406,000, down from $1.88 million in the corresponding period for 2018. Finance cost for the period amounted to $37.57 million relative to $26.24 million booked in for the comparable period in 2018.

No Taxes were charged for the period. As such, net loss amounted to $63.15 million relative to the loss of $112.25 million reported in 2018. Net loss for the quarter amounted to $20.98 million (2018 Loss of: $28.93 million).

Loss per share (LPS) for the period amounted to $0.13 compared to and LPS of $0.23 recorded in 2018. The LPS for the quarter amounted to $0.04 relative to an LPS of $0.06 in 2018. The trailing-twelve-month LPS amounted to $0.18. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on February 14, 2020, at $1.00.

GWEST stated, “The outlook for the future continues to remain positive especially in the area of new rentals in our property. Our prime location has resulted in an increased in visitor traffic and enquires for our office spaces. We, therefore, expect to see an increase in occupancy level in the upcoming periods as indicated by ongoing contract negotiations with committed parities.”

Balance Sheet at a glance:

As at December 31, 2019, total assets amounted to $1.71 million, 9% more than $1.57 billion the year prior. This was due to a 24% increase in ‘Due from related parties’ which closed at $141.67 million (2018: $114.13 million). ‘Receivables increased 21% to total $120.11 million (2018: $98.94 million). Furthermore, ‘Property and equipment’ increased by 26% to close the period at $498.91 million relative to $395.26 million reported in 2018.

Shareholders’ Equity totaled $652.41 million (2018: $744.39 million) resulting in a book value per share of $1.35 (2018: $1.54).


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