GWEST reports a first quarter net loss of $10.69 million

August 11, 2022

GWEST Corporation Limited, for the three months ended June 30, 2022, booked total revenue amounting to $43.41 million, an increase of 44% when compared with the $30.80 million booked last year. Management noted that revenue was mainly impacted by a 77% increase in patient fees during the quarter, which was mainly due to increase business activity and opening of the surgery Centre Facilities.

Additionally, “rental and lease income increased by 21% over the corresponding quarter in the prior year this increase due to increase lease of space.”

Direct Cost for the period remained at $8.84 million year over year. Consequently, gross profit increased 63% amounting to $34.57 million relative to the $21.24 million for the corresponding period in 2021.

Administrative expenses increased by 21% to close the period at $12.09 million (2021: $9.98 million), while other operating expenses amounted to $24.80 million up 29% from $19.20 million for the corresponding period in 2021. Management noted that this increase was due to start up operating cost of the newly opened surgery center. Other gains or losses amounted $24,000 (2021: $6.65 million)

As a result, operating loss closed the period at $2.29 million versus a loss of $1.29 million booked twelve months earlier.

Finance cost for the period amounted to $8.40 million relative to $9.53 million booked for the comparable period in 2021. Interest expense amounted to $3,000 (2021: interest income of $60,000)

There was no taxation charge for the period, as such, net loss for the period amounted to $10.69 million relative to a net loss of $10.76 million in 2021. Total comprehensive loss for the quarter totalled $10.69 million relative to a loss of $10.76 million in 2021.

Loss per share (LPS) for the period remained at $0.02 year over year. The trailing-twelve-month EPS amounted to $0.05. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on August 14, 2022, at $1.00 with a corresponding P/E of 20.01 times.

Balance Sheet at a glance:

As at June 30, 2022, total assets remained at $1.67 billion year over year. This was mainly because of the 51% increase in ‘Property and equipment’ which closed $508.73 million (2021: $337.19 million), 10% decline in ‘Investment Property’ which totalled $856.34 million (2021: 952.72 million) and 36% decline in ‘Right of use assets’ which closed to $61.90 million (2021: $97.26 million).

Shareholders’ Equity totalled $703.72 million (2021: $679.48 million) resulting in a book value per share of $1.45 (2021: $1.40).


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