GWEST reports a first quarter net loss of $10.76 million

August 16, 2021

GWEST Corporation Limited, for the three months ended June 30, 2021, booked total revenue amounting to $30.80 million, an increase of 25% when compared with the $24.16 million booked last year. Management noted, “revenue was positively impacted by a 46% increase in patient fees during the quarter relative to the corresponding quarter in the prior year. The increase in patient fees was mainly due to the relaxing of Covid-19 related curfew restrictions resulting in a greater movement of the people and longer opening hours at our facilities.”

Additionally, “Lease income increased by 12% over the corresponding quarter in the prior year as result of increase rental of lettable space. Negotiations are ongoing with a prospective tenant for a lease of 5,000 sq.ft. of office space. We expect to complete these negotiations during the second quarter.”

Cost of sales for the period amounted to $8.84 million relative to the $6.03 million reported for the same period last year. Consequently, gross profit increased 17% amounting to $21.24 million relative to the $18.12 million for the corresponding period in 2020.

Administrative expenses decreased by 30% to close the period at $9.98 million (2020: $14.20 million) and other operating expenses amounted to $19.20 million up 27% from $15.07 million for the corresponding period in 2020. Other gains or losses amounted $6.65 million (2020: $3.22 million)

As a result operating loss closed the period at $1.29 million versus a loss of $7.94 million booked twelve months earlier.

Finance cost for the period amounted to $9.53 million relative to $8.78 million booked for the comparable period in 2020. Interest income amounted to $60,000 (2020: nil)

There was no taxation charge for the period, as such, net loss for the period amounted to $10.76 million relative to a net loss $16.71 million in 2020. Total comprehensive loss for the quarter totalled $10.76 million relative to a loss $16.71 million in 2020.

Loss per share (LPS) for the period amounted $0.02 compared to and loss per share of $0.03 recorded in 2020. The trailing-twelve-month EPS amounted to $0.06. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on August 14, 2021, at $0.86 with a corresponding P/E of 14.82 times.

Balance Sheet at a glance: 

As at June 30, 2021, total assets amounted to $1.67 billion, 2% more than $1.63 billion the year prior. This was as a result of the increase in ‘Property and equipment’ which closed $337.19 million (2020: $229.35 million), this due to the “increase in investment related to the build-out of our surgery center and in-patient unit,” as per GWEST. However, the movement was tempered by a decrease in ‘Due from relative parties’ which totalled $54.61 million (2020: 97.46) and ‘Right of use assets’ which closed to $97.26 million (2020: $132.63 million).

Shareholders’ Equity totalled $679.48 million (2020: $651.34 million) resulting in a book value per share of $1.40 (2020: $1.34).


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