GWEST reports a year’s net loss of $88.11 million

Date: May 31, 2018

GWEST Corporation Limited (GWEST), for the year ended March 31, 2018 reported Total revenue  amounting to $66.39 million, a decrease of 93% when compared with the $1.01 billion booked last year. Revenue fell by 99% or $941,238 for the fourth quarter. GWEST stated that this performance was due to “to the fact that revenue from real estate sales for the financial year 2018 was Nil while revenue from real estate sales for financial year 2017 was $950M. This resulted from the fact that we have sold all the real estate that we projected to sell and are now focusing on leasing the remaining space that we now own and on building-out our medical services business.”

Cost of sales amounted to a total of $47.25 million relative to the $838.10 million reported for the same period last year. For the quarter, cost of sales decreased from $837.96 million in 2017 to $35.10 million in 2018.

As such gross profit decreased 89% or $151.60 million to a total of $19.14 million relative to the $170.74 million for the corresponding period in 2017. There was a 128% decrease in gross profit for the fourth quarter as compared to prior year.

Other gains and losses amounted to $12.62 million a significant decline of 93% from last year’s 192.24 million.

Administrative expenses jumped up by 76% to close the period at $26.70 million (2017: $15.01 million).

Other operating expenses amounted to $50.09 million, up from $36.88 million in the corresponding period for 2017. Finance cost for the period amounted to $42.05 million relative to $134.70 million, a 69% fall from the comparable period in 2017.

GWEST reported a loss before tax of $87.42 million relative to the $176.33 million reported in 2017.

Consequently, net loss for the period amounted to $88.11 million relative to a net profit $180.58 million in 2017, after a tax charge of $694,000 for the 2017 period. Net loss for the quarter amounted to $7.10 million (2017: $120.40 million).

Loss per share (LPS) for the period amounted $0.16 compared to and earnings per share of $0.49 recorded in 2017. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on March 30, 2018, at $2.33.

Balance Sheet at a glance:

As at March 31, 2018, total assets amounted to $1.66 billion, 10% more than $1.50 billion the year prior. This was as a result of increased ‘Short term deposits’ and ‘Property and equipment’ which closed $177.61 million (2017: $42 million) and $389.23 million (2017: $323.70 million) respectively. This amount was tempered by the decline in ‘Cash and bank balances’ $41.02 million less than the prior year to end at $1.35 million.

Shareholders’ Equity totaled $606.64 million (2017: $315.61 million) resulting in a book value per share of $1.25 (2017: $0.65).

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2018-05-31T16:13:14+00:00