GWEST reports first quarter net loss of $16.71 million

August 17, 2020

GWEST Corporation Limited, for the three months ended June 30, 2020, booked total revenue amounting to $24.16 million, a decrease of 27% when compared with the $33.14 million booked last year. Management noted that, “revenue was mainly impacted by a 54% reduction in patient fee during the quarter. The reduction in patient fees was mainly due to the COVID-19 Pandemic, which resulted in stay-at-home orders, business closures and reduced operating hours.” Moreover, “Rental and lease income increased 4% over the corresponding quarter in the prior year. During the quarter, we finalized a new lease agreement for 8000 sq. ft. of office space,” as per GWEST.

Cost of sales for the period amounted to $6.03 million relative to the $6.08 million reported for the same period last year. Consequently, gross profit decreased 33% amounting to $18.12 million relative to the $27.06 million for the corresponding period in 2019.

Total expenses decreased 19% for the period to $29.27 million (2019: $36.08 million). Of this, Administrative expenses decreased by 19% to close the period at $28.75 million (2019: $35.67 million) while Other operating expenses amounted to $521,000 up 28% from $406,000 for the corresponding period in 2019.

Finance cost for the period amounted to $8.78 million relative to $12.01 million booked for the comparable period in 2019. Management noted that this decrease was due to, “the pay-down of loan balances.”

There was no taxation charge for the period, as such, net loss for the period amounted to $16.71 million relative to a net loss $20.76 million in 2019. Total comprehensive loss for the quarter totalled $16.71 million relative to a loss $20.76 million in 2019.

Loss per share (LPS) for the period amounted $0.034 compared to and loss per share of $0.043 recorded in 2019. The trailing-twelve-month LPS amounted to $0.090. The number of shares used in the calculations is 484,848,485. GWEST closed the trading period on August 14, 2020, at $0.75.

The Company noted, “we have implemented a Tele- medicine platform which will allow customers to access our services remotely where applicable. Management has also implemented cost cutting measures in line with the reduction in business activity.” 

Notably, Management stated that, “we are in the final design stages of our Surgery Centre and In- Patient unit and expect that these will be operational by January 2021. We continue our efforts in selling and leasing of our investment properties to increase our revenues and reduce the drag on our expenses.” Moreover, “ we also continue to analyze and review our offerings and seek our joint venture opportunities and acquisitions to increase revenues and widen our service offerings where possible,” according to GWEST. 

Balance Sheet at a glance: 

As at June 30, 2020, total assets amounted to $1.63 billion, 6% less than $1.73 billion the year prior. This was as a result of the increase in ‘Property and equipment’ which closed $229.35 million (2019: $511.52 million) however tempered by an increase in ‘Right of use assets’ which totalled $132.63 million (2019: nil).

Shareholders’ Equity totalled $651.34 million (2019: $694.79 million) resulting in a book value per share of $1.34 (2019: $1.43).

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