February 16, 2023
GWEST Corporation Limited (GWEST)
For the nine months ended December 31, 2022:
GWEST Corporation Limited (GWEST), for the nine months ended December 31, 2022 reported revenue of $147.06 million (2021: $108.67 million), an increase of 35% year over year. For the quarter, it totalled $60.22 million (2021: $36.72 million), a 64% increase year over year. Management noted that the upward movement was “mainly attributable to the increase in income from patient fees and increase in lease income. Patient fees increased by 109% for the quarter and 50% for the year to date as a result of increased utilization of our Ambulatory Surgery and In-Patient facility and increased patient count in our Urgent Care facility.”
Cost of sales remained steady at $26.53 million year over year. Notwithstanding, gross profit increased by 47% to $120.53 million (2021: $82.14 million). For the quarter, gross profit amounted to $51.38 million (2021: $27.88 million).
Administrative expenses increased 111% to $30.10 million (2021: $14.26 million). Other operating expenses increased 13% to $85.62 million (2021: $75.69 million).
The company reported an operating income of $5.24 million (2021: $1.32 million). Operating profit for the quarter amounted to $3.45 million compared to an operating loss of $16,000, twelve months prior.
Finance costs for the nine-month period were $31.50 million (2021: $30.52 million). For the quarter finance costs amounted to $10.16 million (2021: $11.04 million). As a result, GWEST reported loss before taxation of $26.24 million (2021: $29.20 million). For the quarter, loss before taxation totalled $6.71 million (2021: loss before taxation of $11.05 million).
No taxes were charged resulting in a net loss for the period of $26.24 million (2021: net loss of $29.20 million). For the quarter, net loss closed at $6.71 million (2021: $11.05 million).
Loss per share (LPS) for the period amounted to $0.05 (2021: $0.06). For the quarter, LPS totalled $0.01 (2021: $0.02). The trailing twelve-month earnings per share amounted to $0.056. The number of shares used in the calculations is 484,848,485. GWEST last traded on February 15, 2022 at $1.03 with a corresponding P/E ratio of 18.41 times.
GWEST advised that, “during the quarter we signed the Code Care contact with the Ministry of Health and Wellness (MOHW) Project Code Care is an initiative of the MOHW to further improve wait times for elective surgeries in the public health system by partnering with private medical facilities and health professionals to facilitate up to 1000 elective surgeries for patients who cannot be accommodated in public hospitals.”
Balance Sheet at a glance:
As at December 31, 2022, total assets amounted to $1.54 billion (2021: $1.64 billion), 6% less year over year. This downward movement was due to the 19% decline in ‘Investment Property’ to $769.88 million (2021: $952.72 million).
Shareholders’ Equity increased 4% to $688.17 million (2021: $661.04 million) resulting in a book value per share of $1.42 (2021: $1.36).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
