November 16, 2022
GWEST Corporation Limited (GWEST), for the six months ended September 30, 2022 reported revenue of $87.13 million (2021: $72.96 million), an increase of 19% year over year. For the quarter, it totalled $43.70 million (2021: $41.97 million), a 4% 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.”
Cost of sales remained steady at $17.68 million year over year. Notwithstanding, gross profit increased by 26% to $69.45 million (2021: $55.28 million). For the quarter, gross profit amounted to $34.86 million (2021: $33.13 million).
Administrative expenses increased 11% to $23.67 million (2021: $21.26 million). Other operating expenses increased 12% to $43.97 million (2021: $39.29 million). Management noted that these increases were “mainly from the impact of inflation on utilities and other expenses.”
There were no other gains for the period (2021: $6.65 million). Finance cost amounted to $21.33 million (2021: $19.48 million).
As a result, GWEST reported loss before taxation of $19.52 million (2021: $18.10 million). For the quarter, loss before taxation totalled $8.89 million (2021: loss before taxation of $7.17 million).
No taxes were charged resulting in a net loss for the period of $19.52 million (2021: net loss of $18.10 million). For the quarter, net loss closed at $8.89 million (2021: $7.16 million).
Loss per share (LPS) for the period amounted to $0.04 (2021: $0.037). For the quarter, LPS totalled $0.018 (2021: $0.015). The trailing twelve-month earnings per share amounted to $0.047. The number of shares used in the calculations is 484,848,485. GWEST last traded on November 15, 2022 at $1.03 with a corresponding P/E ratio of 21.96 times.
GWEST advised that they signed on to the Government Code Care public private partnership program at the end of the quarter, which will see elective surgeries being completed at private facilities. They further advised that “this will start in the third quarter and should result in an improvement in revenue from our surgery centre.”
Balance Sheet at a glance:
As at September 30, 2022, total assets amounted to $1.62 billion (2021: $1.67 billion), 3% less year over year. This downward movement was due to the 14% decline in ‘Investment Property’ to $821.78 million (2021: $952.72 million).
Shareholders’ Equity increased 3% to $694.88 million (2021: $672.14 million) resulting in a book value per share of $1.43 (2021: $1.39).
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