GWEST reports six month net loss of $37.06 million

November 16, 2020

GWEST Corporation Limited (GWEST), for the six months ended September 2020 reported revenue of $54.83 million, a decrease of 20%, when compared with the $54.83 million booked last year. Revenue for the quarter totalled $30.98 million down 12% year over year (2019: $35.41 million). The company noted, “our reductio in revenue is mainly attributable to less client visits to the GWest facility brough on by the restriction of movements and the socio-economic decline caused by the battle against the COVID-19 pandemeic.”

Cost of sales fell 35% to total $11.97 million relative to the $18.46 million reported for the same period last year. As such gross profits declined by 15% to a total of $42.86 million in 2020 relative to the $50.45 million for the corresponding period in 2019. Gross profit for the quarter amounted to $25.05 million (2019: $23.04 million).

Administrative expenses closed the period at $64.40 million versus $68.33 million in the previous corresponding period, while other operating expenses reported nil (2019: $406,000).

Gwest explained that the reduction in operating expense was, “mainly as a result of the reduced operating hours and other cost containment measures to mitigate the impact of the COVID-19 pandemic.”

In addition, other gains were reported at $3.46 million compared to a gain of $174,000 booked same time in 2019. Finance cost reduced for the period by $5.14 million to total $18.98 million (2019: $24.12 million).

As a result, GWEST reported loss before taxation of $37.06 million relative to the $42.21 million reported in 2019. Pretax loss for the second quarter totalled $20.26 million versus a loss of $21.45 million booked for the comparable quarter of 2019.

No taxes were charged resulting in a net loss for the period of $37.06 million (2019: $42.21 million), which also serve as a comprehensive income. As for the quarter the net loss and comprehensive income closed at $20.26 million (2019: $21.45 million).

Loss per share (LPS) for the quarter amounted $0.042 (LPS: 2019: $0.044). LPS for the six month period totalled $0.076 relative to an LPS of $0.087 in 2019. The trailing twelve-month LPS amounted to $0.087. The number of shares used in the calculations is 484,848,485. GWEST last traded on November 16, 2020 at $0.72.

Balance Sheet at a glance:

As at September 30, 2020, total assets amounted to $1.60 billion, 6% less than $1.71 billion the year prior. ‘Property and equipment’ contributed to the decrease in the asset base, declining by $276.91 million to total $228.24 million (2019: $505.14 million). This was offset by  ‘Rights of use assets amounting to $123.79 million (2019: nil).

Shareholders’ Equity totalled $631.08 million (2019: $673.34 million) resulting in a book value per share of $1.30 (2019: $1.39).


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