November 28, 2023
GWEST Corporation Limited (GWEST) for the six months ended September 30, 2023, reported a 17% increase in Revenue totalling $101.72 million compared to $87.13 million in the corresponding period last year. Revenue for the second quarter had a 20% increase to close at $52.43 million compared to $43.70 million for the comparable quarter of 2022. Management noted, “Revenue was mainly impacted by patient fees. The increase in patient fees was mainly due to increase business activity and increased flow from the surgery centre facilities. Also, Lease income declined as a result of the sale of investment property in the last year.”
Cost of Sales amounted to $78.02 million (2022: $58.27 million), this represents an increase of 34% year over year. Consequently, gross profit decreased by 18% to $23.71 million compared to $28.87 million for the six months ended September 30, 2022. The company booked gross profit of $9.44 million for the second quarter versus $14.79 million reported for the similar quarter of 2022.
Other gains or losses amounted to $318,000 (2022: nil), while Administrative Expenses increased by 41% from $27.06 million in 2022 to $38.12 million in the period under review. As a result, operating loss for the six months ended September 30, 2023 amounted to $14.09 million, relative to operating profit of $1.81 million reported in 2022.
Finance Costs totalled $15.04 million, a 29% decrease from the corresponding period last year. (2022: $21.33 million).
Loss before taxation for the six months ended September 30, 2023, increased to $29.13 million (2022: $19.52 million).
There were no taxes recorded in either period. As such, net loss for the six months amounted to $29.13 million, a 49% increase from the $19.52 million loss reported in 2022. For the second quarter, net loss was $17.10 million (2022: loss of $8.89 million).
Consequently, Loss Per Share for the six months amounted to $0.06 (2022: LPS: $0.04), while Loss Per Share for the quarter totalled $0.035 (2022: LPS: $0.018). The twelve-month trailing LPS was $0.096 and the number of shares used in these calculations was 484,848,485.
Notably, GWEST’s stock price closed the trading period on November 28, 2023, at a price of $1.01.
Balance Sheet Highlights
The company’s assets totalled $1.57 billion (2022: $1.62 billion). The movement in total assets was as a result of ‘Investment property’ decreasing 18% to close at $677.83 million, ‘Due to related parties’ declining 77% to close at $11.88 million, while ‘Rights of use assets’ increased by 252% to close at $186.84 million.
Shareholder’s equity was $687.44 million (2022: $694.88 million), representing a book value per share of $1.42 (2022: $1.43).
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