GWEST reports year end net loss of $144.43 million

Date: July 2, 2019

GWEST Corporation Limited (GWEST) for the year ended March 31, 2019, reported total revenue amounting to $129.96 million, an increase of 96% when compared with the $66.39 million booked last year. Revenue for the fourth quarter amounted to $39.88 million (2018: $4.81 million).

Cost of sales amounted to a total of $48.18 million relative to the $47.25 million reported last year.

Consequently, gross profit for the year increased by 327% or $62.65 million to a total of $81.78 million relative to the $19.14 million in 2018. Gross profit for the fourth quarter amounted to $23.04 million compared to a gross loss of $30.29 million the for the corresponding period.

Administrative expenses increased by 157% to $68.61 million (2018: $26.70 million). For the quarter, there was an increase from $44.70 million to $75.98 million. In addition, other operating expenses amounted to $128.39 million relative to $50.09 million in 2018. Finance costs decreased by 26% to $31.27 million versus $42.05 million booked in 2018. Other gains for the year amounted to $1.98 million, a decline when compared to the $12.62 million documented in 2018.

GWEST reported an operating loss before taxation of $144.43 million relative to the $87.42 million reported in 2018. Operating loss for the quarter stood at $32.18 million compared to $11.15 million twelve months earlier.

Consequently, after taxation of $8.55 million (2018: $694,000), GWEST recorded a net loss of $135.88 million relative to a net loss of $88.11 million booked in the prior year. Net loss for the quarter amounted to $23.62 million versus a net loss of $7.10 million.

Loss per share (LPS) for the year end amounted to $0.28 (2018: $0.18). The LPS for the quarter amounted to $0.05 relative to an LPS of $0.01 in the corresponding quarter of 2018. The number of shares used in our calculations is 484,848,485. GWEST stock price closed the trading period at a price of $1.21 on July 01, 2019.

Balance Sheet at a glance:

 As at March 31, 2019, total assets amounted to $1.54 billion, 7% less than $1.66 billion the year prior. This was due to a 75% decrease in ‘Short term deposits’ which closed at $44.76 million (2018: $177.61 million).

Shareholders’ Equity totaled $715.56 million (2018: $606.64 million) resulting in a book value per share of $1.47 (2018: $1.25).

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