July 15, 2020
GWEST Corporation Limited (GWEST) for the year ended March 31, 2020, reported total revenue amounting to $129.10 million, a decrease of 1% when compared with the $129.96 million booked last year. Revenue for the fourth quarter amounted to $27.27 million (2019: $39.88 million).
Cost of sales amounted to a total of $35.61 million relative to the $48.18 million reported last year.
Consequently, gross profit for the year increased by 14% to a total of $93.49 million relative to the $81.78 million in 2019. Gross profit for the fourth quarter amounted to $16.48 million compared to a gross profit of $23.04 million the for the corresponding period.
There was an increase in interest income from $83,000 in 2019 to $13.02 million in 2020.
Administrative expenses decreased by 1% to $68.17 million (2019: $68.61 million). In addition, other operating expenses amounted to $97.76 million relative to $128.39 million in 2019. Finance costs increased by 45% to $45.41 million versus $31.27 million booked in 2019. Other gains for the year amounted to $50.93 million, a gross increase when compared to the $1.98 million documented in 2019.
GWEST reported an operating loss before taxation of $53.90 million relative to operating loss of $144.43 million reported in 2019. Operating profit for the quarter stood at $9.25 million compared to an operating loss of $32.18 million twelve months earlier.
Consequently, after taxation of $6.40 million (2019: $8.55 million), GWEST recorded a net loss of $47.50 million relative to a net loss of $135.88 million booked in the prior year. Net profit for the quarter amounted to $15.66 million versus a net loss of $23.62 million. GWEST reported a comprehensive loss of $47.50 million compared to a comprehensive loss of $135.88 million booked last year. While for the quarter, the Company booked a comprehensive income of $15.66 million relative to a comprehensive loss of $23.62 million last year.
Loss per share (LPS) for the year end amounted to $0.098 (2019 LPS: $0.28). The earnings per share for the quarter amounted to $0.03 relative to an LPS of $0.05 in the corresponding quarter of 2019. The number of shares used in our calculations is 484,848,485. GWEST stock price closed the trading period at a price of $0.89 on July 14, 2020.
Balance Sheet at a glance:
As at March 31, 2020, total assets amounted to $1.70 billion, 11% more than $1.54 billion the year prior. This was mainly due to a 121% increase in ‘Receivables’ which closed at $249.44 million (2019: $112.70 million) which was tempered by a 41% decrease in ‘Property and Equipment’ to $230.96 million (2019: $389.98 million).
Shareholders’ Equity totalled $668.05 million (2019: $715.56 million) resulting in a book value per share of $1.38 (2019: $1.48)
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