GWEST reports year end net loss of $47.50 million

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)


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.