GWEST reports year end net profit of $22.19 million

June 29, 2021

GWEST Corporation Limited (GWEST) for the year ended March 31, 2021, reported total revenue amounting to $113.10 million, a decrease of 12% when compared with the $129.10 million booked last year. Revenue for the fourth quarter amounted to $25.78 million (2020: $27.27 million).

Cost of sales amounted to a total of $35.43 million relative to the $35.61 million reported last year.

Consequently, gross profit for the year decreased by 17% to a total of $77.67 million relative to the $93.49 million in 2020. Gross profit for the fourth quarter amounted to $9.02 million compared to a gross profit of $16.48 million the for the corresponding period.

There was an decrease in other income from $13.02 million in 2020 to $5.05 million in 2021.

Administrative expenses decreased by 19% to $54.92 million (2020: $68.17 million). In addition, other operating expenses amounted to $82.03 million relative to $97.76 million in 2020. Finance costs decreased by 18% to $37.11 million versus $45.41 million booked in 2020. Other gains for the year amounted to $94.26 million, an 85% increase when compared to the $50.93 million documented in 2020.

GWEST reported an operating profit before taxation of $2.92 million relative to operating loss of $53.90 million reported in 2020. Operating profit for the quarter stood at $53.02 million compared to an operating profit of $9.25 million twelve months earlier.

Consequently, after a tax credit of $19.26 million (2020: $6.40 million), GWEST recorded a net profit of $22.19 million relative to a net loss of $47.50 million booked in the prior year. Net profit for the quarter amounted to $72.28 million versus a net profit of $15.65 million booked in 2020.

GWEST reported a comprehensive income of $22.19 million compared to a comprehensive loss of $47.50 million booked last year.

Earnings per share (EPS) for the year end amounted to $0.046 (2020 LPS: $0.098). The earnings per share for the quarter amounted to $0.15 relative to an EPS of $0.03 in the corresponding quarter of 2020. The number of shares used in our calculations is 484,848,485. GWEST stock price closed the trading period at a price of $0.85 on June 28, 2021, with a corresponding P/E of 18.57 times.

Balance Sheet at a glance:

As at March 31, 2021, total assets amounted to $1.60 billion, 6% less than $1.70 billion the year prior. This was mainly due to a 38% decrease in ‘Receivables’ which closed at $153.56 million (2020: $249.44 million). ‘Right of use assets’ and ‘Owed by related parties’ also contributed to the decrease by closing at $106.11 million (2020: $141.48 million) and $54.32 million (2020: $77.29 million), reflecting a 25% and 30% decline, respectively.

Shareholders’ Equity totalled $690.24 million (2020: $668.05 million) resulting in a book value per share of $1.42 (2020: $1.38),


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