November 4, 2022

Lasco Financial Services Limited (LASF)

For the six months ended September 30, 2022

For the six months ended September 30, 2022 Lasco Financial Services Limited (LASF), recorded trading income of $1.12 billion this represents a 4% increase from the $1.08 billion recorded in the corresponding period in 2021. Trading income for the quarter was $584.57 million (2021: $519.69 million).

Other income decreased marginally to $63.32 million versus $63.53 million in 2021. This resulted in overall income of $1.19 billion, a 4% increase compared to the $1.14 billion reported in the corresponding period in 2021.

Operating expenses were 5% higher, $900.10 million, compared to $856.83 million booked in the year prior. Of this:

•  Administrative costs closed at $592.15 million (2021: $554.63 million).
• Selling and promotional costs amounted to $307.94 million (2021: $302.19 million).

As a result of higher operating expenses profit from operations decreased by 0.1% to total $287.8 million relative to the $288.09 million booked last year.

Finance costs decreased by 41% to $54.72 million (2021: $93.35 million), resulting in a profit before tax of $233.07 million, 20% higher than the $194.74 million booked in 2021.

Taxes for the period amounted to $76.32 million (2021: $61.15 million). Net profit closed the period under review at $156.75 million, 17% higher than the $133.59 million posted the same period last year. Net profit for the quarter amounted to $73.97 million (2021: $58.61 million).

Earnings per share amounted to $0.12 (2021 EPS: $0.10). For the quarter, EPS amounted to $0.06 (2021: $0.05). The trailing twelve months EPS amounted to $0.26. The number of shares used in our calculations amounted to 1,280,227,726 units. LASF closed the trading period on November 3, 2022, at $2.84 with a corresponding P/E of  10.92 times.

Balance Sheet Highlights:

As at September 30, 2022, the Company’s total assets closed the period at $4.43 billion, 1% more than its value of $4.37 billion a year ago. This increase was largely due to a 9% increase in ‘Receivables’ which closed at $1.53 billion (2021: $1.4 billion). However, this were tempered by a 19% decline in ‘Cash and cash equivalents’ to $721.93 million (2021: $896.51 million).

Shareholders’ equity attributable to stockholders of the Company amounted to $2.12 billion relative to $1.84 billion booked in 2021. This translates to a book value per share of $1.66 (2021: $1.44).

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