LASF reports 10% increase in first quarter net profit

August 11, 2022
Lasco Financial Services Limited (LASF)

For the three months ended June 30, 2022

Lasco Financial Services Limited (LASF), recorded trading income of $539.99 million, this represents a decrease of 4% when compared to $561.71 million posted in 2021.

Other income decreased by 16% to $24.50 million versus $29.31 million in 2021. This resulted in overall income of $564.49 million, a contraction of 4% when compared to $591.02 million for the corresponding period in 2021.

Operating expenses amounted to $430.96 million, compared to $432.48 million booked in the year prior. Of this:

o    Administrative costs closed at $268.03 million (2021: $263.40 million) at end of June 2022.

o    Selling and promotional costs amounted to $162.92 million (2021: $169.09 million).

Consequently, due to the decrease in total income, profit from operations decreased by 16% to total $133.53 million relative to the $158.53 million booked last year.

Finance costs decreased to $26.77 million (2021: $47.74 million), resulting in a profit before tax of $106.75 million, 4% down from $110.80 million booked in the first quarter of 2021.

Taxes for the period amounted to $23.98 million (2021: $35.82 million). Net profit closed the period under review at $82.78 million, down from $74.98 million posted the same period last year.

Earnings per share amounted to $0.065 (2021 EPS: $0.06). The trailing twelve months EPS amounted to $0.245. The number of shares used in our calculations amounted to 1,280,227,726 units. LASF closed the trading period on August 10, 2022, at $2.72 with a corresponding P/E of 11.08 times.

Balance Sheet Highlights:

As at June 30, 2022, the Company’s total assets closed the period at $4.33 billion, 9% more than its value of $3.96 billion a year ago. This increase was largely due to ‘Cash and Bank Balances’ and ‘Short term Deposits’ which closed at $855.96 million (2021: $770.74 million) and $765.52 million (2021: $393.68 million), respectively. However, these were tempered by a decline in ‘Loans and other receivables’ by $61.19 million to $1.45 billion (2021: $1.51 billion).

Shareholders’ equity attributable to stockholders of the Company amounted to $2.04 billion relative to $1.78 billion booked in 2021. This translates to a book value per share of $1.6 (2021: $1.39).


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