June 17, 2021
Lasco Financial Services Limited (LASF), recorded trading income of $2.22 billion, this represents a reduction of 8% when compared to $2.40 billion posted at the end of 2020 while trading income for the fourth quarter amounted to $543.15 million (2020: $587.89 million).
Other income decreased to $75.09 million versus $102.87 million in 2020. This resulted in overall income of $2.29 billion, a reduction of 9% when compared to $2.51 billion for the corresponding period in 2020. For the fourth quarter, total income closed at $605.21 million (2020: $579.23 million).
Operating expenses amounted to $1.85 billion, 19% less than the $2.28 billion reported the year prior. Of this:
- Administrative costs closed at $1.079 billion (2020: $1.082 million) at end of March 2021.
- Selling and promotional costs amounted to $765.82 million (2020: $1.19 billion) at the end of the 2021 financial year.
Consequently, due to the decrease in total expenses, profit from operations increased by 94% to total $447.43 million relative to the $230.31 million booked last year. As for the quarter, LASF booked a profit from operations of $56.97 million relative a loss of $109.90 million recorded at the end of 2020.
Finance costs decreased to $187.05 million (2020: $208.35 million), resulting in a profit before tax of $260.38 million relative to the $21.97 million booked at the end 2020. For the quarter, profit before tax closed at $10.88 million relative to a loss of $170.19 million documented twelve months earlier.
Net profit closed the period under review at $156.75 million versus a loss of $56.92 million posted the same period last year. Taxes for the period amounted to $103.63 million (2020: $78.89 million). Net profit for the quarter amounted to $2.84 million relative to 2020 fourth quarter loss of $133.85 million.
Earnings per share amounted to $0.12 (2020 LPS: $0.05), while for the quarter, EPS closed at $0.002 (2020 LPS: $0.11). The number of shares used in our calculations amounted to 1,270,561,058 units. LASF closed the trading period on June 16, 2021 at $3.52 with a corresponding P/E of 28.53 times.
Balance Sheet Highlights:
As at March 31, 2021, the Company’s total assets closed the period at $4.30 billion, 9% more than its value of $3.96 billion a year ago. This increase was largely due to ‘Cash and cash equivalents’ and ‘Short term Deposits’ which closed at $1.06 billion (2020: $487.44 million) and $312.76 million (2020: $235.49 million), respectively. However, these were tempered by a decline in ‘Receivables’ by $272.67 million to $1.64 billion (2020: $1.91 billion).
Shareholders’ equity attributable to stockholders of the Company amounted to $1.70 billion relative to $1.54 billion booked in 2020. This translates to a book value per share of $1.34 (2020: $1.21).
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.