Date: March 11, 2020
**Prior year period, 2019, was calculated using Segment Report information from Blue Power Group Limited’s Financial Statements:
The Lumber Depot Limited (LUMBER), for the six months ended January 31, 2020, reported revenue of $628.40 million, an increase of 6% year over year (2019: $591.69 million).
Cost of sales for the period amounted to $505.77 million. Consequently, gross profit for the period closed at $122.63 million.
Moreover, the Company reported administrative and other expenses of $74.33 million. Notably, Management highlighted that, “We have entered into an administrative services agreement with Blue Power Group Limited. This allows us to benefit from shared overhead costs for certain financial control and inventory management functions. This outsourcing arrangement is working very efficiently for us and we value the expertise, professionalism and ongoing commitment that the Blue Power Group Limited and its executive leadership brings to our business.”
As such, operating profit amounted to $48.30 million, up 52% relative to the $31.81 million reported in 2019.
Net finance costs totalled $3.52 million for the six months ended January 31, 2020. Of this, finance income for the six months amounted to $58,475. However, finance costs closed at $3.58 million for the six months ended 2020. In 2019, the company had reported net finance cost of $1.3 million.
Profit before taxation amounted to $44.78 million, up 44% year over year from the $31.14 million booked in 2019. Taxation for the period was $7.30 million, resulting in net profit for the six months of $37.48 million. This represented an increase of 36% for the six months relative to $27.59 million booked in 2019.
LUMBER noted that, “The improved performance of the Lumber Depot business reflects our ability to identify and participate in a growing number of residential construction and renovation projects. We have been able to maintain product availability and price competitiveness in all our core product lines and this has allowed us to maintain a strong and profitable market position.”
Earnings per share (EPS) for the six months amounted to $0.05 (2019: $0.04). The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on March 11, 2020 at a price of $1.17.
Balance Sheet Highlights:
As at January 31, 2020, the Company reported total assets of $350.60 million, a decline of 40% from the $588.36 million as at January 31, 2019. This mainly constituted ‘Inventories’ and ‘Cash and cash equivalents’ which closed at $108.85 million and $134.97 million respectively.
Shareholders’ Equity as at January 31, 2020 was $207.54 million. This resulted in a book value per share of $0.29 as at January 31, 2020.
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