November 7, 2022

MFS Capital Partners Limited (MFS)

Unaudited results for the three months ended September 30, 2022: –

For the three months ended September 30, 2022, MFS Capital Partners Limited (MFS) reported $12.56 million in revenues (2021: nil). MFS reported no cost of sales (2021: nil) consequently Gross Profit amounted to $12.56 million for the period under review.

MFS reported ‘Other Income’ of $3,066 for the quarter (2021: $11.77 million). This other income is derived from a “Net Payables write off.”

Administrative expenses were $6.24 million (2021: $7.55 million).

The company reported an operating profit of $6.32 million versus $4.22 million in 2021.

The company had finance costs of $150,000 for the 3-month period (2021: $88,000).

Profit before taxation amounted to $6.17 million versus $4.13 million recorded twelve months earlier.

Taxation amounted to $810,295 (2021: $950,999), MFS reported a first quarter net profit of $5.36 million versus $3.18 million reported in 2021. Net Profit attributable to shareholders closed at $5.36 million (2021: $3.18 million).

Based on earnings for the period, MFS outputs an earnings per share (EPS) of $0.013 (2021: $0.006). The trailing twelve months EPS amounted to $0.039. The number of shares used in our calculations is 400,000,000. As at November 4, 2022, MFS stock price closed the trading period at a price of $3.07, with a corresponding P/E ratio of 78.35 times.

Balance sheet at a glance:

As at September 30, 2022, Total Assets amounted to $72.67 million, 193% greater than the $24.82 million reported in 2021. This increase was mainly due to increases in ‘Due from related parties’ and ‘Cash and Bank Balances’ which closed at $24 million (2021: $5.12 million) and $39.62 million (2021: $1.02 million), respectively.

As at September 30, 2022, MFS reported a Shareholders’ Deficit of $30.25 million relative to Shareholders’ Deficit $45.93 million recorded in the corresponding period last year. This resulted in a shareholders’ deficit per share of $0.08 versus a shareholders’ deficit per share of $0.11 in 2021.

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