February 15, 2023

MFS Capital Partners Limited (MFS)

Unaudited results for the six months ended December 31, 2022: –

For the six months ended December 31, 2022, MFS Capital Partners Limited (MFS) reported $14.59 million in revenues (2021: nil). MFS reported no cost of sales (2021: nil) consequently Gross Profit amounted to $14.59 million for the period under review. Revenue for the quarter amounted to $2.03 million (2021: nil).

MFS reported ‘Other Income’ of $2.97 million for the period (2021: $48.34 million). This other income is derived from a “Net Payables write off.”

Administrative expenses were $10.55 million (2021: $18.70 million). Admin expenses for the quarter amounted to $4.31 million (2021: $11.15 million).

The company reported an operating profit of $7.01 million versus $29.64 million in 2021.

The company had finance costs of $230,000 for the 6-month period (2021: $1.13 million).

Profit before taxation amounted to $6.78 million versus $28.51 million recorded twelve months earlier.

Taxation amounted to $892,277 (2021: $3.42 million), MFS reported a second quarter net profit of $524,763 million versus $21.91 million reported in 2021. Net Profit closed the period under review at $5.88 million (2021: $25.08 million).

Based on earnings for the period, MFS outputs an earnings per share (EPS) of $0.015 (2021: $0.06). The trailing twelve months Loss per share LPS amounted to $0.011. The number of shares used in our calculations is 400,000,000. As at February 13, 2022, MFS stock price closed the trading period at a price of $3.88.

Balance sheet at a glance:

As at December 31, 2022, Total Assets amounted to $52.6 million, 71% greater than the $30.75 million reported in 2021. This increase was mainly due to increases in ‘Due from related parties’ and ‘Cash and Bank Balances’ which closed at $28.26 million (2021: $5.37 million) and $8.56 million (2021: $1.92 million), respectively.

As at December 31, 2022, MFS reported a Shareholders’ Deficit of $29.73 million relative to Shareholders’ Deficit $25.27 million recorded in the corresponding period last year. This resulted in a shareholders’ deficit per share of $0.07 versus a shareholders’ deficit per share of $0.06 in 2021.

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