MFS reports nine months net loss of $34.10 million

May 16, 2024

MFS Capital Partners Limited (MFS) for the nine months ended March 31, 2024, reported a 97% decrease in Revenue totalling $493,100 compared to $14.59 million in the corresponding period last year. Revenue for the third quarter closed at $132,500 (2023: Nil).

Other operating income decreased by 3% to $5.60 million compared to $5.77 million for the nine months ended March 31, 2023. The company booked other operating income of $1.05 million for the third quarter versus $2.80 million reported for the similar quarter of 2023.

Administrative expenses increased by 158% from $15.55 million in 2023 to $40.19 million in the period under review. As a result, operating loss for the nine months ended March 31, 2024, amounted to $34.10 million, relative to operating profit of $4.81 million reported in 2023.

Finance costs for the nine months ended March 31, 2024, amounted to $0, (2023: $280,000).

Loss before taxation totalled $34.10 million compared to pretax profit of $4.53 million booked in the corresponding period last year.

Taxation for the nine months ended March 31, 2024, amounted to $0, (2023: $614,570)

Net Loss for the nine months ended March 31, 2024, amounted to $34.10 million (2023: Net profit of $3.91 million). For the third quarter, net loss was $16.59 million (2023: $1.97 million).

Consequently, Loss Per Share for the nine months amounted to $0.09 (2023: EPS: $0.01), while Loss Per Share for the quarter totalled $0.041 (2023: LPS: $0.005). The twelve months trailing LPS was $0.07, and the number of shares used in these calculations was 400,000,000.

Notably, MFS’s stock price closed the trading period on May 15, 2024, at a price of $1.31.

Balance Sheet Highlights

The company’s assets totalled $1.47 billion (2023: $67.36 million). The growth in total assets was primarily driven by a $787.27 million increase in ‘Investment subsidiary’, a $315.96 million uptick in ‘Cash and bank balance’. Also, ‘Related parties’ and ‘Investments’ grew by $101.83 million and $158.55 million in the period, respectively.

Shareholder’s equity was $444.77 million (2023: Shareholder’s deficit of $31.70 million), representing a book value per share of $1.11 (2023: deficit per share of $0.08).


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