January 15, 2025

Margaritaville (Turks) Limited(MTL)

Unaudited financials for the six months ended November 30, 2024:

All figures are presented in USD unless otherwise specified.

Margaritaville (Turks) Limited (MTL), for the six months ending November 30, 2024, reported a 33% increase in revenue totalling $4.44 million compared to $3.34 million in the corresponding period last year. Revenue for the second quarter had a 24% increase to close at $1.91 million compared to $1.54 million for the comparable quarter of 2023.

Cost of Sales amounted to $1.19 million (2023: 848,714), an increase of 40% year over year. Consequently, gross profit increased by 30% to $3.25 million compared to $2.50 million for the six months ending November 30, 2023. The company booked a gross profit of $1.39 million for the second quarter versus $1.17 million reported for the similar quarter of 2023.

Administrative Expenses increased by 28% to close at $2.56 million (2023: $1.99 million), while Depreciation and Amortization increased from $116,286 in 2023 to $116,499 in the period under review. As a result, total expenses for the six months ended November 30, 2024, amounted to $2.69 million, a 27% increase relative to $2.12 million reported in 2023.

Operating profit for the six months ended November 30, 2024, amounted to $567,444, a 50% increase relative to $378,800 reported in 2023. Operating profit for the second quarter amounted to $172,741 (2023: $100,144). Other operating expense totalled $10,412, an 85% increase from last year’s corresponding period. (2023: expense of $67,884).

Finance cost for the six months ended November 30, 2024, amounted to $7,775, a 31% decrease relative to $11,215 reported in 2023. Finance cost for the second quarter amounted to $3,675 (2023: $5,455).

There was no Taxation for the six months ended November 30, 2024. As a result, the Total Comprehensive profit for the year amounted to $549,138, an 83% increase from the $299,734 reported in 2023. For the second quarter, the Total Comprehensive profit for the year was $160,561 (2023: $70,106).

Consequently, Earnings Per Share for the six months amounted to $0.81 (2023: EPS: $0.44), while Earnings Per Share for the quarter totalled $0.24 (2023: EPS: $0.10). The twelve-month trailing EPS was $0.01, and the number of shares used in these calculations was 67,500,000.

Notably, MTL’s stock price closed the trading period on January 14, 2025, at a cost of $13.36 with a corresponding P/E ratio of 6.30x.

Balance Sheet Highlights

The company’s assets totalled $8.23 million (2023: $6.59 million). The growth in the company’s total asset base is primarily attributed to a 75% year-over-year (YoY) increase in “Assets Owing by Related Companies,” which rose to US$5.15 million (2023: US$2.95 million), and a 37% YoY increase in “Cash and Bank Balances,” which ended the period at US$167,339 (2023: US$121,779).

Shareholder’s equity was $5.18 million (2023: $4.27 million), representing a book value per share of $0.08 (2023: $0.06).

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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.