MTL reports a 114% jump in year end net profit

August 13, 2018

Margaritaville (Turks) Ltd (MTL) for the year ended May 31, 2018, reported Total Revenue of  US$6.02 million, an 8% decline relative to the US$6.53 recorded for the prior financial year. Total revenue for the quarter amounted to US$1.96 million, a growth of 3% compared with the US$1.89 million reported for the comparable quarter in 2017.

Cost of sales for the period amounted to US$1.91 million, a 6% contraction relative to US$2.03 million recorded the previous year. This resulted in gross profit for the year of US$4.11 million, 9% lower than last year’s US$4.51 million reported in 2017. Gross profit for the quarter amounted to US$1.13 million, 2% above last year’s US$1.10 million.

Total expenses for the year declined 6% year over year, moving from US$4.01 million for the year end May 2017 to US$3.75 million.  Of this,

  1. Administrative and general expenses closed at US$3.43 million, an 8% decline compared to US$3.73 million in 2017.
  2. Depreciation totalled US$241,470, a growth of 14% relative to the US$211,755 booked last year.
  3. Promotional Expenses amounted to US$82,574 (2017: US$63,226), a 31% increase.
  4. MTL booked loss on disposal of property, plant and equipment of US$506 relative to nil twelvemonths earlier.

Notably, MTL recorded US$710,836 for other income versus nil in 2017. This was due to net claims from insurance of US$645,880 and other income of US$64,956.

Consequently, operating profit year over year reflected a 113% jump to US$1.07 million, relative to the $500,538 booked for the comparable period in 2017.  Operating income for the quarter amounted to US$920,377 in contrast to a profit of US$160,891 in 2017.

Finance cost of US$408 was charged for the year, compared to the US$1,078 recorded last year. As such, net profit improved 114% to US$1.07 million versus US$499,460 booked for the same period of in 2017. Net profit for the quarter amounted to US$920,144 , when compared with a net profit of US$160,338 recorded for the comparable quarter in 2017.

Earnings per share (EPS) for the year totaled US$0.016 versus an earnings per share of  US$0.007 for 2017. EPS for the quarter amounted to US$0.014 cents relative to a earning per share of $0.0024 cents in 2017. The number of shares used in our calculations 67,500,000 units. Notably, MTL’s stock price closed the trading period on August 13, 2018 at a price of US$0.17 cents

Balance Sheet at a glance:

Total Assets as at May 31,2018  amounted to US$5.82 million (2017: US$4.49 million). The increase year over year was due mainly to increases of 463% and 258% in ‘Trade Receivables’ and ‘Owing by Related Companies’ to US$527,709 (2017: US$93,814) and US$994,466 (2017: $277,602) respectively.

Shareholders’ Equity totalled US$4.79 million (2017: US$3.72 million). As such, book value per share amounted to US$0.071 relative to US$0.055 twelve months earlier.


Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.