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,
- Administrative and general expenses closed at US$3.43 million, an 8% decline compared to US$3.73 million in 2017.
- Depreciation totalled US$241,470, a growth of 14% relative to the US$211,755 booked last year.
- Promotional Expenses amounted to US$82,574 (2017: US$63,226), a 31% increase.
- 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.
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