February 2, 2021
Margaritaville (Turks) Limited (MTL), for the six months ended November 30, 2020 reported that revenues decreased by 99% for the period to US$40,451 (2019: US$3.86 million). The second quarter’s revenue totalled US$20,034 (2019: US$1.83 million), a 99% decrease. Management stated, “with no revenue to support expenditure, there are even greater efforts at cost containment. We had to initiate redundancy proceedings on behalf of some employees during the quarter to be compliant with local labour laws and also because some permits for work expired after the declaration of the Corona pandemic in March 2020.”
Cost of sales (COS) decreased by 96% for the period to US$40,451 (2019: US$969,861). For the quarter it also decreased by 96% to total US$20,034 (2019: US$468,941).
As a result, there was no gross profit relative to the US$2.89 million reported as at November 2019. There was also no gross profit for the second quarter (2019: US$1.36 million).
There was no Other Operating Income for the six months ended November 30, 2020 (2019: US$1,200).
Total expenses decreased by 67% for the period in review to US$805,006 (2019: US$2.45 million). This decrease was associated with a 76% decline in the company’s administrative expenses to US$533,819 compared to US$2.18 million in 2019. Additionally, the company reported no promotional expenses for the period relative to the US$28,937 reported in the prior year’s corresponding period. Depreciation and amortization and management fees closed the six-month period at US$146,187 (2019: US$113,128) and US$125,000 (2019: US$125,000), respectively. However, for the second quarter ended November 30, 2020, total expenses decreased by 70% to US$366,919 (2019: US$1.23 million).
Consequently, operating loss for the first six months amounted to US$805,006 when compared to the operating profit of US$445,312 reported twelve months prior. Operating loss for the second quarter totalled US$366,919 versus an operating profit of US$128,010 in the previous comparable period.
There was no finance cost incurred for the first six months ended November 2020. Total comprehensive loss for the six months amounted US$805,006 relative to total comprehensive income of US$445,312 reported in November 2019. While for the quarter, MTL’s total comprehensive loss amounted to US$366,919 relative to a profit of US$128,010 in the previous comparable quarter.
The six-months loss-per-share was US$0.0119 compared to earnings-per-share of US$0.0066 reported in 2019, while the LPS for the quarter amounted to US$0.0054 (2019 EPS:US$0.0019). The twelve months LPS amounted to US$0.017 The number of shares used in our calculations was 67,500,000. MTL closed the trading period on February 2, 2021 at US$0.11.
The Company noted that “This has been an unprecedented journey to date. There is no determined date for resumption of cruising, but the commencement of vaccination gives us renewed hope. We feel confident of recovery with the continued support of our shareholders and stakeholders. Please continue to keep safe by observing protocols of Covid-19.”
Balance Sheet Highlights:
The company, as at November 30, 2020, recorded total assets of US$4.45 million versus US$6.16 million in 2019, a 28% decline. This was mainly attributable to ‘Owing by related companies’ for the period which fell to US$214,026 when compared to US$1.74 million documented in 2019. Cash and bank balance also reported an 87% decrease to end at US$12,040 (2019: US$91,603). Additionally, Development costs fell from US$79,993 in November 2019 to US$32,373 as at November 30, 2020. However, the total asset base was tempered by a 14% increase in the company’s ‘Trade and other receivables” which closed the period at US$91,456 (2019: US$79,987).
Total Stockholders’ equity as at November 30, 2020 closed the period at US$3.49 million (2019: US$4.97 million). This resulted in a book value of US$0.051 (2019: US$0.074).
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