September 28, 2021
Margaritaville Turks Limited (MTL), for the twelve months ended May 31, 2021, reported revenues of $48,283 versus $5.94 million in the prior corresponding period. For the quarter, revenues amounted to $1,677 (2020: $124,230).
Cost of sales decreased by 97% for the period to $48,645 (2020: $1.84 million), while for the quarter a 99% decrease was observed to $2,039 (2020: $372,639).
As a result, gross loss totaled $362 compared to a gross profit of $4.11 million reported for the comparable period last year.
Total expenses decreased by 66% for the year ended May 2021, falling to $1.38 million from $4.04 million booked the prior year. This was mainly attributable to the 100% decline in promotional expense compared to $56,208 reported in the previous comparable period. Furthermore, administrative expenses fell by 71% which closed at $1.07 million from $3.69 million reported in 2020. Depreciation and amortization expense reported a 6% increase, to close at $309,075 (2020: $291,861). For the quarter, total expenses closed at $317,266 (2020: $297,291).
Consequently, operating loss for the year amounted to $1.38 million relative to the operating profit of $72,132 reported in May 2020. No finance cost or taxation were incurred hence loss for the year ended amounted to $1.38 million (2020: $72,132). The twelve-months loss per share was $0.020 compared to the earning per share of $0.001. The number of shares used in our calculations was 67,500,000. MTL closed the trading period on September 27, 2021, at US$0.09 while MTLJA closed the trading period on September 27, 2021 at J$14.20.
MTL noted, “In response to the COVID-19 pandemic, the company has taken and continues to take significant measures to preserve cash and control costs including the following: deferral of planned non-essential capital expenditure, negotiated extended credit terms with suppliers, acted diligently on collection of its receivables, implementation of measures to reduce staff costs, negotiated suspension of rental charges. The company however believes that the measures implemented should facilitate orderly conducting of operations for the foreseeable future, and therefore, that the going concern basis of preparation of the financial statements, is appropriate. However, the circumstances surrounding the pandemic represents a material uncertainty that may cast a doubt on the company’s ability to continue as a going concern and therefore whether the company will realize its assets and settle its liabilities in the ordinary course of business at the amounts recorded in the financial statements.”
Balance Sheet Highlights:
As at May 31, 2021, the Company recorded total assets of $4.08 million versus $5.33 million in 2020. This represents a 24% decline primarily due to ‘Owing by related companies’ which ended at nil (2020: $815,457) coupled with the 8% decrease in ‘Property, plant and equipment’ which closed at $3.02 million (2020: $3.30 million).
Total Shareholders’ Equity as at May 2021 closed at $2.91 million (2020: $4.29 million), which resulted in a book value of $0.043 (2020: $0.064).
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 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.