SML reports $1.67 billion in nine months net profit

Date: November 14, 2018

Stanley Motta Limited (SML) for the nine months ended September 30, 2018, booked a 303% increase in revenue to total $172.21 million compared to $42.74 million for the same period in 2017. According to SML, “This increase represents the new income from Unit 4 which was handed over to the tenant in May of 2017.” For the third quarter revenue increased 161% to $78.86 million in 2018 compared to $29.50 million the previous year.

Administrative expenses amounted to $81.26 million (2017: $28.36 million), while other operating income totalled $13,000 (2017: nil). SML noted, “This was due to one off expenses from a realtor commission payment of $13m, and also expenses for the IPO. The property management services fee is reflected in the 2018 figures and not in the 2017 figures.”

This translated into operating profit surging to $90.96 million when compared to last period’s $14.39 million. For the quarter, Operating Profit went up by 59% to close the period at $34.63 million (2017: $21.85 million).

Finance costs of $37.41 million (2017: nil) was recorded, while revaluation gain on investment property of $1.61 billion(2017: nil)  was booked.

Profit before tax soared to $1.67 billion for the period ended September 30, 2018 ended relative to $14.39 million in 2017. As for the quarter, profit before tax closed the period at $1.63 billion versus $21.85 million in the prior corresponding quarter.

Net profit for the period totalled $1.67 billion (2017: $14.39 million), while for the quarter $1.63 billion (2017: $21.85 million) was recorded. SML stated, “The net profit was bolstered by the revaluation gain of $1.611 billion on the Unit 4 investment property, as a result of a valuation completed in September 2018. Had this valuation not been done then the profit would have been J$53.5 million an increase of J$39.1 million, and an increase of 272%.”

Total comprehensive income of $1.67 billion (2017: $15.32 million), while for the quarter, SML reported $1.63 billion relative to $21.85 million.

Earnings per share (EPS) for the period totalled $2.20 (2017: $0.02). EPS for the third quarter amounted to $2.16 (Q3 2017: $0.03). The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on November 14, 2017 at $4.51.

SML stated that “Growth in monthly income will continue in the fourth quarter due to the full rental income becoming payable monthly for Unit 4 from November. This will mean that from November onwards all square footage of the property will be billed fully.”

Balance Sheet at a glance:

As at September 30, 2018, total assets amounted to $4.51 billion, up $3.80 billion from the balance of $711.64 million in 2017. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased from $635.13 million to $4.40 billion in 2018. Also, ‘Property, Plant and Equipment’ and ‘Cash and Cash Equivalents’ reported growths by 83%  and 887% closing at $20.77 million (2017: $11.36 million) and $58.73 million (2017: $5.95 million).

Shareholders’ Equity of $3.56 billion was reported (2017: $46.15 million) which resulted in a book value per share of $4.69 (2017: $0.06).


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