February 16, 2023

Stanley Motta Limited (SML)

Unaudited Financials for the twelve months ended December 31, 2022:-

 Stanley Motta Limited (SML) for the twelve months ended December 31, 2022, booked a 1% increase in revenue to total $499.45 million compared to $492.92 million for the same period in 2021. For the fourth quarter revenue increased 0.06%% to $126.03 million in 2022 compared to $125.95 million the previous year. Commenting on revenue growth SML noted, “this was drive by an increase in rental rates for a third of the space and the net effect of a movement in the Jamaican dollar during the year.”

Administrative expenses amounted to $127.96 million (2021: $156.70 million), while other operating income totalled $11.39 million (2021: $40.13 million).

This translated into operating profit increasing to $336.55 million when compared to last period’s $305.65 million. For the quarter, operating profit increased 55% to close the period at $102.61 million (2021: $66.38 million).

Finance costs of $74.32 million (2021: $56.39 million) was recorded for the period. For the quarter, finance cost amounted to $17.62 million (2021: $11.40 million). Management noted, “ Finance costs of $74.4M for 2022 includes a one time cost relating to the refinancing of the USD loan. It also includes non-cash adjustment relating to IFRS 16 (Leases).”

Revaluation gain on investment property shrank 4% to $531.13 million compared to $554 million in 2021.

As such, profit before tax fell 1% to $793.32 million for the period ended December 31, 2022 relative to $803.54 million in 2021. As for the quarter, profit before tax closed the period at $616.12 million versus $715.13 million in the prior corresponding quarter.

Net profit for the period totalled $788.66 million (2021: $798.30 million) after incurring taxes of $4.66 million (2021: $4.95 million). While for the quarter, net profit of $615.22 million was recorded (2021: $714.31 million).

Total comprehensive income of $772.11 million (2021: $877.29 million) while for the quarter, SML reported total comprehensive income of $631.12 million in 2022 relative to $721.39 million in 2021.

Earnings per share (EPS) for the period totalled $1.04 (2021: $1.05). EPS for the third quarter amounted to $0.81 (2021: $0.94). The twelve months trailing EPS amounted to $1.04. The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on February 15, 2022, at $4.01, with a corresponding P/E of 3.85 times.

Balance Sheet at a glance:

As at December 31, 2022, total assets amounted to $7.21 billion, up from the balance of $6.52 billion in 2021. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to $6.86 billion in 2022 from $6.17 billion in 2021.

Shareholders’ Equity of $6.01 billion was reported (2021: $5.43 billion) which resulted in a book value per share of $7.93 (2021: $7.17).

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