August 12, 2021
Stanley Motta Limited (SML), for the six months ended June 30, 2021, booked a 8% increase in revenue to total $243.17 million compared to $224.87 million for the same period in 2020. Revenue for the quarter amounted to $123.72 million compared to $112.85 million booked in 2020. It was noted “these increases are mainly attributable to the devaluation of the Jamaican dollar which moved from an average of J$141.00 to J$150.15:US$1 over the period, June 2020 to June 2021,” by Management.
Other operating income closed at $2.04 million relative to the $5.25 million that was documented for the six months ended June 30, 2020.
Administrative expenses amounted to $111.24 million (2020: $112.82 million). Management noted, “the decreases are due to a lower FX loss of J$20.7M for the YTD period compared to a loss of J$35.2M for the same period of prior year. The FX Losses are associated with the revaluation of our DBJ loan based in US dollars. This J$15M reduction in FX Loss year over year was offset by costs associated with planned building maintenance totaling J$14M.”
This translated into operating profit of $133.97 million (2020: $117.31 million), a 14% increase year over year. Operating profit for the quarter amounted to $68.11 million compared to $41.35 million reported for the same quarter in 2020.
Finance costs of $21.80 million was recorded for the period under review (2020: $21.30 million). As such, profit before tax increased to $112.17 million for the period ended June 30, 2021 relative to $96 million documented in the same period last year.
Tax expense year to date amounted to $1.99 million compared to $3.46 million incurred for the corresponding period in 2020.
Consequently, net profit for the period totaled $110.18 million (2020: $92.55 million). For the quarter, net profit increase 91% to $56.13 million relative to $29.34 million booked in 2020. SML stated, “This increase is attributable to the increase in revenue and demonstrates the company’s commitment to maintaining strong operational efficiency, while continuing the collection of rent in a timely manner.”
Total comprehensive income of $158.27 million was reported for the period versus $142.78 million recorded in the prior corresponding period. While for the quarter, total comprehensive income amounted to $48.94 million (2020: $60.64 million).
Earnings per share (EPS) for the period totaled $0.15 (2020: $0.12) EPS for the quarter amounted to $0.07 compared to $0.04 for the quarter ended June 30, 2020. The trailing twelve months EPS amounted to $1.14 The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on August 11, 2021 at $5.99 with a corresponding P/E of 5.24 times.
Balance Sheet at a glance:
As at June 30, 2021, total assets amounted to $5.84 billion, up from $5.06 billion booked twelve months earlier. The increase in total assts was mainly due to the increase in ‘Investment Properties’ which closed at $5.54 billion (2020: $4.86 billion) resulting in a 14% increase year over year.
Shareholders’ Equity of $4.83 billion (2020: $4.15 billion) which resulted in a book value per share of $6.38 (2020: $5.47).
Disclaimer:
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein