August 14, 2020
Stanley Motta Limited (SML), for the six months ended June 30, 2020 booked a 9% increase in revenue to total $224.87 million compared to $206.20 million for the same period in 2019. Revenue for the quarter amounted to $112.85 million compared to $103.57 million booked in 2019. SML noted, “These increases are mainly attributable to the devaluation of the Jamaican dollar which moved from an average of J$131.7 to J$140.1: US$1 over the period, June 2019 to June 2020. All rental contracts are currently in USD so there is a direct correlation between the devaluation of the J$ and the increase in income.”
Other operating income closed at $5.25 million relative to the $589,000 that was documented for the six months ended June 30 , 2019.
Administrative expenses amounted to $112.82 million (2019: $66.49 million). The Company noted, “The increases are due to a significant FX loss of J$35.2M arising from the revaluation of our DBJ loan.” Management also highlighted, “Other expense increases relate to 1) SEZ fees which were $8m payable in 2020 which were not paid under the previous regime; 2) Repairs & maintenance, including additional car parking spaces and closing up the side of the large building which the tenants had previously kept open due to renovations; and 3) Depreciation expenses.”
This translated into operating profit of $117.31 million (2019: $140.30 million), a 16% decline year over year. Operating profit for the quarter amounted to $41.35 million compared to $56.13 million reported for the same quarter in 2019.
Finance costs of $21.30 million was recorded for the period under review (2019: $23.29 million). As such, profit before tax decreased to $96 million for the period ended June 30, 2020 relative to $117.01 million documented in the same period last year.
Tax expense year to date amounted to $3.46 million compared to $1.18 million incurred for the corresponding period in 2019.
Consequently, net profit for the period totaled $92.55 million (2019: $115.83 million). For the quarter, net profit fell 34% to $29.34 million relative to $44.70 million booked in 2019. Total comprehensive income of $142.78 million was reported for the period versus $125.27 million recorded in the prior corresponding period. The Company noted that, “This demonstrates the company’s commitment to maintaining strong operational efficiency, while continuing the collection of rent in a timely manner.”
Earnings per share (EPS) for the period totaled $0.12 (2019: $0.15) EPS for the quarter amounted to $0.04 compared to $0.06 for the quarter ended June 30, 2019. The trailing twelve months EPS amounted to $0.34 The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on August 13, 2020 at $5.13.
The Company indicated, “Revenue for the remainder of 2020 is expected to be stable excluding significant fluctuations in the foreign exchange rate. The collection of rent in US dollars is expected to continue on a timely basis.”
Balance Sheet at a glance:
As at June 30, 2020, total assets amounted to $5.06 billion, up from $4.81 billion booked twelve months earlier. The increase in total assts was mainly due to the increase in ‘Investment Property’ which closed at $4.86 million (2019: $4.72 million) resulting in a 3% increase year over year.
Shareholders’ Equity of $4.15 billion (2019: $3.93 billion) which resulted in a book value per share of $5.47 (2019: $5.18).
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