SML reports 546% increase in first quarter net profits

Date: May 15, 2019

Stanley Motta Limited (SML), for the three months ended March 31, 2019 booked a 135% increase in revenue to total $96.86 million compared to $41.17 million for the same period in 2018. The Company mentioned that, “this was due to increased rental space.”

Administrative expenses amounted to $23.03 million (2018: $15.95 million), while other operating income totalled $28,000 (2018: nil).

This translated into operating profit surging to $73.87 million when compared to last period’s $25.23 million.

Finance costs of $3.92 million was recorded for the period under review (2018: $14.54 million). As such, profit before tax soared to $69.95 million for the period ended March 2019 relative to $10.69 million documented in the same period last year.

Net profit for the period totalled $69.08 million (2018: $10.69 million). Total comprehensive income of $80.26 million was reported for the period versus $10.69 million recorded in the prior corresponding period. The Company noted that, “net profit for the quarter was also bolstered by foreign exchange gains of J$5.9m resulting from the translation of cash balances.”

Earnings per share (EPS) for the period totalled $0.09 (2018: $0.01). The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on May 15, 2019 at $4.75.

Balance Sheet at a glance:

As at March 31, 2019, total assets amounted to $4.81 billion, up from $2.78 billion booked twelve months earlier. The increase in total assts was as a result of the increase in ‘Investment Property’ and ‘Inventories’ which closed at $4.68 million (2018: $2.59 million) and $1.70 million (2018: $937,000). Also, ‘Cash and Cash equivalents’ amounted $98.28 million (2018: $60.33 million).

Shareholders’ Equity of $3.95 billion was reported (2018: $1.91 billion) which resulted in a book value per share of $5.22 (2018: $2.52).



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.