SML reports 90% decline in nine months net profit

Date: November 13, 2019

Stanley Motta Limited (SML) for the nine months ended September 30, 2019, booked a 81% increase in revenue to total $312.51 million compared to $172.21 million for the same period in 2018. For the third quarter revenue increased 39% to $107.09 million in 2019 compared to $76.86 million the previous year. SML noted that, “the increase over 2018 is due to increased rental space.”

Administrative expenses amounted to $110.26 million (2018: $81.26 million), while other operating income totalled $68,000 (2018: $13,000).

The Company stated that, “the results for the previous quarter included foreign exchange loss of J$19.5M on the revaluation of the long term loan. For this quarter, the foreign exchange loss was J$15M.”

This translated into operating profit surging to $202.32 million when compared to last period’s $90.96 million. For the quarter, operating profit went up by 83% to close the period at $63.29 million (2018: $34.63 million).

Finance costs of $34.43 million (2018: 37.41 million) was recorded, while no revaluation gain on investment property was recorded (2018: $1.61 billion).

As such, profit before tax fell drastically to $167.88 million for the period ended September 30, 2019 relative to $1.67 billion in 2018. As for the quarter, profit before tax closed the period at $51.56 million versus $1.63 billion in the prior corresponding quarter.

Net profit for the period totalled $164.93 million (2018: $1.67 billion) after incurring taxes of $2.95 million (2018: nil), while for the quarter $49.78 million (2018: $1.63 billion) was recorded.

Total comprehensive income of $191.96 million (2018: $1.67 billion) while for the quarter, SML reported $76.81 million in 2019 relative to $1.63 billion in 2018.

Earnings per share (EPS) for the period totalled $0.22 (2018: $2.20). EPS for the third quarter amounted to $0.07 (Q3 2018: $2.16). The number of shares used in our calculations amounted to 757,828,490 units. The twelve months trailing EPS amounted to $0.66. SML’s stock price closed the trading period on November 13, 2019 at $6.00.

SML highlighted, “revenue for the rest of 2019 will continue to be in line with results so far. The collection of rent in US dollars is expected to continue on a timely basis.”

Balance Sheet at a glance:

As at September 30, 2019, total assets amounted to $4.89 billion, up $383.75 million from the balance of $4.51 billion in 2018. The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to 4.75 billion in 2019 from $4.40 billion in 2018. Also, ‘Property, Plant and Equipment’ and ‘Cash and Cash Equivalents’ reported growths by 8%  and 31% closing at $22.45 million (2018: $20.77 million) and $76.85 million (2018: $58.73 million).

Shareholders’ Equity of $3.99 billion was reported (2018: $3.56 billion) which resulted in a book value per share of $5.27 (2018: $4.69).



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