April 1, 2021
Stanley Motta Limited (SML) for the year ended December 31, 2020, booked a 9% increase in revenue to total $458.18 million compared to $419.85 million for the same period in 2019. For the quarter, revenue increased by 6% to $114.18 million in 2020 compared to $107.34 million the previous year. SML indicated that, “These increases are mainly attributable to the depreciation of the Jamaican dollar which moved from an average of J$134.13:1US$ as at 31st December 2019 to J$144.41:1US$ at 31st December 2020.”
Administrative expenses amounted to $146.82 million (2019: $121.72 million), Whereas, for the period other operating income totalled $800,000 (2019: $91,000). Net impairment losses on financial assets amounted to $2.20 billion (2019: nil).
This translated into operating profit increasing to $309.95 million when compared to last period’s $298.23 million. For the quarter, operating profit closed at $123.87 million relative to an operating profit of $94.91 million in the prior corresponding quarter.
Finance costs of $84.40 million (2019: $65.94 million) was recorded, while revaluation gain on investment property surged to $626.06 million (2019: $53.02 million). For the quarter, finance cost and revaluation gain on investment property closed the period at $51.74 million (2019: $31.51 million) and $626.06 million (2019: $53.02 million) respectively.
Profit before tax rose to $851.61 million for the year ended December 31, 2020 relative to $285.30 million in 2019. As for the quarter, profit before tax closed the period at $698.19 million versus $116.42 million in the prior comparable quarter.
Taxation for the period amounted to $3.37 million (2019: $4.01 million). This resulted in a net profit for the period totalled $848.25 million (2019: $281.29 million), while for the quarter net profit of $700.06 million (2019: $115.36 million) was recorded.
Total comprehensive income closed the review period at $885.96 million (2019: $291.41 million) while for the quarter, total comprehensive income totalled $661.90 million (2019: $98.44 million).
Earnings per share (EPS) for the period totalled $1.12 (2019: $0.37). EPS for the quarter amounted to $0.92 (2019: $0.15). The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on April 01, 2021 at $5.38 with a corresponding P/E ratio of 4.60 times.
SML noted that, “Revenue for 2021 is expected to remain stable excluding significant fluctuations in the foreign exchange and property revaluations. The collection of rent in US dollars is expected to continue on a timely basis.”
Balance Sheet at a glance:
As at December 31, 2020, total assets amounted to $5.71 billion, up from $4.87 billion in 2019. The 17% increase in total assets was as a result of the increase in ‘Investment property’ which advanced from $4.78 billion in 2019 to $5.48 billion in 2020. ‘Receivables’ and ‘Cash and cash equivalent’ also reported growth closing at $49.41 million (2019: $14.03 million) and $54.22 million (2019: $33.71 million), respectively.
Shareholders’ Equity of $4.74 billion was reported (2019: $4 billion) which resulted in a book value per share of $6.26 (2019: $5.28).
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