February 14, 2022
Stanley Motta Limited (SML) for the year ended December 31, 2021, booked an 8% increase in revenue to total $492.92 million compared to $458.18 million for the same period in 2020. For the quarter, revenue increased by 8% to $125.95 million in 2021 compared to $117.04 million the previous year. SML indicated that, “These increases are mainly attributable to the devaluation of the Jamaican dollar (J$) which moved from an average of J$144.41 to J$155.15:US$1 over the period, December 2020 to December 2021.” SML also indicated, “Revenue for 2022 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. “
Administrative expenses amounted to $155.82 million (2020: $134.53 million), Whereas, for the period other operating income totalled $12.66 million (2020: $800,000). SML indicated that, “The increases are due to a higher Foreign Exchange Loss (FX loss) of J$38.6M for the YTD period compare to a loss of J$32M for the same period of the prior year. The FX Losses are associated with the revaluation of our US dollar (US$) denominated loan. This was coupled with the costs associated with planned building repairs & maintenance totaling approximately J$25M.”
This translated into operating profit increasing to $296.36 million when compared to last period’s $277.95 million. For the quarter, operating profit closed at $66.38 million relative to an operating profit of $72.53 million in the prior corresponding quarter.
Finance costs of $44.59 million (2020: $52.40 million) was recorded, while revaluation gain on investment property surged to $660.15 million (2020: $626.06 million). For the quarter, finance cost and revaluation gain on investment property closed the period at $11.40 million (2020: $11.11 million) and $660.15 million (2020: $626.06 million) respectively.
Profit before tax rose to $911.92 million for the year ended December 31, 2021 relative to $851.61 million in 2020. As for the quarter, profit before tax closed the period at $715.13 million versus $687.48 million in the prior comparable quarter.
Taxation for the period amounted to $3.72 million (2020: $3.37 million). This resulted in a net profit for the period totalled $908.20 million (2020: $848.25 million), while for the quarter net profit of $714.31 million (2020: $686.48 million) was recorded.
Total comprehensive income closed the review period at $981.46 million (2020: $885.96 million) while for the quarter, total comprehensive income totalled $721.39 million (2020: $675.40 million).
Earnings per share (EPS) for the period totalled $1.20 (2020: $1.12). EPS for the quarter amounted to $0.94 (2020: $0.91). The number of shares used in our calculations amounted to 757,828,490 units. SML’s stock price closed the trading period on February 14, 2022 at $5.99 with a corresponding P/E ratio of 5x.
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, 2021, total assets amounted to $6.51 billion, up from $5.71 billion in 2020. The 14% increase in total assets was as a result of the increase in ‘Investment property’ which advanced from $5.48 billion in 2020 to $6.27 billion in 2021. ‘Cash and cash equivalent’ also reported growth closing at $70.76 million (2020: $54.22 million), while receivables reported a decline closing at $16.82 million (2020: $49.40 million), SML explained, “ All rent deferment offered in 202 because of the pandemic, has now been fully recovered.
Shareholders’ Equity of $5.54 billion was reported (2020: $4.74 billion) which resulted in a book value per share of $7.31 (2020: $6.26).
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