SRA reports a $113 million net loss for the year end

Date: May 15, 2018

Sweet River Abattoirs Limited (SRA) Audited financials for the year ended March 31, 2018 reported revenue for the twelve months ended March 31, 2018 of $304.41 million, a decrease of 12% compared to the $345.12 million booked for the corresponding period in 2017. Revenue for the quarter declined by 26% compared to the corresponding quarter in 2017 to $64.98 million (2017: $88.15 million).

Cost of Sales fell by 13% over the twelve months moving from $294.03 million in 2017 to $256.45 million in 2018, resulting in a gross profit of $47.96 million (2017: $51.09 million). For the fourth quarter, gross profit amounted to $3.88 million, a significant decline of 75% when compared to the previous year’s comparable quarter of $15.36 million in 2017.

Administrative expenses increased by 348% to $165.63 million for the twelve months ended March 31, 2018 relative to $36.96 million for the same period of 2017. For the quarter there was also a surge in administrative expenses compared to the comparable 2017 to $131.25 million (2017: $10.80 million).

Finance cost increased 58% to close at $20.13 million (2017: $12.75 million), whilst finance income saw a 110% increase from $18,203 in 2017 to $38,139 for the financial year 2018.

Net profit for the twelve months saw a drastic deterioration from $1.39 million in 2017 to a net loss of $113.15 million. Net loss for the fourth quarter totalled $108.98 million compared to the profit of $719,310 reported for the previous corresponding quarter. This was mainly attributable to an ‘Impairment of Property Plant & Equipment’ of $78.10 million and a ‘Bad Debt Written Off’ of $38.82 million.

Loss per share (LPS) closed at $1.39 for the year relative to an earnings per share of $0.02. For the quarter, LPS totalled $1.34 as compared to an EPS of $0.009. The numbers of shares used in the calculations are 81,531,043 units. SRA stock price closed the trading period on September 26, 2018 at $3.86.

Balance Sheet at a glance:

As at March 31, 2018, the company’s assets totalled $412.64 million a 17% decrease compared to the $496.17 million booked as at ended March 31, 2017. ‘Property, Plant and Equipment’ and ‘Trade and Other Receivables’ contributed to the overall decline to close the year at $330.49 million (2017: $386.87 million) and $20.62 million (2017: $53.17 million) respectively. ‘Deferred Tax’ tempered the overall decline with a large increase to $27.91 million (2017: $3.24 million).

Shareholders’ equity amounted to $49.16 million as at March 31, 2018 (2017: $162.31 million) resulting in a book value per share of $0.60 (2017: $2.00).


Disclaimer:

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.

2018-09-28T16:26:24+00:00