SSLVC reports six months net loss attributable to shareholders of $30.63 million

February 16, 2021

SSL Venture Capital Jamaica Limited (SSLVC), for the six months ended December 31, 2020, reported revenues of $19.32 million versus $95.30 million reported in the prior year’s corresponding period. While for the quarter, SSLVC reported $1.07 million (2019: $44.28 million) in revenue. SSLVC stated that, “The lingering effects of the COVID-19 pandemic, continue to severely impact performance especially on the bar and entertainment sectors, major revenue earners for the group, with losses before taxes coming in at $39.7M, for the quarter ending 31st December 2020 compared with $76.3M for the same period in 2019. Most of the losses recorded relate to the distribution segment, the main casualty of the pandemic.”

Cost of sales amounted to $19.12 million (2019: $85.29 million), thus resulting in gross profit of $199,288 relative to $10.01 million booked last year. Gross profit for the quarter amounted to $19,656 versus gross loss of $6.31 million booked for the second quarter ended December 31, 2019.

Other operating income closed at $115,524 (2019: $351,650) for the six months period ended December 31, 2020. In addition, administrative expenses were $35.93 million compared to the $79.70 million documented in the previous year corresponding period. SSLVC reported that, “The Group has been able to realise savings from rigorous cost management initiatives and efficiency improvements.”

Consequently, SSLVC recorded an operating loss of $35.62 million versus a loss of $69.34 million reported in 2019. Operating loss for the second quarter closed at $14.18 million relative to $48.08 million reported for the same quarter of 2019. Finance cost for the period fell 41% to close at $4.12 million compared to $7.01 million reported in 2019.

After tax credit of $4.81 million (2019: $25.45 million), the Company reported a net loss of $34.93 million versus a loss of $50.90 million reported in 2019. Net loss for the quarter amounted to $15.19 million (2019: $33.78 million).

However, net loss attributable to shareholders amounted to $30.63 million compared to a net loss attributable to shareholders of $40.14 million in 2019. For the quarter, net loss attributable to shareholders was $13.32 million (2019: loss of $26.64 million).

Loss per share (LPS) for the period amounted to $0.08 versus a loss per share (LPS) of 0.10 the prior year, while LPS for the quarter amounted to $0.03 (2019: LPS $0.07). The trailing twelve months loss per share amounted to $0.32. The number of shares used in our calculations is 400,000,000. SSLVC stock price closed the trading period at a price of $ 0.55 on February 15, 2021.

Management stated, “Following a strategic review of the distribution segment and the severe impact on the business brought on by the pandemic, the Board and majority shareholder of SSLVC have decided to shutter the operations of Bar Central effective December 31, 2020. It is anticipated that the process for winding up the company will be completed as soon as possible. Shareholders will be updated as the process unfolds. It is our intention to ensure that our shareholders be made whole on their investments.”

Balance sheet at a glance:

As at December 31, 2020, total assets amounted to $113.80 million down 51% from the $230.99 million booked in 2019. This decrease was mainly due to decreases in ‘Goodwill’ and ‘Property & Equipment’ which closed at nil (2019: $112.01 million) and $9.89 million ($18.71 million), respectively.

Shareholders’ deficit closed at $237.99 million relative to shareholders’ deficit $108.57 million recorded in the prior year’s corresponding period. This resulted in a shareholders’ deficit per share of $0.59 (2019 shareholders’ deficit per share: $0.27).

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