Date: August 29, 2018
For the year ended March 31, 2018, 1834 Investments Limited (1834), revenue declined by 25% from $60.78 million for the comparable period in 2017 to $45.38 million. For the quarter, the Company generated revenue of $10.57 million, a 49% decline year over year.
Other operating income fell by 16% to $116.02 million (2017: $138.24 million). Consequently, total income for the period decreased by 19% to $161.40 million relative to $199.02 million for the comparable period last year. the company attributed the movement to, “lower interest income and reduced year over year gains from asset disposals.” Total Income declined 48% for the quarter to $51.49 million relative to $98.81 million for the fourth quarter in 2017.
Total expenses increased by 12% from $104.13 million in 2017 to $116.88 million in 2018. Of total expenses, administrative expenses went up 64% to close at $31.23 million (2017: $19.09 million), while other operating expenses slightly rose by 1% to $85.63 million (2017: $85.04 million). Total expenses for the quarter amounted to $58.53 million, 101% more than last year’s comparable period of $29.15 million. Management noted, “the variance was driven by one-off expenses incurred for the aforementioned early termination of a fifteen year obligation to Radio Jamaica Limited and by higher professional fees, which were offset by reduced administration costs. In the period the company engaged a new accounting firm to streamline its financial reporting.”
As such, profit from operations dipped by 53% from $94.90 million to $44.51 million for the year end. Loss from operations for the quarter totalled $7.05 million versus a profit of $69.66 million for the respective quarter ended March 31, 2017.
Finance costs dropped 86% from $2.71 million in 2017 to $380,000 for the comparable period in 2018. As such, profit from continuing operations before other income fell 52% to $44.13 million relative to $92.19 million booked in 2017.
Tax charges of $15.24 million were incurred for the year end, compared to $89.89 million the prior year. Consequently, profit for the year end amounted $81.93 million relative to $12.35 million for 2017. The company however recorded a loss of $7.30 million (2017: $38.88 million) for the fourth quarter.
The Earnings per share for the year amounted to $0.07 (2017: $0.01). For the quarter, the Loss per share amounted to $0.006 versus a LPS of $0.032. The number of shares used in this calculation was 1,211,243,827 units. As at August 28, 2018, the stock traded at $0.99.
Management also noted, “during the period we continued to streamline operations for greater efficiency and commenced the process to wind up its non-operational subsidiaries. Accordingly, the overseas subsidiary 1834 Investments (Canada) Inc. was dissolved (subsequent to the year-end) and four other dormant subsidiary companies are in the process of wind up.”
Balance Sheet Highlights:
The company, as at March 31, 2018, recorded total assets of $1.75 billion, a decrease of 7% when compared to $1.88 billion recorded last year. The movement was attributed to a 23% decline in Property, plant and equipment which closed at $10.85 million (2017: $15.64 million). Also, there was a significant increase in Cash and Cash Equivalents, by 781%, to $67.63 million (2017: $7.68 million).
Total Stockholders’ Equity as at March 31, 2018 closed at $1.70 billion, a 4% fall from $1.78 billion the prior year. This resulted in a book value of $1.41 compared to the value of $1.47 as at March 31, 2017.
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