JM | Jul 19, 2021

1834 Investments reports big 100% increase in year-end net profit

/ Our Today

Total expenses declined by 32%. (Photo:

1834 Investments more than doubled its year-end profit closing its last quarter in March very strongly.

Profit for the year closed at $81.08 million as at March 31, 2021 relative to $40.59 million recorded during the comparative period in 2020. 1834 Investments performed very strong in the last quarter with net profit amounted to $80.43 million compared to net profit of $27.52 million booked in March last year.

Profit from operations closed at $69.58 million versus profit from operations of $7.23 million booked in the prior comparable period. Profit from operations for the March quarter totalled $76.36 million compared to loss from operations of $10.41 million documented in the previous corresponding quarter.

However, revenues for the year declined by 16 per cent moving from $25.08 million in 2020 to $21.09 million in 2021. For the quarter, the company generated revenue of $7.39 million coming from $7.63 million in 2020, representing a three per cent decline year over year. 

Doubling of fair value gains

Fair value gain on investment properties during the period under review amounted to $55.40 million coming from the $22.75 million posted in 2020. Other operating income rose to $53.53 million (2020: $47.70 million).

Consequently, total income for the period increased by 36 per cent to $130.03 million relative to $95.52 million for the corresponding period last year. Total income for the quarter closed at $76.54 million versus total income of $12.70 million reported in the corresponding quarter in 2020.

Total expenses declined by 32 per cent from $88.29 million in 2020 to $60.45 million in 2021. Of total expenses, administrative expenses went up 45 per cent to close the period at $28.42 million.

Other operating expenses were shaved by almost 50 per cent to $33.23 million coming from $63.57 million in 2020.  Impairment gain amounted to $1.20 million, relative to a loss of $5.10 million booked in 2020.

Big jump in finance costs

Total expenses for the quarter closed at $179,000 (2020: $23.12 million). Finance costs rose 156 per cent from $373,000 in 2020 to $956,000 recorded for the period under review.

No ‘Loss on liquidation of subsidiaries’ was recorded relative to $1.90 million booked in 2020 and a ‘Share of profit from interest in associate, net of tax’ of $18.14 million was recorded compared to the $46.56 million booked last year. Tax charges of $5.69 million were incurred for the year end, compared to $10.93 million the prior year.

The earnings per share for the year amounted to 6.69 cents (2020: 3.35 cents). For the quarter, the earnings per share (EPS) amounted to 6.64 cents versus an EPS of 2.27 cents.

The company, as at March 31, 2021, recorded total assets of $1.66 billion, an increase of 11 per cent when compared to $1.50 billion recorded last year. The movement was attributed to a 56% increase in ‘Investment’ closing at $435.19 million and a 13 per cent growth in ‘Investment Properties’ to $492.50 million, respectively.

This was however tempered by an increase in ‘Cash and cash equivalents’ which closed at $34.27 million (2020: $110.58 million). Total Stockholders’ Equity as at March 31, 2021 closed at $1.51 billion, a five per cent increase from $1.44 billion the prior year.

This resulted in a book value of $1.25 compared to the value of $1.19 as at March 31, 2020.


What To Read Next