Company records loss from operations, reversing previous gains

University residential developer and rental company, 1834 Investments Limited is still reeling from the effects of COVID-19 with a less than desired nine-month performance for the period ended December 2020.

During the period, the company reversed the gains made last year recording a loss from operations of $6.78 million relative to profit from operations of $17.64 million for the nine months ended December 2019. Loss from operation for the quarter amounted to $9.40 million relative to a loss of $23.61 million for the corresponding quarter of 2019.

Tax charges of $7.80 million were incurred for the nine-month period compared to $7.44 million reported in 2019. As such, the profit for the period amounted to $655,000 relative to profit of $13.07 million for the prior year.

For the quarter, 1834 posted net loss of $4.61 million versus a net loss of $21.81 million in the previous corresponding quarter. Finance cost for the period amounted to $607,000 compared to $1.66 million reported for the comparable period of 2019.

Chalking up more losses

Loss from continuing operations before other income amounted to $7.39 million compared to the 2019 profit of $15.98 million. Consequently, profit from continuing operations before taxation amounted to $8.45 million versus a profit of $20.52 million for the same period in 2019.

For the quarter, loss from continuing operations before taxation closed at $4.69 million relative to a loss from operations before taxation of $24.25 million in the prior comparative quarter. For the period under review 1834 Investments posted operating income of $13.70 million, a 21 per cent decline when compared to $17.45 million for the comparable period in 2019. For the quarter, operating income fell by 12 per cent to $4.21 million coming from $4.80 million posted in 2019.

Other income fell by 39 per cent to $39.79 million coming from the 2019 posting of $65.37 million. Other income for the quarter closed at $1.52 million coming from $1.46 million in 2019.

As such, total revenue for the nine months amounted to $53.49 million, 35 per cent below last year’s corresponding period of $82.82 million.

Containing expenses

Total expenses decreased by eight per cent from $65.18 million in 2019 to $60.27 million in 2020. Of total expense, administrative expense surged by 90 per cent to close at $35.62 million coming from $18.75 million posted in 2019, while other operating expenses was down by 46 per cent to $25.20 million coming from $46.42 million in 2019.

Total comprehensive income for the period under review closed at $25.98 versus total comprehensive income of $17.63 million recorded in the prior comparable period. While for the quarter, total comprehensive income totalled $2.43 million compared to loss of $19.04 million booked in the same quarter last year.

1834 Investments, as at December 31, 2020, recorded total assets of $1.48 billion, a one per cent increase when compared to $1.46 billion recorded last year. The movement was attributed to increase in ‘Securities purchased under resale agreements’ which closed the period at $295.73 million (2019: $264.41 million).

Also, ‘Investment properties’ contributed to the growth closing at $437.10 million (2019: $414.35 million).