Reduction in losses due to rising revenues

Jamaica-based medical and real estate outfit GWEST Corporation Limited continue to cut its losses, due to rising revenues.

Even though the Montego Bay-based company which listed on the Jamaica Stock Exchange has been cutting its losses, it is still in the red.

For the half-year period ended September 30, 2021, GWEST incurred a net loss of $18.10 million coming from $36.97 million for the same period last year.

GWEST reported loss before taxation of $18.10 million relative to the $36.97 million reported in 2020. No taxes were charged resulting in a net loss for the period of $18.10 million.

As for the September quarter, net loss closed at $7.16 million coming from $20.26 million for the comparable period in 2020. Pretax loss for the quarter totalled $7.16 million versus a loss of $20.26 million booked for the comparable quarter of 2020.

Revenues rising

For the six months under review, GWEST revenues rose by 33 per cent to $72.96 million  when compared with the $54.83 million booked last year. Revenue for the September quarter amounted to $41.97 million, up 35 per cetnt year over year.

In explaining the rise in revenues, the management pointed out that, “during the period we completed the build out of our surgery centre and overnight in-patient facility, which is expected to become operational within the third quarter of our financial year”.

Cost of sales rose 48 per cent to total $17.68 million relative to the $11.97 million reported for the same period last year. Notwithstanding, gross profits rose by 29 per cent to $55.28 million during the review period relative to the $42.86 million for the same period in 2020.

Gross profit for the quarter amounted to $33.13 million (2020: $25.05 million). Administrative expenses closed the period at $21.26 million versus $22.54 million in the previous corresponding period.

Other operating expenses amounted to $39.29 million, down from the $41.86 million recorded in 2020. In addition, other gains were reported at $6.65 million compared to a gain of $3.46 million booked same time in 2020.

Finance cost amounted to $19.48 million, slightly up from the $18.89 million posted in 2020.

Positive outlook for the remaining quarters of 2022

The management has pointed to a positive outlook for the remaining two quarters of its 2021-2022 financial year. According to the management, “our outlook for the coming quarters remains positive as there are signs that there will be further opening up of the economy and a rebound of both stopover tourism and cruise tourism. We have seen increased enquires in our investment properties and we expect to see improvement in the occupancy level in the upcoming periods”.

As at September 30, 2021, total assets amounted to $1.67 billion, four per cent more than the $1.60 billion the year prior. ‘Property and equipment’ contributed to the increase in the asset base, it rose by $133.58 million to total $361.81 million (2020: $228.24 million).

This was partially tempered by ‘Due from related parties’ which contracted by 48 per cent to end at $50.89 million (2020: $97.13 million).