Gleaner spin-off entity saw revenues drop 13% to $103.41 million

Durrant Pate/Contributor

There is bad news today for shareholders in the former Gleaner company spin-off entity in Jamaica, 1834 Investments Limited, which saw its net profit tumble for the financial year ended March 30, 2022.

1834 Investments, which is in the business of real estate and private equity, experienced a profit for the year of J$3.21 million relative to the J$81.08 million posted in 2021. The bad news comes as shareholders prepare to vote on an offer next month to sell to Radio Jamaica, which made an upgraded offer over a month ago.

The company incurred tax charges amounting to J$6.36 million for the 12-month period compared to J$5.69 million in 2021. 1834 Investments inherited a share of loss from an interest in an associate, amounting to J$33.22 million, while in March 2021, the company received a share of profit worth J$18.14 million.

Impacted of the inherited loss

Given the inherited loss, 1834 Investments recorded a profit before taxation of J$9.57 million relative to J$86.77 million in 2021. Revenues for the year dropped to J$103.41 million, a 13 per cent decrease when compared to J$118.90 million reported for 2021.

For the March quarter, revenues fell by 39 per cent to J$40.06 million (2021: J$65.41 million). Other gains decreased by 37 per cent to J$26.57 million (2021: J$42.41 million).

Other losses for the quarter closed at J$17.01 million (2021: J$4.03 million). Total expenses increased by 20 per cent from J$49.32 million in March 2021 to J$59.17 million on March 31, 2022.

Of total expenses, administrative expense went up by 28 per cent to close at J$22.08 million (2021: J$17.29 million). Other operating expenses increased by 16 per cent to J$38.39 million (2021: J$33.23 million).

The company recorded an increase in impairment gain to J$1.30 million (2021: J$1.20 million). Finance costs for the year ended March 31, 2022 amounted to J$1.45 million compared to J$956,000 reported in 2021.

Total assets moved slightly higher

As at March 31, 2022, total assets increased to J$1.85 billion, an 11 per cent rise when compared to J$1.66 billion recorded last year. The movement was primarily attributable to increases in ‘Investment properties’ which now totaled J$545 million (2021: J$492.50 million) and ‘Securities purchased under resale agreements’ amounted to J$359.36 million (2021: J$302.90 million).

Total Shareholders’ Equity as at March 31, 2022 closed at J$1.512 billion, compared to J$1.510 billion recorded for the same period in 2021. This resulted in a book value per share of J$1.25 compared to a value of J$1.25 as at March 31, 2021.