Admin expenses rose by 21% to close the June quarter at $12.09 million

Durrant Pate/Contributor

Montego Bay-based medical and real estate outfit, GWEST Corporation has seen a sharp increase in revenues during the June quarter but this was insufficient to put a dent in its losses.

Total revenues for the quarter came out at J$43.41 million, an increase of 44 per cent when compared with the J$30.80 million booked last year. Management notes that the improved revenues were mainly impacted by a 77 per cent increase in patient fees during the quarter, which was mainly due to increase business activity and opening of the surgery centre facilities.

Additionally, “rental and lease income increased by 21 per cent over the corresponding quarter in the prior year. This increase due to increase lease of space,” the management indicated.

Direct cost rising

Direct cost for the period remained at J$8.84 million year over year. Consequently, gross profit increased 63 per cent, amounting to J$34.57 million relative to the J$21.24 million for the corresponding period in 2021.

Administrative expenses increased by 21 per cent to close the period at $12.09 million (2021: J$9.98 million), while other operating expenses amounted to J$24.80 million, up 29 per cent from J$19.20 million for the corresponding period in 2021. The Wayne Gentles-led management team explains that this increase was due to start up operating cost of the newly opened surgery centre.

Finance cost for the period amounted to J$8.40 million relative to J$9.53 million booked for the comparable period in 2021. There was no taxation charge for the period, as such, net loss for the period amounted to J$10.69 million relative to a net loss of J$10.76 million in 2021.

Total comprehensive loss for the quarter totalled J$10.69 million relative to a loss of J$10.76 million in 2021. Loss per share for the period remained at $0.02 year over year. As at June 30, 2022, total assets remained at J$1.67 billion year over year.

This was mainly because of the 51 per cent increase in ‘Property and equipment,’ which closed J$508.73 million (2021: J$337.19 million), 10 per cent decline in ‘Investment Property’ which totalled $856.34 million (2021: J$952.72 million) and 36 per cent decline in ‘Right of use assets,’ which closed to J$61.90 million (2021: J$97.26 million).

Shareholders’ Equity totalled J$703.72 million (2021: J$679.48 million) resulting in a book value per share of J$1.45 (2021: J$1.40).