Net profit went down 1% for the year

Durrant Pate/Contributor

Real estate company, Stanley Motta endured a tough 2022 in which it dropped profit one per cent, closing at J$788.66 million, down J$798.30 million in 2021.

During the year, the company incurred taxes of J$4.66 million, down from J$4.95 million in 2021 while net profit for December 2022 closed at J$615.22 million, down from the J$714.31 million recorded for 2021. Total comprehensive income for 2022 went down to J$772.11 million from J$877.29 million in 2021.

For the quarter, comprehensive income closed at J$631.12 million in 2022 relative to J$721.39 million in 2021. Revenues for the year went down one percent to J$499.45 million compared to J$492.92 in 2021.

For the fourth quarter, revenue increased 0.06 per cent to J$126.03 million in 2022 compared to J$125.95 million the previous year. Commenting on revenue growth the management noted, “this was drive by an increase in rental rates for a third of the space and the net effect of a movement in the Jamaican dollar during the year.”

Expenses also went down

Administrative expenses amounted to J$127.96 million (2021: J$156.70 million), while other operating income totalled J$11.39 million (2021: J$40.13 million). This translated into operating profit increasing to $336.55 million when compared to last period’s $305.65 million.

For the quarter, operating profit increased 55 per cent to close the period at J$102.61 million (2021: J$66.38 million). Finance costs of J$74.32 million (2021: J$56.39 million) was recorded for the period.

For the quarter, finance cost amounted to J$17.62 million (2021: J$11.40 million). The management notes that, “finance costs of J$74.4 million for 2022 includes a one-time cost relating to the refinancing of the USD loan. It also includes non-cash adjustment relating to IFRS 16 (Leases).”

Revaluation gain on investment property shrank four per cent to J$531.13 million compared to J$554 million in 2021. As at December 31, 2022, total assets amounted to J$7.21 billion, up from the balance of J$6.52 billion in 2021.

The increase in total assets was as a result of the increase in ‘Investment Property’ which increased to J$6.86 billion in 2022 from J$6.17 billion in 2021. Shareholders’ Equity of J$6.01 billion was reported (2021: J$5.43 billion) which resulted in a book value per share of J$7.93 (2021: J$7.17).