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Devonshire Industries Ltd. Releases 2018 Financial Results
Hamilton, Bermuda – 8 November 2018 – In a filing to the Bermuda Stock Exchange (“BSX”) Devonshire Industries Limited (the “Company”; Ticker: DEV.BH) released their financial results for the fiscal year ending 31 March, 2018. The filing stated:
We ended the year with a net income of $121,722 versus $181,957. The decline in net income was due mainly to lower gross margin.
This year we have made a heavy presence of our Manufactured products and the BermudaTrueRoof systems. To continue this aggressive approach, we will continue to promote the BermudaTrueRoof system at a 35%, when purchasing the complete system. This does have an impact on our margin and we are looking at ways to decrease the costs and continue to hold the pricing. As a result, our gross margin for the year declined from $1.22 Mil to $1.04. However, the negative impact of lower margin was mitigated by lower operating costs.
Selling expenses were down by 7.7% from $278,298 to $256,963 due to lower salaries and wages. Admin expenses were down 7.6% due to lower depreciation expenses and repairs. Other expenses were down $109,201 due to bad debt recoveries and R&D being fully amortized in 2017.
Cash and cash equivalents decreased from $679,846 to $664,825. Movement in cash and cash equivalents are as follows: cash inflows from operating activities of $382,767; cash used in investing activities of $22,619; and cash used in financing activities of $375,169. Trade and other receivables decreased from $ 273,367 to $166,167 as a result of lower sales on account at the end of the year. Inventory was at planned level of $900,000 to $1,000,000.
Decrease in property, plant and equipment values represents depreciation. We have capitalized expenditures of $22,619 this year as compared to $49,084 last year. These assets composed of Improvements for $1,953 and new Point-of-Sell related projects of $20,667.
We paid regular dividend of $0.25 per share and a special dividend $0.60 per share on account of our 60 Year Anniversary.
We are looking to increase the profitability of the company this year by hiring a new Sales Manager to promote and upsell to our existing customer base as well as penetrating the customer base of our competitors. Keep our expenses down and increase our margins.