This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
West Hamilton Holdings Ltd – Financial results for the year ended 30 September 2019
Hamilton, Bermuda —10 December 2019 – In a filing with the Bermuda Stock Exchange (“BSX”), West Hamilton Holdings Ltd(Ticker: WHHL.BH)announced financial results for the year ended 30 September 2019. The filing stated:
West Hamilton Holdings Limited is pleased to announce its financial results for the year ended 30 September 2019 and the declaration of a dividend.
Highlights of results for the year:
Income Statement
The Company’s operating income for the year ended 30 September 2019 was $1.7 million (2018: $1.4 million) which is the highest reported operating income for the Company since inception.
Total revenue for the period was $3.2 million (which is marginally above last year (2018: $3.1 million) and operating expenses before interest were $0.9 million (2018: $0.9 million). During the year the Company generated cash from operations of $2.3 million which was used for building renovations, the partial repayment of the bank loan facility and loan interest for the year. During 2019 the Company invested $0.2 million in the maintenance and upgrade of the Company’s property assets.
The Board of Directors is pleased to announce that they have approved a dividend of $0.15 per share which will be paid on 30 January 2020 to shareholders of record on 6 January 2020. This dividend represents an increase of 50 per cent per share compared to 2018. The increase in the dividend is the result of improved free cashflow.
Change in accounting standards
During the year the Company adopted a new accounting standard whereby the value of the Company’s property assets is now valued at fair value as opposed to depreciated cost basis. The Board of Directors believe that the new accounting policy better reflects the value of the Company’s assets. As such, the Company has had to restate its 2018 financial statements and determine the fair value of the property assets for the years ended 30 September 2018 and 30 September 2019 respectively.
The fair value of the Company’s property assets was determined by an independent property valuer. For the year ended 30 September 2018 the Company has determined that the fair value was $54.3 million and for the year ended 30 September 2019 the Company has determined that the fair value was $44.0 million.
As a result of the change in accounting standard and the corresponding requirement to reflect a reduction in fair value of our property assets, the Company has recorded a loss for the year ended 30th September 2019 of $8.8 million (2018: loss of $3.7 million).
Balance Sheet
The Company reported Shareholders’ equity as at 30 September 2019 of $34.8 million (2018: $43.6 million).
Current assets, which include cash and other assets that could readily be converted into cash, totaled $2.0 million as at 30 September 2019 compared with $1.7 million as at 30 September 2018.
Book value per share at 30 September 2019 was $11.96 (2018: $14.98).
Michael Collier, Chairman of the Company said, “2019 has been another successful year for West Hamilton. We continue to have high occupancy rates at all our property assets and benefit from our prime location in Hamilton. This is reflected in our strong financial results, in particular our cash generation, and the Board was delighted to recommend an increase to the Company’s dividend by 50%. The commercial property market in Bermuda remains challenging and as such the Directors have taken the decision that it would not be prudent to look to further develop our property assets at this stage. However, we remain ready to move forward as and when the market dynamics change for the positive.”