Hamilton, Bermuda, September 25, 1998
The Directors of Masters Limited today reported half year financial results for the Company.
For the six months ended July 31st, 1998 net profits amounted to $376,909 compared to profits of $53,317 for the same six month period a year ago. This increase in earnings of $323,592 is directly attributable to the expanded retail facility that opened in June 1997. Whereas the current profits reflect a full six month result period of operating the remodeled facility, the 1997 comparative period only contained about a six week period of the completed renovations. Indeed, the 1997 results also had the added burden of a construction period of the first half of that year.
Net sales for 1998 to July 31st, 1998 amounted to $5,349,425 as compared with $4,179,366 for the previous period last year. This represents an increase of $1,170,059, i.e. an increase of 27.9%.
Gross margin on sales for the period amounted to $1,976,574 as compared with $1,465,366 for the previous period last year. This represents an increase of $511,208, i.e. an increase of 34.8%.
Expenses for the first half of the current financial year amounted to $2,139,529 compared with $1,864,335 for the same period last year. This increase of $275,200 in expenses i.e. 14.8%, is due to the additional costs incurred in respect to the expanded facility.
There are preliminary indications that the world economies are weakening quickly
and the ripple effect on Bermuda and therefore consumer discretionary spending is yet to be felt.
A summary of the balance sheet as at July 31st, 1998 showed that the current assets of the company increased from $5,251,351 in July 31st, 1997 to $5,380,887 in July 31st, 1998. Similarly, fixed assets also increased from $14,768,361 to $15,221,680, while the total liabilities of the company decreased from $4,355,277 to $3,962,948. Shareholder equity increased from $10,413,084 to $11,258,732 during the same time period.
A summary of the income statement for the six months ended July 31st, 1998 also revealed positive results. Sales for the company increased from $4,179,366 in July 31st, 1997 to $5,349,425 in July 31st, 1998. In addition, rental and other income increased from $452,076 in 1997 to $539,864 in 1998 while operating expenses increased from $1,864,335 in 1997 to $2,139,529 in 1998. Net income for the period increased from $53,317 in 1997 to $376,909.
The Board of Directors today declared a dividend of $0.10 per share to shareholders of record as at October 31st, 1998 and payable on November 15th, 1998, which taken together with the dividend of $0.10 per share paid in April, 1998 will total $0.20 per share for the current financial year.
Susan D. Wilson, C.A.
President