ssl venture capital jamaica ltd unaudited ... ... page 2 unaudited unaudited unaudited unaudited...

Click here to load reader

Post on 06-Jul-2020

1 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • SSL VENTURE CAPITAL JAMAICA LTD

    UNAUDITED FINANCIAL STATEMENTS

    NINE MONTHS ENDING 31ST MARCH 2020

  • REPORT TO OUR STOCKHOLDERS

    FOR THE THIRD QUARTER ENDING MARCH 2020

    SSL Venture Capital Group comprises two active portfolio companies and one inactive company

    for the nine months ending March 2020. Blue Dot, (Data Analytics Segment) with a stake of

    50%, Bar Central Limited (Distribution Segment) with a stake of 75% and Muse 360 (Marketing

    Segment) with a stake of 51% respectively.

    For the nine months ending March 2020, the group incurred losses totalling $71.78M which were

    primarily caused by the decline in Revenues from both the Distribution and Marketing Segments.

    REVENUES

    For the period ending March 2020, the Group generated revenues of $112M when compared to

    $342M for the nine months ending March 2019, a decline of 67%, year over year. A drastic

    decline in revenue from Bar Central Jamaica Ltd (BCL) and Muse 360 Integrated Limited (Muse)

    accounted for the shortfall. BlueDot Data Intelligence, however, recorded an increase in revenues

    for the period.

    BCL’s year over year revenue decreased by $193M, primarily due to management and working

    capital issues. Muse’s year over year revenue fell by $42M, with the company being mothballed

    since August 2019 following the resignation of the former CEO and the entire staff. We are

    evaluating the way forward for this company.

    EXPENSES

    Administrative & Operational Expenses year to date for the group were $106M. We incurred

    finance costs and other related expense of $11M bringing overall expenses to $117M, a $30M

    reduction compared with the prior year’s figure of $147M. The expenses even though lower than

    prior year, remains high mainly due to approximately $45M in costs incurred during the second

    quarter of 2019 to resolve governance and financial management issues to allow for the lifting

    of the suspension of the company shares and for trading to resume on the Jamaica Stock

    Exchange. The Group will continue to monitor the expense line to reduce and maximize

    efficiencies across the group wherever possible.

  • STATEMENT OF FINANCIAL POSITION

    The group ended the quarter with negative equity of $117M which was primarily due to losses

    incurred to date. The company received funding from its Parent company to provide working

    capital support during the period. The Parent company will continue to provide funding to the

    company as needed until new external funding can be sourced.

    NEW DEVELOPMENTS

    On March 27, 2020, SSL Venture Capital Jamaica Limited (SSLVC) entered into an agreement

    with the Founder and CEO of Blue Dot to sell its 50% stake in the company. The Board and

    Executive Management of SSLVC considers this sale a strategic decision which is aligned with

    the new direction of the group and the plans to improve shareholder value by re-aligning the

    business for greater efficiency, management, and profitability. The full impact of the Blue Dot

    sale has been accounted for in the quarter ending March 2020.

    Bar Central Limited (BCL) was also restructured during the period under review and a new

    management team was hired with Mr. Nigel Bair as General Manager and Mr. Nicholas McDavid

    as Sales, Marketing and Promotions Manager. Both individuals are very experienced in the

    beverage and liquor distribution business and the FMCG sector.

    OUTLOOK

    In 2019, the brand of SSLVC took a heavy beating when the stock was suspended from trading.

    A robust marketing and PR strategy were developed to reposition the brand and align it with a

    new direction focusing on the new team and new strategic direction. The board has approved a

    name change for the company and will be requesting approval of the new name by the

    shareholders at the next AGM.

    The company has not yet set the date for the AGM due to the restrictions placed on the number

    of persons that can gather in one place. A date for the Meeting when finalized by the board will

    be communicated to shareholders as soon as possible.

    New opportunities are being evaluated on an ongoing basis, and where there is an alignment of

    goals and objectives, management will only consider those opportunities that will accrue real

    tangible benefits to the group from which shareholder value can be unlocked. In keeping with

  • these objectives, it is managements intension to raise additional proprietary capital to invest in

    these opportunities as they arise.

    COVID-19

    COVID-19 has negatively impacted performance for the remainder of the year especially in the

    distribution segment. Our strategy is therefore focused on assessment, containment, risk

    management, divestment, social distancing, remote operations and use of technology in no

    preferred order. With the recently completed alignment and repositioning of the group, it is

    expected that the full impact of the COVID-19 pandemic will smooth out over time and that the

    group will come out on the other side, a much stronger and stable organization.

    SSL Ventures would like to thank our Directors, Shareholders, Portfolio CEO’s, Stakeholders,

    and everyone who continue to make SSL Venture’s mandate to “Fund, Grow and Lead

    Jamaica” a reality.

    __________________________

    Zachary Harding Jeffrey Cobham

    CEO Chairman

  • PAGE (S)

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2

    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 3

    CONSOLIDATED STATEMENT OF CASH FLOW 4

    COMPANY STATEMENT OF FINANCIAL POSITION 5

    COMPANY STATEMENT OF COMPREHENSIVE INCOME 6

    COMPANY STATEMENT OF CHANGES IN EQUITY 7

    COMPANY STATEMENT OF CASH FLOW 8

    NOTES TO THE FINANCIAL STATEMENTS 9 - 22

    TABLE OF CONTENTS

    SSL VENTURE CAPITAL JAMAICA LTD

    UNAUDITED FINANCIAL STATEMENTS

    NINE MONTHS ENDING 31ST MARCH 2020

  • Page 2

    Unaudited Unaudited Unaudited Unaudited Audited

    Quarter Quarter Nine Months Nine Months

    31-Mar-20 31-Mar-19 31-Mar-20 31-Mar-19 30-Jun-19

    $ $ $ $ $

    Notes

    Revenues 15 16,720,282 93,596,270 112,022,436 341,764,394 332,267,569

    Cost of Sales (15,617,161) (85,799,082) (100,905,614) (313,424,986) (275,867,539)

    Gross Profit 1,103,121 7,797,188 11,116,822 28,339,408 56,400,030

    Other Income 16 34,136,042 532,841 34,487,692 36,049,741 20,100,728

    Administrative expense 18 (26,215,087) (43,929,484) (105,919,537) (145,779,923) (148,886,519)

    Operating Profit/Loss 9,024,076 (35,599,455) (60,315,023) (81,390,774) (72,385,761)

    Finance Costs, net (4,455,044) (11,570) (11,469,872) (1,135,918) (4,502,996)

    Profit/Loss before taxation 4,569,032 (35,611,025) (71,784,895) (82,526,692) (76,888,757)

    Taxation (1,523,011) 11,870,342 23,928,298 27,508,897 31,293,869

    Profit/(Loss) from continuing operations 3,046,021 (23,740,683) (47,856,597) (55,017,795) (45,594,888)

    Loss on discontinued operation, net of tax 17 (8,385,492) - (8,385,492) - -

    Net Loss (5,339,471) (23,740,683) (56,242,089) (55,017,795) (45,594,888)

    Net loss Attributable to:

    Stockholders of the Company (4,222,716) (16,678,953) (49,267,382) (43,390,236) (35,958,783)

    Non-Controlling interest (1,116,755) (7,061,731) (6,974,707) (11,627,559) (9,636,105)

    Loss per Stock Unit 19 (0.01) (0.06) (0.14) (0.14) (0.11)

    SSL VENTURE CAPITAL JAMAICA LTD

    UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

    NINE MONTHS ENDING 31ST MARCH 2020

  • Number of Shares Share Capital Preference

    Shares Capital Reserve Accumulated

    (

View more