Endeavour Holdings Ltd has reported a decline in profit after tax of $1.1 million for the half-year period ending October 31, 2021.
In its unaudited financial statements released on Friday, chairman John Aboud said during the period the second wave of covid19 infections, which led to restrictions, a curfew and a lockdown affected its operations significantly.
'This continues to impact the financial performance of the company. Profit after tax decreased from $12 million in October 2020 to $10.9 million in October 2021 primarily as a result of net rental income from $24.3 million in 2020 to $21 million in 2021.'
He said there has been a small reduction in rental expenses and continued efforts were made to reduce costs and lower rental discounts in 2021.
Administrative expenses increased marginally to $835,723 in 2021, while operating expenses decreased by $1 million owing to lower provisions for bad debts in 2021, he said.
Aboud pointed out that the company's corporate tax rate was zero per cent because of the amendments made to the Finance Act of 2020 for listed small and medium enterprises (SMEs).
'As a result, current taxation is $358,000 in 2021 as compared to $1.04 million in 2020. Non-current assets decreased by $26 million mainly due to write-down of investment properties which was at $26.4 million at year-end April 2021.
'The decrease of $7.4 million in current assets consisted of decreases in receivables of $1.1 million and $6.4 million in cash due to payment of the bond instalment.'
Aboud said there was also a decrease in current liabilities of $11.4 million, primarily because of the reversal of property-tax accruals of $8 million and reduced in taxation payable of $2.9 million because of the new zero per cent tax rate for SMEs.
He said the pandemic continued to negatively affect the continuity of local business but was hopeful the Government would reopen other sectors of the economy soon.
'A full reopening of the local economy will enable our tenants to resume their normal operations, and management therefore remains optimistic, based on the current trends, that there is indeed a light at the end of the tunnel.'
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