Profit statements

Endeavor Holdings Reports $ 1 Million Drop in After-Tax Profit

Business



Endeavor Holdings Chairman John Aboud. – PHOTO BY ROGER JACOB

Endeavor Holdings Ltd announced a decline in after-tax profit of $ 1.1 million for the six-month period ending October 31, 2021.

In his unaudited financial statements released on Friday, President John Aboud said that during the period, the second wave of covid19 infections, which resulted in restrictions, a curfew and a lockdown, significantly affected its operations.

“It continues to have an impact on the financial performance of the company. Profit after tax increased from $ 12 million in October 2020 to $ 10.9 million in October 2021, mainly due to net rental income of $ 24.3 million in 2020 to $ 21 million in 2021.

He said there had been a slight reduction in rental spending and continued efforts were made to reduce rental costs and discounts in 2021.

Administrative expenses edged up to $ 835,723 in 2021, while operating expenses decreased by $ 1 million due to lower bad debt provisions in 2021, he said.

Aboud pointed out that the company’s corporate tax rate was zero percent due to changes to the 2020 finance law for listed small and medium-sized enterprises (SMEs).

“As a result, the current taxation is $ 358,000 in 2021 compared to $ 1.04 million in 2020. Non-current assets decreased by $ 26 million mainly due to the depreciation of investment properties which amounted to $ 26.4 million at the end of April 2021.

“The decrease of $ 7.4 million in current assets consisted of a decrease in accounts receivable of $ 1.1 million and $ 6.4 million in cash due to the payment of the obligation payment.” . “

Aboud said there was also a decrease in current liabilities of $ 11.4 million, mainly due to the cancellation of accumulated property taxes of $ 8 million and a reduction in tax to pay $ 2.9 million due to the new zero percent tax rate for SMEs.

He said the pandemic continued to negatively affect the continuity of local businesses, but hoped the government would reopen other sectors of the economy soon.

“A complete reopening of the local economy will allow our tenants to resume normal activities, and management therefore remains optimistic, based on current trends, that there is a light at the end of the tunnel.”