Endeavour Holdings Limited suffered a $14M dip in revenue following MovieTowne’s decision to leave Price Plaza, but has still managed to turn a profit for the financial year 2021.
Chairman John Aboud confirmed in the company’s annual report that EHL recorded net profit after tax of $4.4M compared to $6.4M in 2020.
He said company experienced the full effects of the COVID-19 pandemic with the government’s restrictions affecting business operations of their tenants.
Aboud said, “These restrictions significantly affected our primary tenants in Price Plaza Mall where our tenant pool comprises of restaurants, fast food outlets, bars, casinos and the cinema (amongst others). In-keeping with the policy adopted by EHL in the 2020 Financial Year, we extended concessions where possible to those tenants whose businesses were severely impacted by the restrictions with rental discounts in the amount of $12.6M having been granted to various tenants at Price Plaza Mall.”
He confirmed MovieTowne’s departure in October 2020, after negotiations over rent broke down, adversely affected EHL’s revenue stream.
“In addition to the impact of COVID-19 on business in the country, EHL’s revenue for the 2021 Financial Year was also impacted by the loss of revenue from Trinbago Commercial Development Company Limited, the operators of MovieTowne, who vacated Price Plaza Mall in October 2020,” said Aboud, “The Company’s net revenue was impacted by the factors mentioned above, and resulted in a decline of $14.6M from $86.7M in 2020 compared to $72.1M in 2021.”
Aboud also noted the company’s performance included negative adjustments of the valuations of EHL’s investment property portfolio in the aggregate sum of $26.4M for 2021 and $26.2M for 2020.
The EHL chair explained the negative adjustment was made as a result of the impact on fair values based on the anticipated discount on EHL’s future cash flows from the ongoing Covid-19 pandemic, with the most significant adjustment being made to the valuation for Price Plaza Mall.
Aboud said, “EHL considers that it is worthwhile noting its profits excluding the non-cash negative property valuation adjustments, which were $30.8M in 2021 compared to $32.6M in 2020.”
He also stated the company’s asset base was still strong, as it was valued at $865.7M in 2021 compared to $887.4M in year 2020.
Aboud was optimistic about the company’s outlook going into 2021, pointing out the company retained its Cari A + rating on its Bonds portfolio from Caribbean Information & Credit rating Services Limited (CariCRIS). He also took note of the country’s vaccination efforts.
“With the number of vaccinated persons continuing to increase and the Country moves closer to achieving herd immunity, EHL remains optimistic that the Country will return to some level of normalcy over the course of this coming year. While we are not totally out of the storm, we have survived the worst of it and therefore even in a slowly recovering economy, we hope to continue to improve our financial position,” he said.