Inovest reports Q1 results

Inovest yesterday reported a consolidated net profit attributable to parent shareholders of US$3.02 million in the first quarter, representing a 1 percent increase as compared to US$2.99m for the same period of last year. Earnings Per Share attributable to the equity shareholders of the parent company was US cents 1.07 as compared to US cents 1.06 for the same period in 2018.

Consolidated net operating profit declined by 17pc from US$2.98m to US$2.47m due to an increase in operating expenses as well as a decrease in revenue from the Group’s contracting activities, a natural repercussion of having recently completed and wrapped up works on a major government construction contract. Operating income increased by 10pc, reaching US$5.75m in comparison to US$5.21m for the same period of 2018 as a result of income from real estate investments, which surpassed the Group’s comparative decline in contracting revenues.

Operating expenses saw an increase of 47pc, standing at US$3.27m in the first three months of 2019 in comparison to US$2.23m for the same period of 2018. The increase stems from the aforementioned completion of a major government project, warranting the reclassification of labor expenses within the Group’s contracting arm from a project level cost to an operational level until works begin on new construction projects.

Equity Attributable to Parent Shareholders declined slightly by 2pc to stand at US$133.77m at the end of the of March 31st, 2019 in comparison to US$136.53m at the end of 2018. The decline is the result of a recently announced dividend payout to shareholders.