26th Jul 2018 13:07
LONDON (Alliance News) - Myanmar Strategic Holdings Ltd on Thursday said its loss narrowed in its recently ended financial year helped by reduced expenses and strong performance in its Education unit.
The stock was trading 26% higher on Thursday at USD12 per share.
The developer and operator of consumer-focused businesses in Myanmar floated on the main market of London Stock Exchange in late August last year, after raising USD22.7 million.
The company said its loss narrowed in the year to the end of March to USD2.1 million from USD2.4 million loss made a year earlier, as revenue more than doubled to USD791,870 from USD330,074.
Myanmar Strategic managed to reduce its expenses, which exclude costs related to the listing application, to USD1.1 million from USD1.7 million the prior year.
In the Hospitality division, the company generates revenue through the fees from the operations it manages.
The four hostels under management generated underlying revenues of USD1.7 million over the year with fees to the Myanmar Strategic totalling USD180,000, down from USD227,000 secured a year earlier.
In financial 2018, properties sold within the division amounted 84,824 beds, up 66% from 51,154 sold the prior year. However, revenue per bed declined to USD19.8 from USD24.2.
Turning to the Education division, the Wall Street English business generated contracted sales of USD2.4 million with fees and royalties to Myanmar Strategic of USD611,870, multiplied from USD93,074 generated a year earlier.
"The results clearly highlight the substantial progress the group has made in developing the scale and breadth of its Myanmar-focused businesses," said Chief Executive Enrico Cesenni.
"We are confident that our growth strategy, focusing on opportunities for expansion in sectors addressing the consumer's primary needs, will not only provide value to our shareholders but also clearly benefit the local Myanmar economy and business environment," added Cesenni.
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