Although GWest Corporation Limited was able to record a net profit of $22.19 million after a 12 per cent decline in revenue to $113.10 million, the company disposed of $132.29 million in investment properties and failed to materialise positive operating cash flow for its 2021 financial year ending March 31.

The company, which provides medical services and leases space at the GWest Centre in Fairview, Montego Bay, saw its medical services segment drop by 36 per cent to $48.28 million as the pandemic and associated restrictions limited the use of its services. However, a 21 per cent rise in lease rental revenue to $64.82 million contained the fallout from the drop in its core income earner.

GWest medical services consists of a general practitioner and specialist suite of services, a medical laboratory, an urgent-care centre, in-patient unit, and outpatient surgery centre. With cost of sales remaining flat, Gwest’s gross profit totalled $77.67 million.

GWest’s other income fell by 61 per cent to $5.05 million as the administrative fees it earns on the provision of management services to the strata fell to $4.8 million. However, the other gains and losses segment of its income statement experienced an 85 per cent boost to $94.26 million as it recorded a $101.46-million fair value gain on its investment properties.

GWest had its investment properties revalued in March, which resulted in the substantial gain. This also benefited the company as it recorded a $2.85 million gain on disposal of its investment properties, while it recorded a larger foreign exchange loss of $10.06 million.

GWest’s administrative expenses declined by 19 per cent to $54.92 million, while its other operating expenses fell by 16 per cent to $82.03 million. Finance costs declined by 18 per cent to $37.11 million as the preference shareholders waived interest charges, while the company’s National Commercial Bank loan declined to $224.13 million. This left GWest with a $2.92-million profit before tax, in contrast to a $53.90-million loss before tax. A tax credit of $19.26 million left the company’s bottom line at $22.19 million, with earnings per share of $0.05.

Total assets declined by 6 per cent to $1.60 billion, which was largely attributed to current assets falling by 31 per cent to $253.41 million. Its cash balance stood at $4.16 million with non-current assets at $1.35 billion. GWest’s cash outflow from operations was $16.20 million, with financing activities yielding an outflow of $45.47 million. Only its cash flow from investing activities brought in $66.29 million due to the investment property sale. Total liabilities fell by 12 per cent to $911.27 million due to the reduction in its borrowings and trade payables. Shareholders equity improved by 3 per cent to $690.24 million.

GWest began construction of its ambulatory surgical centre and overnight patient units which it expects to be completed by the end of the second quarter (July – September) and increase revenue. GWest also noted that there has been continued enquiries about its investment properties and looks forward to improved occupancy levels. GWest owned 37 units at the time of its December 2017 initial public offering, where it raised $400 million. With Corn-Med Pharmacy being acquired by Medical Disposables and Supplies Limited, there might be additional units utilised by the pharmacy. GWest’s urgent-care unit was registered by the Ministry of Health and Wellness, which allowed it to begin accepting health insurance at the start of the novel coronavirus pandemic.