Pulse Investments Records Higher Net Profit For 2020FY

• Pulse Investments Limited’s audited net profit for the financial year ended June 30, 2020, grew 28.6% (or $187.13Mn) year over year to $840.36Mn (EPS: $0.13).
• Net profit growth was supported by a 9.4% (or $58.19Mn) and 32.7% (or $143.87Mn) increase in revenues and other income, respectively. However, a 5.0% (or $18.79Mn) rise in administrative and other expenses, as well as a 99.0% (or $6.30Mn) increase in finance cost moderated the overall impact of income growth on Pulse’s bottom-line.
• Despite the strong full-year performance, the pandemic has affected Pulse’s international model agency commission, rooms business, and Caribbean Fashion week’s live staging, which caused a reduction in income for the fourth quarter.
• However, with those revenue streams representing just over 10% of the company’s business and the greater portion of the financial year unaffected by the novel Coronavirus, there was no significant impact on the 2020 financial statements as there was reduced cost and increased income and profit from other areas such as media as well as gains on an investment property.
• The company’s stock price has declined by 35.7% since the start of the year, closing Tuesday’s trading session at $3.86. At this price, the stock currently trades at a P/E of 29.7x earnings, which is above the Main Market Industrials and Materials Sector Average of 20.9x.

(Source: PULS Financials)