Polaris Report Six Month Financial Results

November 7, 2017

In a filing with the Bermuda Stock Exchange [BSX], Polaris Holding Company Limited reported its financial results for the six months ended September 30, 2017.

The filing stated: “On November 6, 2017 Polaris Holding Company Ltd., parent company to Stevedoring Services Limited reported its financial results for the six months ended September 30, 2017.

“Polaris reported profits of $1.15 million or $0.97 per share [September 30, 2016 - $647K or $0.55 per share].

“Dividends, which increased by 20% at the start of fiscal 2017, rose a further 33% in fiscal 2018, with shareholders benefiting from a $0.08 per share distribution in each of the first two quarters.

“Having shed its debt at the end of fiscal 2017, Polaris entered the current year free of that long-term burden and the associated interest costs, with the Company holding $2.79 million in cash and cash equivalents as at September 30, 2017.

“While the current year’s operating success pushed cash north, the Company continued to re-invest in the future. Capital spending by the end of fiscal 2018 is forecasted at $3.2 million according to CEO Warren Jones.

“During the six month period, Stevedoring Services handled 20,460 twenty-foot equivalent container movements, with volumes up 8.5% from the prior year’s first half. In addition, break bulk and loose cargo, which had seen a steady climb in the previous two years, exploded during the first six months ended September 30, 2017, up 67.9% vs. the prior period.

“The America’s Cup and the associated volume of boats, team equipment, containers and personal contents from the hundreds of team and family members who relocated to Bermuda had a profound effect on cargo volumes and Polaris’ financial success. Outbound cargo similarly added to Stevedoring Services’ first half volume increase.

“The stevedoring company did more than facilitate cargo flow, with Stevedoring Services active outside of the port including its management of the superyacht marina temporarily stationed in Hamilton during the event.

CEO Warren Jones was asked, now that the windfall of America’s Cup is behind it, if Polaris can continue the fast-paced growth that added $2.83 million in equity to the Company’s balance sheet during the two and a half year sprint.

He said, “Do I anticipate that the second half of fiscal 2018, or even fiscal 2019, will produce revenue and profits like enjoyed during this first half – no; however, we would not be investing $3.2 million in heavy equipment, implementing a complex and costly computerized terminal operating system, and continuing a robust overseas training and certification process for our team if we didn’t think this business had legs. I am confident of Polaris’ future success.”

“On October 19, 2017, Stevedoring Services’ dockworkers ceased unloading non-essential goods as part of a three day industrial action related to the termination of a member of staff. The Bermuda Industrial Union and Polaris agreed to voluntary arbitration, quickly putting an end to the first in-house industrial action Polaris has faced in 4 years.”

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  1. Ringmaster says:

    Good news for Polaris and its staff. They benefited from AC35. Government, where is the PwC Financial Impact Report? Is the news too positive to release that certain Ministers who have made derogatory comments about AC35 will be shamed?