Polaris’ Holding Revenue Down $1.57 Million
Polaris’ revenue in the first half ended September 30, 2020 was down $1.57 million from the prior year’s top line with the company noting that cargo volumes were down significantly as the virus ”delivered a brutal punch to Bermuda.”
This is according to a filing with the Bermuda Stock Exchange [BSX] where Polaris Holding Company Limited reported its financial results for the six months ended September 30, 2020.
The filing stated: “On 10 November 2020, Polaris Holding Company Ltd. [Polaris], parent company to Stevedoring Services Limited and East End Asphalt Company Limited reported its financial results for the six months ended September 30, 2020. Polaris reported losses of [$727K] or [$0.61] per share [September 30, 2019 - $405K or $0.34 per share].”
CEO Warren Jones noted, “Polaris started fiscal 2021 in the throes of the most abrupt economic slowdown in Bermuda’s history, with the island sheltering in place during the first month of this fiscal period.
“As a result, that month’s year over year twenty-foot equivalent [TEU] cargo volumes started down [34%] in April, and loose freight cargo was down [94%].
“Subsequently volumes have improved somewhat; however, for the six months, TEUs were down [21%] from prior year, and loose break bulk cargo was off [40%]. The virus has delivered a brutal punch to Bermuda, and is reshaping how Stevedoring Services, East End Asphalt, and Polaris operate.”
The filing stated, “Polaris’ revenue in the first half ended September 30, 2020 was $6.35 million, down [$1.57 million] from prior year’s top line of $7.92 million. Stevedoring Services’ revenue fell [$1.49 million] or [23%], while East End Asphalt’s revenue slipped [$90K] or [7%].
“To mitigate the [$1.57 million] drop in revenue, in fiscal 2021, through to fiscal 2022, Stevedoring Services has implemented fundamental cost cutting, with spending forecasted to be streamlined [30%] by next year, primarily through the attrition of retiring staff. The aim is to return the stevedoring company to modest profitability by the end of fiscal 2022.
“East End Asphalt was anticipating a strong first half. The pandemic resulted in customers deferring or scrapping numerous large projects; however, the second half of fiscal 2021 is anticipated to reflect growth, as these delayed jobs get reinstated. With other paving contracts materializing, and the division regaining its momentum, East End Asphalt is one of few companies on island now in hiring mode.
“By year-end, Polaris’ bottom line is hoped to improve, but fiscal 2021 will almost certainly reflect a 12 month loss, with a return to profitability in fiscal 2022. The Company deferred its dividends in June and September 2020, and is not anticipated to reinstate dividends until fiscal 2022.”
