- Real estate company Sietel (SSL) has increased profits by over 30 per cent for the half-year ending March 31, 2020
- The company pulled in almost $7 million in half-yearly revenue and $1.27 million in half-yearly profits
- However, Sietel said despite these strong figures, the coronavirus has had an impact on company operations
- Rent assistance requests from some tenants and longer periods of un-occupancy are expected to impact revenue over the next six months
- Shares in Sietel are in a trading halt today but last closed worth $6.40 each
Real estate company Sietel (SSL) has bolstered its profit by over 30 per cent for the half-year ending March 31, 2020.
The company released its half-yearly report today in which it highlighted the 31 per cent net profit after tax (NPAT) increase — standing at $1.27 million at the end of March compared to the $972,000 over the same period the year before.
The profit bump was supported by a 27 per cent increase in half-yearly revenue, which came in a $6.69 million this year compared to $5.28 million over the previous corresponding period.
However, the increase in revenue and profit does not mean the company has been unaffected by the COVID-19 crisis.
In fact, Sietel said the pandemic led to a significant markdown of the company’s financial assets, which are down by $7.75 million compared to their value at the end of September 2019.
Subsequently, the company is expecting to lower the value of its September dividend this year.
Sietel is a relatively quiet company on the ASX, with only eight million total shares on issue and a $51 million market cap. As such, the company did not reveal until today how badly it had been affected by the virus.
As it stands, Sietel said the virus has had both a direct and indirect impact on company operations.
Directly, some of the company’s tenants have applied for government-legislated rent relief in the face of the pandemic. Sietel expects this to impact rental income by six per cent over the six months ending September 2020.
Indirectly, the virus is expected to bring about longer periods of un-occupancy when leased properties come up for renewal, according to Sietel.
Nevertheless, as at the end of March 2020, the company had $5.1 million in current assets and $69 million in non-current assets.
Shares in Sietel are in a trading halt today, so it is not yet certain how shareholders will react to today’s news. Shares last closed worth $6.40 on Friday afternoon, just 5.9 per cent lower than before COVID-19 struck.