Polaris suffers half a million dollar loss
Polaris Holding Company Ltd., parent company to Stevedoring Services Limited and East End Asphalt Company Limited, has reported more than a half million dollar loss for the 2021 fiscal year ended March 31.
Polaris reported year-end losses of $511 thousand or $0.43 per share for the 12 months, compared to a $168-thousand profit ($0.14 per share) for fiscal 2020.
The company said both Stevedoring Services and East End Asphalt lost money for the year.
A statement said the results reflected the economic depression caused by Covid-19, and an associated deferment of East End Asphalt projects, with many of the division’s large contracts pushed into fiscal 2022.
A Polaris statement said: “As a result of soft cargo volumes, and changes in the business model, Stevedoring Services shed over $700 thousand in annual expenses in fiscal 2021.
“That shift, coupled with pent up demand and a solid pipeline of work through fiscal 2022 for East End Asphalt, should position Polaris back into profitability going forward.
“Fiscal 2021’s island wide financial collapse, and Bermuda’s slow and contorted recovery is well captured by the year over year deviations in the country’s ocean freight container volumes.
“Stevedoring Services reflected revenue of $10.80 million for the year, down 9.0 per cent from the prior year’s $11.87 million, with twenty-foot equivalent container volumes (TEUs) slipping from 37,532 in fiscal 2020, to 34,331 TEUs in fiscal 2021.
“Breakbulk cargo, which includes construction material, equipment, vehicles and other components, reflected a 15.2 per cent decline year over year.
“Despite the hardship, through cost containment and a growth in second half’s volumes, Stevedoring Services reflected a stable and profitable final six months.
“Year over year TEU and breakbulk cargo volumes grew in the second half, relative to fiscal 2020, by 5.9 per cent and 11.4 per cent, respectively. East End Asphalt similarly reflected a second half improvement.”
The company said: “Despite the year’s $511-thousand loss, consolidated operating results for the six months ended March 31, 2021 reflected a $316-thousand gain, with profitability anticipated to continue.”
In June 2021 Polaris re-established its dividends, issuing a payment of $0.08 per share to shareholders of record as at June 30, 2021.