Higher expenses of 138% hit First Rock’s 2020 profitability

Real estate and private equity company First Rock saw its 2020 profitability hit by higher expenses, which went up by a whopping 138 per cent, and foreign exchange losses.

In spite of this the company managed to eke out a net profit of US$3.68 million for 2020, up from the US$756, 734 posted in 2019. Net profit for the December quarter amounted to US$1.30 million, up from the 2019 posting of US$472, 596.

Shareholders’ profit for 2020 amounted to US$3.69 million coming from US$756, 354 in 2019. Profit attributable to shareholders for the December quarter was US$1.30 million compared with the US$472, 596 posted in 2019.

Administrative and general expenses closed the year at US$2.82 million coming from the 2019 posting of US$1.18 million, a 138 per cent increase.


For the twelve months ended December 31, 2020, First Rock grew its investment income by more than 250 per cent to US$7.44 million coming from US$2.06 million in 2019. The breakdown of the investment income is as follows:

• Rental income amounted to US$412, 177 (2019: US$80, 195).

• Realised and unrealised gains on investments totalled US$5.50 million versus US$1.22 million reported in 2019.

• Interest income closed at US$1.54 million (2019: US$326, 802) for the period under review.

• Dividend income amounted to US$25,541 (2019: nil)

• Loss on foreign exchange amounted to US$432,440 versus a gain of US$420, 954 booked in 2019.

• Gain on acquisition of subsidiary totalled US$188, 843 (2019: nil).

• Other income for the twelve months amounted to US$204, 249 (2019: US$16, 600).

As for the December quarter, First Rock booked total investment income of US$2.64 million compared to US$1.07 million recorded for the corresponding period in 2019.

Total operating expenses amounted to US$3.74 million coming from US$1.31 million in 2018, of which the biggest jump of 138 per cent came from administrative and general expenses. Depreciation grew to US$103, 990 coming from US$1, 329 in 2019, while preference dividend amounted to US$602, 068 coming from US$121, 765 in 2019.

Allowance for credit losses was up, to close at US$213, 386, while no allowance was booked for 2019.

Investments went up more than 300 per cent, while for the fourth quarter, total operating expenses closed at US$1.33 million coming from US$602, 104 in 2019. Total comprehensive income for 2020 amounted to US$3.67 million, up from the 2019 amount of US$711, 845, representing a more than 300 per cent growth.

Total comprehensive income for the December quarter closed at US$1.33 million, coming from $421, 485 for the corresponding period in 2019. As at December 31, 2020, total assets closed at US$36.94 million (2019: US$16.17 million).

This increase is primarily due to the value of ‘investment property’ which amounted to US$19.77 million (2019: US$9.68 million). Investment securities also contributed to the increase, which closed at US$9.13 million (2019: US$4.34 million) as at December 31, 2020.