BVI Company Financial News

Deswell Industries, Inc., a manufacturing company incorporated in the British Virgin Islands, announced its financial results for the fourth quarter and year ended March 31, 2009.

For Q4 of the year, net sales made $27.4 mln, – a 13.2% decrease compared to the same period of 2008. The reason is the continuing decline of demand from the professional audio and instrument equipment market. Also, the company reported a decline in the operating income, which was $0.21 mln in the fourth quarter of 2009 compared to $0.65 mln in the same period of 2008.

In Q4 2009, net income was $0.59 mln ($1.04 mln in the quarter ended March 31, 2008). In this period, gross profit in the plastic segment decreased to 18.9% of net sales for the fourth quarter, from 21.4% of net sales in the same quarter of last year. This became mainly the effect of an increase in material cost. Gross margin in the electronic and metallic segment increased to 12.4% of net sales for the fourth quarter ended March 31, 2009, due to the decrease in raw materials cost and in labor cost due to headcount reduction.

For the year period ended March 31, 2009, Deswell reported net sales of $131.7 mln, – a decrease of 8.4% compared to $143.8 mln in 2008. Operating income decreased from $8.7 mln in the previous year to $0.75 mln this year. Net income decreased to $1.20 mln ($8.86 mln for the year ended March 31, 2008). In 2009, basic and diluted net income per share fell to $0.08, compared to $0.57 in the previous year. Company’s working capital totaled $51.6 mln as of March 31, 2009, compared to $54.8 mln as of March 31, 2008. Also, by the end of this year period the company has no long-term or short-term borrowings.

Emerging Metals Limited, a British Virgin Islands company focused on minor and emerging metals, announced its financial results for the year ended 31 March 2009. According to the published information, equity shareholder funds increased by 93% compared to the year 2008 and made GBP26,652,271.

During the year 2009, the BVI corporation acquired 8.04 per cent stake of Kalahari Minerals Plc and  0.17 per cent of Extract Resources Limited; holdings in both these companies valued at GBP17,627,774 – 139% rise against a purchase price of GBP7,368,281. Non-current assets valuation in 2009  increased to GBP5,319,860 (2008: GBP4,818,455); current assets valuation increased to GBP21,392,111 (2008: GBP9,092,516).

Emerging Metals reported net profit for the year 2009 in the amount of GBP10,005,933 (loss of  GBP1,498,576 compared to the previous year). Cash reserves remained at  GBP3,757,960 – a 59% decrease. The BVI company also reported an interest income of GBP266,423 – an increase of 53%. Operating expenses made GBP973,230. This was the first year of company’s listing on AIM.