SSL Venture Capital sees big growth in net losses

to $116.8 million for the financial year under review.

This represented a decline of 65 per cent. For the financial year ended June 30, 2019 revenues amounted to $332.2 million. Forty-five per cent of core revenues were generated from the retail distribution segment for the year under review compared with 83 per cent for 2019.

OPERATING EXPENSES DOWN 5.3 PER CENT

There was some good news, though, as total operating expenses for the year decreased by $7.5 million, or 5.3 per cent to $139.7 million for 2020. This compares to the $147.1 million reported for the 2019 financial year.

The decrease was driven primarily by lower operational expenses brought about by efficiency improvements and improvements in governance and financial management.

Staff costs, legal and professional fees were areas where the group made significant improvements in costs control and elimination.

At the end of the 2020 financial year, SSL Venture Capital had $118.3 million in total assets, down $100.6 million or 54 per cent over 2019. This was mainly due to $47.3 million in deferred taxes and $45.9 million in receivables.

Total liabilities for the period under review was $350 million as against the $307 million recorded in the prior year. The major component of the liabilities was $270.9 million, due to the parent companies, Stocks & Securities Limited and SSL Growth Equity.

Total shareholders’ equity increased to a negative $231.6 million during the period under review as against $88.2 million in 2019.

PARENT COMPANY LIFELINE

The annual report recognised the support of the parent company. “The support of the parent company has been beyond spectacular in the last two years and without this continued support, the company will be challenged to meet existing obligations and to navigate these headwinds,” read a section of the annual report.

SSL Venture Capital noted that 2020 was a very eventful year, where the company, like many early-stage venture capital companies, faced many challenges.

Harding in his messages to shareholders stated, “Having stabilised the operations and looking to capitalise on our improvements, COVID-19 was upon the company and we were again forced against headwinds that knew no boundaries. The onslaught of the COVID-19 pandemic will put the year 2020 in the history books as the worse pandemic to have graced mankind since World War II.”