May 18, 2018
At tTech Limited’s first investor briefing for the 2018 financial year, t-tech’s Chief Executive Officer, Mr. Christopher Reckord outlined that tTech, “has begun to reap the benefits of the marketing seeds that were sown throughout 2017.” The Company managed to achieve a 23% and 50% growth in revenue and net profit respectively for the first quarter for FY2018. Mr. Reckord highlighted this boost in revenue as a result of:
- An uptake in their Managed IT services
- Growth in their IT Security services
- The PBX system that was deployed in the Eastern Caribbean
He highlighted that the increased demand in services allowed to Company to realize an abnormal increase in cost of sales for the first quarter in FY2018, as they had to take on additional consultants to support the high demand. Notably however, Mr. Reckford further noted that due to the nature of the IT business, shareholders should not expect a linear growth in revenue, as some financial years will facilitate a one off “big” opportunity which may not necessarily be repeated the following financial year.
With respect to their recently signed deal with Loris Technologies regarding the implementation of “FileNexus’, Mr. Reckord indicated they are now in the final stages, as they are preparing proposals to deliver to their customers.
Since listing on the Jamaica Stock Exchange in 2016, Chairman, Mr. Edward Alexander, noted that, “tTech’s awareness in the market has increased along with their operational activities which ultimately set us on a trajectory for continued growth.”
Going forward, Mr. Reckord however outlined that tTech intends on growing the business in the following ways:
- Monthly recurrent revenues
- Continued expansion within IT and Consulting services
- Expansion within the international market but not aggressively. Thus far tTech has offered services in the UK and are currently in dialog with potential partners within North America.
- Implementation of a Professional Services Automation Tool to help with the management of requests from customers and distributing accordingly to team members.
Mr. Alexander acknowledged that ttech’s key advantages relative to international competitors in Jamaica’s local market are:
- Their enthusiastic and knowledgably based team members
- The massive price difference
- Their proactive IT services relative to the usual Break fix services offered.
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.