December 13, 2021

K.L.E. Group Limited (KLE), for the nine months ended September 30, 2021 reported revenues of $117.83 million, relative to $107.85 million last year, a 9% increase. For the third quarter, revenue totalled $45.52 million, relative to $27.41 million last year, a 66% increase.

Cost of sales rose by 10% to $36.41 million (2020: $33.15 million) for the period. As such, Gross Profit for the period increased by 9% to $81.42 million relative to $74.70 million last year. Gross profit for the quarter amounted to $31.86 million (2020: $18.89 million).

Other operating income for the period decreased by 72% to $1.02 million (2020: $3.60 million), while administrative and other expenses decreased by 18% to $97.48 million (2020: $118.18 million).

This resulted in loss from operation totalling $15.04 million, relative to loss from operations of $39.88 million reported in 2020. Profit from operating activities for the third quarter amounted to $6.45 million, relative to a loss of $11.76 million booked in 2020.

In addition, there was an 75% increase in the company’s finance and depreciation cost for the period to total $42.91 million relative to $24.56 million in 2020.

Loss before taxation amounted to $57.95 million (2020: pretax loss of $64.43 million). Loss before tax for the quarter amounted $7.71 million (2020: $20.74 million).

There were no taxes booked for the period, as such, net loss for the period amounted to $57.95 million compared to a net loss of $64.43 million in 2020, while net loss for the third quarter totalled $7.71 million (2020: net loss of $20.74 million).

The loss-per-share for the period amounted to $0.58 (2020: LPS $0.64), while loss-per-share of $0.08 was computed for the quarter (2020: LPS $0.21). The twelve-month loss-per-share amounted to $0.97. The stock traded at $1.99 as at December 12, 2021. The number of shares used in our calculation is 100,000,000.

Balance Sheet Highlights:

The company, as at September 30, 2021, recorded total assets of $203.97 million, an decrease of 25% when compared to $272.13 million recorded last year. This was due to a decline in ‘Due from Related Parties’ to $5.73 million at the close of the period compared to $73.59 million in 2020.

Total Stockholders’ Deficit as at September 30, 2021 closed at $64.27 million, compared to shareholders equity of $34.23 million for the corresponding period last year. This resulted in a shareholders’ deficit per share of $0.64 versus a shareholders’ equity per share of $0.34 in 2020.

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