December 30, 2020
CAC 2000 (CAC) revenues for the year ended October 31, 2020, rose by 12% to close at $1.26 billion (2019: $1.12 billion). Revenues for the fourth quarter decreased by 14% to $330.28 million compared to $382.51 million for the same period in the prior financial year.
CAC noted, “CAC, once again, has demonstrated our agility by identifying and offering indoor environmental quality (IEQ) solutions such as fresh air injection systems, higher efficiency filtration, sterilization and improved maintenance services which gained us additional revenues.”
Cost of sales increased by 8% to $834.65 million (2019: $775.57 million) for the period under review. Consequently, Gross Profit for the year rose to $423.86 million (2019: $344.62 million), reflecting a 23% year over year increase. For the quarter, Gross Profit reduced by 1% to close at $104.88 million (2019: $105.43 million).
The Company reported a 6% decrease in total expenses to $366.20 million (2019: $389.53 million). This was as a result of a 7% decrease in General Administration to $342.18 million (2019: $367.82 million). The decrease was however tempered by an 11% upward movement in Selling & Distribution Expenses to $24.03 million (2019: $21.71 million). As for the fourth quarter, total operating expenses decreased by 15% to $70.68 million (2019: $82.83 million).
The Company noted, “Expenses were kept lower than the previous year as we took rapid action to respond to covid-19 by reducing operating costs but without making any of our staff members redundant.”
Other Income of $2.54 million was recorded for the period significantly down from $47.21 million reported for the same period the prior year.
Profit before taxation and finance cost rose to $60.20 million (2019: $2.30 million). While for the quarter, profit before taxation and finance cost closed at $34.39 million (2019: $22.62 million).
Net Finance Costs went down for the period in review to $27.66 million (2019: $35.71 million). this was because of, Other Gains for the year end amounted to $1.58 million relative to Other Loss of $7.29 million twelve months earlier. However, Interest Expenses amounted to $29.52 million (2019: $28.70 million) and Interest Income closed at $288,534 (2019: 282,280).
Profit Before Taxation for the year-end to closed at $32.54 million versus a loss before taxation of $33.40 million in the prior comparable period. No taxes were recorded for the period. Net profit and comprehensive income for the year-end amounted to $32.54 million compared to net loss of $33.40 million booked in the same period last year. Net Profit for the quarter was reported at $25.29 million compared to $6.07 million for the corresponding quarter of 2019.
Earnings-per-share (EPS) for the year end amounted to $0.25 compared to a loss per share of $0.26 in 2019, while for the quarter the EPS amounted to $0.20 versus an EPS of $0.05 in 2019. The number of shares used in our calculations is 129,032,258 units. Notably, CAC’s stock price closed the trading period on December 29, 2020 at a price of $10.00 with a corresponding P/E of 39.66.
Balance Sheet Highlights:
As at October 31, 2020, the Company reported total assets of $1.11 billion, a 5% decrease when compared to $1.17 billion a year ago. This was resulting from a decrease in ‘Cash and Bank Deposits’ and ‘Due from Related Parties’ which closed at $106.09 million (2019: $221.48 million) and $15,963 (2019: $44.04 million), respectively. The decrease was partially tempered by an increase in ‘Trade and Other Receivables’ which amounted to $636.66 million (2019: $510.81 million).
Total Shareholders’ Equity as at October 31, 2020 was $388.34 million compared to $355.81 million a year ago. This resulted in a book value per share of $3.01 compared to $2.76 in 2019.
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