September 15, 2023

CAC 2000 Limited (CAC) for the nine months ended July 31, 2023 reported a 16% decrease in revenue totaling $637.76 million compared to $754.94 million in the corresponding period last year. Revenue for the third quarter had a 15% increase to close at $251.26 million compared to $219.28 million for the comparable quarter of 2022.

Cost of Sales amounted to $402.57 million (2022: $444.24 million), this represents a decline of 9% year over year. Consequently, gross profit decreased by 24% to $235.20 million compared to $310.70 million for the nine months ended July 31, 2022. The company booked a gross profit of $83.13 million for the third quarter versus $74.40 million reported for the similar quarter of 2022.

Management noted, “CAC’s big takeaway from Covid continues to be the need for diversification of our revenue streams and product offerings and to this end CAC is pleased to announce the launch of our own trademarked brand Vytal, which is being well received by our customers and resellers. As well, at the time of this publication CAC continues to being focused on building up our project pipeline and to this end we continue to see the project portfolio bolstered by our wins on a day-to-day basis.”

Selling & Distribution decrease by 33% to close at $10.62 million (2022: $15.78 million), while General Administration fell 19% from $305.07 million in 2022 to $247.70 million in the period under review. As a result, total expenses for the nine months ended July 31, 2023 amounted to $258.32 million, a 19% decrease relative to $320.86 million reported in 2022.

Other income amounted to $3.18 million versus $8.24 million booked in 2022.

Loss Before Finance Cost and Taxation for the nine months ended July 31, 2023, amounted to $19.94 million, a 938% increase relative to $1.92 million reported in 2022. Profit Before Finance Cost and Taxation for the third quarter amounted to $682,141 (2022: Loss of $27.65 million). Net Finance Cost year to date totalled $58.75 million, a 228% increase from the corresponding period last year (2022: $17.90 million).

Loss before Taxation for the nine months ended July 31, 2023, amounted to $78.70 million, a 297% increase relative to $19.82 million reported in 2022. Loss before Taxation for the third quarter amounted to $25.01 million (2022 Loss before taxation: $33.15 million).

Tax credit for the nine months ended July 31, 2023 amounted to $4.75 million (2022: Tax of $83,604). As such,  Net Loss for the nine months amounted to $73.94 million, a 272% increase from the $19.90 million reported in 2022. For the third quarter, Net Loss was $27.55 million (2022: $33.70 million).

Consequently, Loss Per Share for the nine months amounted to $0.57 (2022: LPS: $0.16), while Loss Per Share for the quarter totaled $0.21 (2022: LPS: $0.26). The twelve month trailing LPS was $0.26 and the number of shares used in these calculations was 129,032,258.

Notably, CAC’s stock price closed the trading period on September 16, 2023 at a price of $3.52.

Balance Sheet Highlights

 The company’s assets totalled $1.31 billion (2022: $1.51 billion). The overall movement was due to  declines in ‘Trade and Other Receivables’ and ‘Inventories’ which ended the period at $552.65 million (2022: $622.74 million) and $585.78 million (2022: $642.13 million) respectively.

Shareholder’s equity was $370.09 billion (2022: $403.73 billion), representing a book value per share of $2.86 (2022: $3.13).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. 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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.