August 14, 2023

Dolphin Cove Limited (DCOVE)

Unaudited financials for the six months ended June 30, 2023:

Expressed in United States Dollars unless otherwise stated

Dolphin Cove Limited (DCOVE) for the six months ended June 30, 2023 reported a 37% increase in Total Revenue totaling $9.27 million compared to $6.76 million in the corresponding period last year. Total Revenue for the second quarter had a 5% increase to close at $4.42 million compared to $4.19 million for the comparable quarter of 2022.

Direct costs amounted to $998,581 (2022: $643,939), this represents an increase of 55% year over year. Consequently, gross profit increased by 35% to $8.27 million compared to $6.11 million for the six months ended June 30, 2022. The company booked gross profit of $3.96 million for the second quarter versus $3.82 million reported for the similar quarter of 2022.

Selling expenses increase by 47% to close at $1.94 million (2022: $1.33 million), while administrative expenses increase by 58% from $582,511 in 2022 to $921,188 in the period under review. Also, other operations grew 13% totaling $1.94 million (2022: $1.71 million). As a result, total expenses for the six months ended June 30, 2023 amounted to $4.80 million, a 33% increase relative to $3.62 million reported in 2022.

Profit before finance income and costs for the six months ended June 30, 2023, amounted to $3.42 million, a 37% increase relative to $2.50 million reported in 2022. Profit before finance income and costs for the second quarter amounted to $1.50 million (2022: $1.69 million).

Net finance cost totaled $257,107 a 422% increase from the corresponding period last year. (2022: $49,212).

Pretax Profit for the six months ended June 30, 2023, amounted to $3.17 million, a 29% increase relative to $2.45 million reported in 2022. Pretax profit for the second quarter amounted to $1.39 million (2022: $1.67 million).

Taxation for the six months ended June 30, 2023 had a 28% increase to reach $440,616 (2022: $613,111). Net Profit after taxation for the six months amounted to $2.72 million, a 48% increase from the $1.84 million reported in 2022. For the second quarter, Net Profit after taxation was $1.15 million (2022: $1.04 million).

Consequently, Earnings Per Share for the six months amounted to $0.01 (2022: EPS: $0.005), while Earnings Per Share for the quarter totaled $0.003 (2022: EPS: $0.003). The twelve-month trailing EPS was $1.52 and the number of shares used in these calculations was 392,426,376.

Notably, DCOVE’s stock price closed the trading period on August 14, 2023 at a price of $16.29 with a corresponding P/E ratio of 10.73x.

Balance Sheet Highlights

The company’s assets totaled $34.68 million (2022: $33.10 million). This increase was particularly due to an increase in ‘Investments’ to close at $1.01 million (2022: $18,157). Also, ‘Due from parent’ grew 121% to close $1.51 million (2022: $684,200).

Shareholder’s equity was $29.84 million (2022: $28.01 million), representing a book value per share of $0.08 (2022: $0.07).

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