May 3, 2023

Dolphin Cove Limited (DCOVE) for the year ended December 31, 2022: 

Total revenue increased 98% to US$15.11 million (2021: US$7.64 million). For the quarter, total revenue increased 78% to US$3.91 million (2021: US$2.20 million). Of the year-end total revenue:

• Programme revenue increased 100% to US$7.72 million (2021: US$3.87 million)
• Ancillary services revenue increased 96% to US$7.39 million (2021: US$3.77 million).

Total direct costs increased 95% to US$1.73 million (2021: US$888,202). Consequently, gross profit increased 98% to US$13.38 million (US$6.75 million).

Other income declined 49% to US$125,975 (2021: income of US$246,737).

Total operating expenses increased 87% to US$9.17 million (2021: US$4.90 million). The increase was primarily due to a 72% increase in expenses from other operations, which amounted to US$4.72 million (2021: US$2.74 million) & a 126% increase in selling expenses to US$3.15 million (2021: US$1.39 million).

Finance income declined 62% to US$82,352 (US$218,686), while finance cost increased 35% to US$607,492 (2021: US$499,211).

Profit before taxation increased 78% to US$3.58 million (2021: US$2.02 million). After taxes of US$614,919 (2021: US$506,210), net profit increased 96% to US$2.97 million (2021: US$1.51 million). For the quarter, net profit amounted to US$2,455 (2021: loss of US$599,797).

Earnings per stock (EPS) unit amounted to US$0.0076 (2021: US$0.0039). The number of shares used in the calculation was 392,426,376 units. The stock traded at J$15.29 as at May 2, 2023 with a corresponding P/E ratio of 13.30x.

Balance Sheet Highlights:

Total assets, as at December 31, 2022, increased 4% to US$33 million (2021: US$31.62 million) due largely to a massive jump in ‘Investments’, which grew to US$1 million (2021: US$2,132).

Shareholders’ equity, as at December 31, 2022, increased 4% to US$28.14 million (2021: US$27.17 million). This resulted in a book value per share of US$0.072 or J$10.90 (2021: US$0.069, J$10.74).

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.