ECL reports 254% increase in six months net profit

Express Catering Limited (ECL) for the six months ended November 30, 2017 reported a 14% increase in revenue to US$6.88 million (2016: US$6.02 million). Revenue for the quarter advanced 20% to close at $2.26 million relative to $1.89 million reported the previous year.

Cost of sales (COS) increased by 22% for the period to US$1.85 million (2016: US$1.52 million). As a result gross profit increased year-on-year for the six month period by 12%, from US$4.50 million in 2016 to US$5.03 million in 2017. Gross profit for the second quarter improved from US$1.89 million in 2016 to US$2.26 million for the six months ended November 30, 2017.

Total expenses decreased by 12% for the period in review to US$3.48 million for 2017, down from US$3.96 million booked for the six months ended November 2016. The decrease was associated with a 13% decline in administrative expenses to US$3.19 million from US$3.67 million. Depreciation and Amortization saw a 3% decline to US$271,721 compared to US$279,672 for 2016. Promotional expenses saw a 32% increase from US$16,209 to US$ 21.386. Total expenses for the quarter slid 9% to close at US$1.63 million (2016: $1.80 million).

Consequently, operating profit increased by 187% to US$1.55 million (2016: US$539,689). Operating profit for the quarter totaled US$630,143, a surge of 615% relative to US$88,130 booked for the corresponding quarter of 2016.

Finance cost of US$174.76 (2016: US$188,368) was incurred, while foreign exchange gain declined to US$4,208 (2016: US$38,402). Consequently, profit for the period amounted to US$1.38 million, 254% above the US$389,723 recorded for the first six months of 2016.  For the quarter, profits amounted to US$544,622 versus US$37,092 booked for the comparable period in 2016. Management indicated, “the second quarter is traditionally the lowest earning quarter for the fiscal year. Based on this trajectory, we are very encouraged by the earning prospects for the full year.”

The twelve-month earnings-per-share was US0.0975 cents while for first six month ended November 2017, it amounted to US0.084 cents (2016: US0.024 cents). Earnings per share for the quarter amounted to US0.0333 cents (2016: US0.0023 cents). The number of shares used in our calculations was 1,637,500,000. ECL stock price closed the trading period on January 10, 2018 at $4.50.

ECL noted, “the addition of Startbucks Coffee concept to the offerings in the Airport is on track for completion during the third quarter. Work is in progress on this initiative and will see 3 locations added within the airport. The company expects substantial revenues from these additions.”


Balance Sheet Highlights:  

The company, as at November 30, 2017, recorded total assets of US$9.20 million. Notably, property, plant and equipment as at November 30, 2017 amounted to US4.41 million, while ‘Owing by related companies’ totalled US$3.61 million.

Total liabilities as at November 30, 2017 amounted to US$4.78 million.

Total Stockholders’ equity as at November 30, 2017, closed at US$4.41 million; this resulted in a book value of US0.27 cents.



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