ECL reports year end net loss of US$1.73 million

September 24, 2021

Express Catering Limited (ECL) for the year ended May 31, 2021 reported a 68% decrease in revenue to US$4.41 million (2020: US$14 million). Revenue for the quarter climbed 96% to close at US$2.14 million relative to US$$1.09 million reported the previous year.

Cost of sales (COS) decreased by 65% for the period to US$1.53 million (2020: US$4.33 million). However, gross profit decreased year-on-year by 70%, from US$9.68 million in 2020 to US$2.89 million in 2021. Gross profit for the fourth quarter climbed significantly from US$318,500 in 2020 to US$1.19 million, a 271% increase year over year.

Total expenses decreased by 35% for the period in review to US$4.43 million, down from US$6.84 million booked for 2020’s year end. The decline was associated with a 55% reduction in administrative expenses to US$2.01 million from US$4.41 million booked in the same period last year. Depreciation and Amortization saw a marginal 1% increase to US$2.41 million compared to US$2.38 million for the comparable period in 2020. Promotional expenses saw a 70% decrease from US$46,034 in 2020 to US$13,996 for the period under review. Total expenses for the fourth quarter rose 248% to close at US$1.52 million (2020: US$437,276).

Consequently, operating loss for the period amounted to US$1.54 million relative to the profit of US$2.84 million in 2020. Operating loss for the quarter totalled US$336,749 relative to the loss of US$118,776 booked for the corresponding quarter of 2020.

Finance cost of US$1.93 million (2020: US$1.29 million) was incurred for the period and foreign exchange loss amounted to US$59,378 relative to gains of US$21,153 reported a year prior.

Pre-tax loss for the year totalled US$1.73 million, a significant decline when compared to the pre-tax profit of US$1.56 million recorded for 2020. No tax was incurred for the period under review, as such net loss amounted to US$1.73 million (2020: US$1.56 million). For the quarter, net profit amounted to US$706,879 versus a net loss of US$1.08 million booked for the comparable period in 2020.

Loss per share (LPS) for the year ended totalled US0.11 cents (2020: EPS US0.10 cents). Earnings per share for the quarter amounted to US0.04 cents (2020: LPS US0.07 cents). The number of shares used in the calculation was 1,637,500,000 units. Notably, ECL’s stock price closed the trading period on September 23, 2021 at a price of J$4.42.

Balance Sheet Highlights:  

The Company, as at May 31, 2021, recorded total assets of US$39.81 million (2020: US$32.47 million). Notably, ‘Assets due from related companies’ amounted to US$7.64 million (2020: US$3.64 million), this was slightly tempered by a 6% decline in ‘Property, plant and equipment’ which ended at US$3.93 million (2020: US$4.20 million).

Total Stockholders’ equity as at May 31, 2021 closed at US$2.24 million (2020: US$3.98 million); this resulted in a book value of US0.14 cents (2020: US0.24 cents).














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