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).
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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.