October 04, 2024

Express Catering Limited (ECL)

Audited financials for the year-end ended May 31, 2024:
All figures are stated in USD except unless otherwise indicated:

Express Catering Limited (ECL) has shown a promising 21% increase in Revenue, reaching a total of $25.59 million for the year ended May 31, 2024, compared to $21.20 million in the corresponding period last year. The fourth quarter also saw a 14% increase, closing at $6.92 million, compared to $6.05 million for the comparable quarter of 2023.

Express Catering Limited (ECL) reported cost of sales, which amounted to $8.47 million (2023: $7.43 million), an increase of 14% year over year. This has led to a significant 24% increase in gross profit, reaching $17.12 million compared to $13.77 million for the year ended May 31, 2023. The company booked a gross profit of $4.62 million for the fourth quarter versus $3.88 million reported for the similar quarter of 2023.

Depreciation and amortization increased by 16% to close at $3.15 million (2023: $2.71 million), while Administrative Expenses increased by 50% from $5.88 million in 2023 to $8.82 million in the period under review. As a result, total expenses for the year-end ended May 31, 2024, amounted to $12.01 million, a 40% increase relative to the $8.61 million reported in 2023. Operating Profit for the year-end ended May 31, 2024, amounted to $5.11 million, a 1% decrease relative to the $5.16 million reported in 2023. Operating Profit for the fourth quarter amounted to $1.08 million (2023: $1.56 million). Finance Costs totaled $3.26 million, a 45% increase from last year’s period. (2023: $2.25 million). Foreign Exchange Loss for the year-end ended May 31, 2024, amounted to $24,696 relative to gain of $34,167 reported in 2023. Foreign Exchange Loss for the fourth quarter amounted to $1,706 (2023: gain of $48,436).

Profit before tax for the year ended May 31, 2024, decreased 38% to $1.83 million (2023: $2.94 million). Total comprehensive income profit for the year amounted to $1.41 million, a 48% decrease from the $2.70 million reported in 2023. For the fourth quarter, total comprehensive Income loss was $678,733 (2023: Profit of $775,757).

Consequently, Earnings Per Share for the year-end amounted to $0.09 (2023: EPS: $0.17), while Loss Per Share for the quarter totaled $0.04 (2023: EPS: $0.05). The number of shares used in these calculations was 1,637,500,000.

ECL’s stock price closed the trading period on October 04, 2024, for $3.30 with a corresponding P/E ratio of 24.52x.

Balance Sheet Highlights

Express Catering Limited (ECL) boasts a robust balance sheet, with the company’s assets totaling $56.36 million (2023: $42.19 million). The increase in assets is attributed to a 26% year-over-year increase in “Right-of-use assets” ending the fiscal year at $27.63 million (2023: $21.91 million), a 35% year-over-year increase in “Due from related companies” ending the fiscal year at $16.79 million (2023: $12.47 million), and a 458% year over year increase in “Intangible Assets/Licenses and franchises” ending the fiscal year at $3.60 million (2023: $645,277).

Shareholder’s equity was $7.45 million (2023: $6.04 million), representing a book value per share of $0.71 (2023: $0.57).

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