Date: August 15, 2018
K.L.E Group Limited (KLE), for the six months ended June 30, 2018, the company recorded a total revenue of $110.04 million (2016: $103.72 million), representing a 6% increase in revenue. For the second quarter revenues increased 8% to total $58.66 million (2017: $54.32 million).
Cost of sales increased by 9% to $35.89 million compared to the $32.81 million reported in 2017; as a result, Gross profit was up 5% to total $74.15 million relative to $70.91 million in 2017. While gross profit for the quarter grew 7% to total $39.76 million compared to $37.04 million in 2017.
Other operating income grew by 112% to $12.42 million relative to $5.86 million. In addition, Administrative and Other Expenses increased by 22% from $61.86 million in the first half of 2017 to $75.25 million for the same period of 2018.
Consequently, profit from operation amounted to $11.31 million in contrast to the $14.91 million for the same period last year, this represents a 24% reduction. For the quarter, KLE booked $9.13 million, up 4% compared to the $8.76 million reported for the second quarter of 2017.
Finance and depreciation costs declined to $7.44 million when compared to $7.80 million for the same period of 2017.
This further resulted in a net profit for the period of $3.05 million compared to net profit of $7.12 million for the comparable period in 2017. Net profit for the quarter amounted to $5.05 million versus $5.03 million for the corresponding quarter of 2017.
Earnings per share amounted to $0.03 for the six months, (2017: $0.07) while EPS for the quarter totaled $ 0.051 this compares to EPS of 0.050 in 2017. The twelve-month trailing earnings per share (EPS) amounted to $0.05. The number of shares used in our calculations is 100,000,000. KLE’s stock last traded on August 14, 2018 at $2.88.
Balance Sheet Highlights:
The company, as at June 30, 2018, recorded total assets of $214.30 million, a decline of 4% when compared to $223.98 million in 2017. This was due to a decline in KLE’s Property, Plant & Equipment which closed at $38.77 million (2017: $52.95 million).
Total Stockholders’ Equity as at June 30, 2018 was $142.86 million, up from $141.90 million last year. This resulted in a book value of $1.43 (2017: $1.42).
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 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.