KLE reports first quarter net loss of $1.90 million

Date: May 17, 2018

K.L.E. Group Limited (KLE), for the first three months ended March 31, 2018 reported Total Revenue of $51.38 million, a 4% increase when compared with the $49.40 million reported for the corresponding period of 2017.

Gross Profit totaled $34.39 million, up 9% relative to the $33.88 million reported in 2017. This followed Cost of Sales of $16.99 million recorded year to date relative to $15.52 million for first three months of 2017.

Other Operating Income for the quarter totaled $7.55 million (2017: $2.97 million).

Administrative and Other Expenses grew by 27% from $30.69 million to $38.93 million.

As such, Profit from Operations fell 51% to total $3.01 million relative to $6.16 million booked for the corresponding period of 2017. Finance and depreciation costs went up by 21%, moving from $4.07 million last year to $4.91 million for the first quarter of 2018.

Consequently, Net Loss for the quarter amounted to $1.90 million relative to a net profit of $2.09 million in 2017.

Loss per share for the three month ended March 31, 2018 amounted to $0.02, while for the corresponding quarter of 2017, an earnings per share of $0.02 was recorded. The twelve month trailing EPS is $0.05. The number of shares used in our calculations is 100,000,000. KLE’s stock price closed on May 16, 2018 at $2.80.

Balance Sheet at a Glance:-

As March 31, 2018, the company reported Total Assets of $205.73 million (2016: $222.98 million). The main contributors to this decline was ‘Property, Plant & Equipment’ which amounted to $42.39 million (2017: $56.89 million) and ‘Investment in Associate’ moving down by $4.07 million to end the period at $73.30 million. However, ‘Investment in Subsidiary’ increased to $3.85 million in 2018 from nil and tempered the overall movement.

Shareholder’s Equity closed at $137.88 million (2017: $136.87 million) resulting in a book value per share of $1.38 (2017: $1.37).


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.