November 13, 2023
K.L.E. Group Limited (KLE) for the nine months ended September 30, 2023, reported a 1379% increase in other operating income totalling $55.31 million compared to $3.74 million in the corresponding period last year. Other operating income for the third quarter closed at $1.30 million compared to $2,000 for the comparable quarter of 2023.
Administrative and other expenses amounted to $54.96 million (2022: $8.77 million). This represents an increase of 527% year over year. Consequently, profit from operation amounted to $350,000 compared to an operating loss of $5.03 million for the nine months ended September 30, 2022. The company booked a loss from operation of $6.67 million for the third quarter versus a loss of $1.74 million reported for the similar quarter of 2022.
Finance costs marginally decreased to close at $8.56 million (2022: $8.60 million), while share of post-tax loss of equity accounted associate amounted to $5.66 million versus share of post-tax profit of equity accounted associate of $4.03 million in 2022. As a result, loss before taxation for the nine months ended September 30, 2023, amounted to $13.87 million, a 44% jump relative to loss of $9.60 million reported in 2022.
There were no tax charges for the nine months ended September 30, 2023 (2022: nil). However, adjustments to discontinued operation results amounted to $4.23 million (2022: $27.21 million). Consequently, the company booked a net loss of $9.64 million for the nine-month period compared to a profit of $17.61 million in the corresponding period last year. Net loss for the quarter amounted to $10.68 million relative to a profit of $12.87 million booked in the third quarter of 2022.
Total comprehensive loss for the nine months amounted to $8.90 million relative to a comprehensive income of $17.96 million reported in 2022. This follows an increase of 109% in unrealized gain on investments for the nine months ended September 30, 2023, which amounted to $743,000 (2022: $355,000). For the third quarter, total comprehensive loss was $10.68 million (2023: income of $12.95 million).
Loss per share (LPS) for the nine months amounted to $0.10 (2022: EPS of $0.18), while LPS for the quarter totalled $0.11 (2022: EPS of $0.13). The twelve-month trailing LPS was $0.03, and the number of shares used in these calculations was 100,000,000.
Notably, KLE’s stock price closed the trading period on November 10, 2023, at a price of $1.45.
Balance Sheet Highlights:
The company’s assets totalled $122.26 million; a 29% decrease relative to $173.05 million booked in 2022. This downward movement was largely due to an 80% decrease in investments, which amounted to $6.85 million (2022: $35.06 million), followed by a 62% decrease in cash and cash equivalents, which amounted to $16.58 million (2022: $43.17 million).
Shareholder’s equity was $24.70 million (2023: $26.62 million), representing a book value per share of $0.25 (2023: $0.27).
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.