December 13, 2021
K.L.E. Group Limited (KLE), for the nine months ended September 30, 2021 reported revenues of $117.83 million, relative to $107.85 million last year, a 9% increase. For the third quarter, revenue totalled $45.52 million, relative to $27.41 million last year, a 66% increase.
Cost of sales rose by 10% to $36.41 million (2020: $33.15 million) for the period. As such, Gross Profit for the period increased by 9% to $81.42 million relative to $74.70 million last year. Gross profit for the quarter amounted to $31.86 million (2020: $18.89 million).
Other operating income for the period decreased by 72% to $1.02 million (2020: $3.60 million), while administrative and other expenses decreased by 18% to $97.48 million (2020: $118.18 million).
This resulted in loss from operation totalling $15.04 million, relative to loss from operations of $39.88 million reported in 2020. Profit from operating activities for the third quarter amounted to $6.45 million, relative to a loss of $11.76 million booked in 2020.
In addition, there was an 75% increase in the company’s finance and depreciation cost for the period to total $42.91 million relative to $24.56 million in 2020.
Loss before taxation amounted to $57.95 million (2020: pretax loss of $64.43 million). Loss before tax for the quarter amounted $7.71 million (2020: $20.74 million).
There were no taxes booked for the period, as such, net loss for the period amounted to $57.95 million compared to a net loss of $64.43 million in 2020, while net loss for the third quarter totalled $7.71 million (2020: net loss of $20.74 million).
The loss-per-share for the period amounted to $0.58 (2020: LPS $0.64), while loss-per-share of $0.08 was computed for the quarter (2020: LPS $0.21). The twelve-month loss-per-share amounted to $0.97. The stock traded at $1.99 as at December 12, 2021. The number of shares used in our calculation is 100,000,000.
Balance Sheet Highlights:
The company, as at September 30, 2021, recorded total assets of $203.97 million, an decrease of 25% when compared to $272.13 million recorded last year. This was due to a decline in ‘Due from Related Parties’ to $5.73 million at the close of the period compared to $73.59 million in 2020.
Total Stockholders’ Deficit as at September 30, 2021 closed at $64.27 million, compared to shareholders equity of $34.23 million for the corresponding period last year. This resulted in a shareholders’ deficit per share of $0.64 versus a shareholders’ equity per share of $0.34 in 2020.
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
