November 17, 2020

K.L.E. Group Limited (KLE), for the nine months ended September 30, 2020 reported Revenue of $107.85 million, relative to $153.89 million last year, a 30% decline. For the third quarter, revenue totalled $27.41 million, relative to $52.02 million last year, a 47% decline.

Cost of sales contracted by 28% to $33.15 million (2019: $46.28 million) for the period. As such, Gross Profit for the period decreased by 31% to $74.70 million relative to $107.61 million last year. Gross profit for the quarter amounted to $18.89 million (2019: $35.10 million).

Other operating income for the period decreased by 77% to $3.60 million (2019: $15.55 million), while administrative and other expenses increased by 4% to $118.18 million (2019: $113.20 million).

This resulted in loss from operation totalling $39.88 million, relative to profit from operations of $9.97 million reported in 2019. Loss from operating activities for the third quarter amounted to $11.76 million (2019: $212,000).

In addition, there was an 78% increase in the company’s finance and depreciation cost for the period to total $24.56 million relative to $13.83 million in 2019.

Loss before taxation amounted to $64.43 million (2019: pretax loss of $3.86 million). Loss before tax for the quarter amounted $20.74 million (2019: $3.51 million).

There were no taxes booked for the period (2019: $131,000). As such, net loss for the period amounted to $64.43 million compared to a net loss of $3.99 million in 2019, while net loss for the third quarter totalled $20.74 million (2019: net loss of $3.12 million).

The loss-per-share for the period amounted to $0.64 (2019: LPS $0.04), while loss-per-share of $0.21 was computed for the quarter (2019: LPS $0.03). The twelve-month loss-per-share amounted to $0.77. The stock traded at $1.76 as at November 17, 2020. The number of shares used in our calculation is 100,000,000.

Balance Sheet Highlights:

The company, as at September 30, 2020, recorded total assets of $272.13 million, an increase of 22% when compared to $223.18 million recorded last year. This was due to a rise in ‘Property, Plant & Equipment’ to $94.47 million at the close of the period compared to $23.63 million in 2019.

Total Stockholders’ Equity as at September 30, 2020 closed at $34.23 million, compared to $111.51 million for the corresponding period last year. This resulted in a book value of $0.34 versus $1.12 in 2019.

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