November 11, 2022
K.L.E. Group Limited (KLE), for the nine months ended September 30, 2022 reported no revenue, relative to $117.83 million reported last year. For the third quarter, no revenue was reported, relative to the $45.52 million reported a year prior.
Cost of sales amounted to naught (2021: $36.41 million) for the period. As such, there was no Gross Profit for the period (2021: $81.42 million). Similarly, there was no Gross profit for the quarter (2021: $31.86 million).
Other operating income for the period increased by 268% to $3.74 million (2021: $1.02 million), while administrative and other expenses decreased by 91% to $8.97 million (2021: $97.48 million).
This resulted in loss from operation totalling $5.22 million, relative to loss from operations of $15.04 million reported in 2021. Loss from operating activities for the third quarter amounted to $1.74 million, relative to a profit of $6.45 million booked in 2021.
In addition, there was an 80% decline in the company’s finance and depreciation cost for the period to total $8.41 million relative to $42.91 million reported in 2021.
Loss before taxation amounted to $9.60 million (2021: $57.95 million). Loss before tax for the quarter amounted $1.78 million (2021: $7.71 million).
There were no taxes booked for the period, however there was profit from discontinued operations for the period of $27.21 million and $14.64 million for the quarter. As such, net profit for the period amounted to $17.61 million compared to a net loss of $57.95 million in 2021, while net profit for the third quarter totalled $12.86 million (2021: net loss of $7.71 million).
The earnings per share for the period amounted to $0.18 (2021: LPS $0.58), while earnings per share of $0.13 was computed for the quarter (2021: LPS $0.08). The twelve-month EPS amounted to $1.01. The stock traded at $1.71 as at November 11, 2022 with a corresponding P/E ratio of 1.90 times. The number of shares used in our calculation is 100,000,000.
Balance Sheet Highlights:
The company, as at September 30, 2022, recorded total assets of $173.05 million, a decrease of 15% when compared to $203.97 million recorded last year. This was due mainly to a decline in ‘Property, Plant & Equipment’ and ‘Right to Use Assets’ which both closed the period at naught compared to $86.25 million and $25.29 million in 2021, respectively.
Total Stockholders’ Equity as at September 30, 2022 closed at $26.62 million, compared to shareholders deficit of $64.27 million for the corresponding period last year. This resulted in a shareholders’ equity per share of $0.27 versus a shareholders’ deficit per share of $0.64 in 2021.
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