tTech reports 1% growth in six months net profit

Date: August 08, 2019

 

tTech Limited (tTech) for the six months ended June 30, 2019; booked an 8% increase in revenues to $156.91 million compared to $145.25 million recorded for the prior financial year’s six month period. According to management, “monthly recurring revenues continue to trend in the right direction and our organization is working aggressively on the promise of delivering insanely good IT services to our valued clients. Our sales team is diligently working through the strong pipeline of opportunities and their efforts are expected to positively impact our growth and performance in 2019.”

Revenue for the quarter  closed at $90.45 million, 20% more than the $75.44 million recorded for the second quarter of 2019. Management also noted, “the second quarter performance was buoyed by several major projects which contributed positively to revenues and profit in the quarter. During this quarter, in addition to providing services for these new projects, tTech also procured and provided the equipment required to execute on these projects. Our important monthly recurring revenues from Managed IT Services continues to grow Q2 with the addition of new customers using these services. Cloud services continue to positively impact our results, as we assisted organizations to replace old server equipment with cloud based alternatives. Infrastructure Monitoring and IT Security also increased over the prior period. Our consulting team in partnership with third party solution providers continue to support our customers’ digitization efforts.”

Cost of sales slid by 13% to $34.63 million from the $39.71 million reported for June 2018. As such, gross profit increased 16% for the period to $122.28 million (2018: $105.55 million). Gross profit for the quarter closed at $67.65 million, 27% above the $53.15 million reported for the corresponding quarter of 2018.

Other income totaled $5.13 million for the six months relative to a of $4.33 million in 2018, while administrative expenses rose 14% year over year to $92.62 million (2018: $81.33 million). Other operating expenses for the period reflected a 43% growth year over year to $18.88 million compared to $13.23 million recorded in 2018.

Operating profit totaled $15.92 million, 4% above the $15.32 million booked for the corresponding period of 2018. TTECH booked finance income for the first six months of 2019 of $723,000 compared to $1.13 million recorded in the prior year’s corresponding period.

Consequently, no taxes were recorded for the period, thus net profit amounted to $16.64 million versus $16.45 million booked for the same period of 2018. Net profit for the quarter amounted to $15.72 million, up 62% from the $9.72 million reported for the second quarter of 2018.

The earnings per share (EPS) for the quarter amounted to $0.15 compared to $0.09 reported in 2018. The EPS for the six months ended June 30, 2019 was $0.16 relative to $0.16 posted for the same period in 2018. The trailing twelve months eps amounted to $0.26. The number of shares used in our calculations is 106,000,000 units. The company’s stock price closed the trading period on August 8, 2019 at $6.03.

 

Balance Sheet Highlights:

As at June 30, 2019, the Company reported total assets of $269.09 million, a 15% increase when compared to $233.92 million in 2018. This was as a result of a 96% increase in Accounts Receivable which closed at $66.18 million (2018: $33.69 million). Cash and cash equivalents also contributed to the overall increase with a 99% growth to close at $75.74 million (2018: $38.01 million).

Shareholders’ Equity as at June 30, 2019 was $208.62 million compared to $194.83 million for the comparable period of 2018. This resulted in a book value per share of $1.97 compared to $1.84 the prior year.

 

 

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2019-08-08T16:49:52+00:00