Ttech reports 10% decrease in nine months net profit

November 12, 2021

tTech Limited (tTech), for the nine months ended September 30, 2021, booked a 15% increase in revenues to $301.22 million compared to $262.63 million recorded for the prior financial year’s corresponding period. Revenue for the third quarter rose 5% to $96.88 million relative to $92.35 million for the same quarter of 2020.

Cost of sales increased by 19% to $99.97 million from $84.25 million reported for September 2020. As such, gross profit increased 13% for the period to $201.25 million (2020: $178.38 million). Gross profit for the quarter rose by 2% to close the quarter at $63.19 million (2020: $61.78 million).

Other income rose to $3.34 million for the nine months relative to $691,000 in 2020, while administrative expenses rose 9% year over year to $166.32 million (2020: $152.31 million). Other operating expenses for the period reflected a 9% increase year over year to $19.95 million compared to $18.38 million recorded in 2020.

Operating profit for the period under review totalled $18.32 million, less than the $8.39 million booked for the corresponding period of 2020. Year to date, tTECH booked finance income for 2021 of $1.53 million compared to $1.63 million recorded in the prior year’s corresponding period and finance cost of $1.73 million (2020: $1.80 million).

Consequently, taxation charge amounted to $1.62 million (2020: nil), thus net profit for the nine months amounted to $16.50 million versus $18.26 million booked for the same period of 2020, a 10% decrease. Net profit for the quarter rose 240% to $7.80 million relative to $2.50 million reported for the third quarter of 2020.

The earnings per share (EPS) for the quarter amounted to $0.06 compared to $0.05 reported in 2020. EPS for the period totalled $0.21 (2020: $0.17). The trailing twelve months EPS amounted to $0.25. The number of shares used in our calculations is 106,000,000 units. The company’s stock price closed the trading period on November 12, 2021 at $4.00 with a corresponding P/E of 15.90 times.

The Company noted, “tTech has formed a partnership with Design Privacy, a boutique Data Privacy Consulting firm, to deliver all the services necessary for an organization to be able to be compliant with the Data Protection Act. The first step in this journey is for organizations to put themselves in a position to provide their registration particulars o the Information Commissioner when instructed to do so as required by the law. This process begins with a gap analysis to assess the organization’s compliance against the requirements of the Act.”

Balance Sheet Highlights:

As at September 30, 2021, the Company reported total assets of $337.55 million, 2% above the $331.06 million reported as at September 30, 2020. This was as a result of a 48% increase in ‘Cash and Cash Equivalents’ to close at $47.53 million (2020: $32.08 million).
Shareholders’ Equity as at September 30, 2021 was $256.05 million compared to $235.01 million for the comparable period of 2020. This resulted in a book value per share of $2.42 compared to $2.22 the prior year.


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