Date: July 27, 2018
tTech Limited (tTech) for the six months ended June 30, 2018 booked a 35% increase in operating revenues for the period to $145.25 million compared to $107.83 million for the corresponding period last year. Revenue for the quarter rose 47% from $51.25 million in June 2017 to $75.44 million.
Cost of sales hiked at a 183% to close the six months at $39.71 million compared to last year’s $14.05 million whilst for the second quarter cost of sales amounted to $22.28 million (2017: $4.75 million). According to tTech, “This was mainly due to additional subcontractors hired to execute the consulting contracts which have continued from Q1.” This resulted into a 13% rise in six month’s gross profit to total $105.55 million (2017: $93.79 million).
In addition, Other Income , gains and losses rose drastically from $2.02 million in 2017 to $5.46 million in 2018.
Other Operating Expense rose 69% to $13.23 million from $7.84 million for June 2017 while administrative expenses for the first six months went up to $81.33 million (2017: $76.59 million), a rise of 6%.
Profit before taxation moved up 45% and 41% for the period and quarter respectively to $16.45 million (2017: $11.38 million) and $9.72 million (2017: $6.89 million) respectively.
Consequently, Net Profit for the six months was reported at $16.45 million, 45% more than that of the prior year’s corresponding period of $11.38 million. Notably, net profit for the second quarter also advanced, by 41% from $6.89 million booked for the second quarter of 2017 to $9.72 million.
The earnings per share (EPS) for the period amounted to $0.16 relative to $0.11, while the EPS for the quarter totaled $0.09 compared to a $0. 06 in 2017. The trailing EPS amounted to $0.22. The number of shares used in our calculations is 106,000,000 units. tTech last traded on July 26, 2018 at $5.28.
Management indicated, “During the quarter the company saw increased business in most of our major service categories including infrastructure Management, IT Security Services, Voice/ PBX Systems, Cloud Services and Consulting with new contracts with new and existing customers. We continue to have increased PBX business, however new customers have preferred to acquire these systems under a “hardware-as-a-service” model, where tTech provides and maintains the central switch under a predictable payment model contributing positively to our important monthly recurring revenue growth. We have had a good second quarter and with the expanded and re-energized sales team leveraging the momentum built up in Q1 closing more of the opportunities. We anticipate continued growth and performance in the second half of 2018.”
Balance Sheet Highlights:
As at June 30, 2018, the Company reported total assets of $233.92 million, a 15% increase when compared to $202.93 million in 2017. This was as a result of an increase in ‘Cash and Cash Equivalents’ which amounted to $38.01 million relative to $21.52 million.
Shareholders’ Equity as at June 30, 2018 was $194.83 million compared to $175.38 million for the comparable period of 2017. This resulted in a book value per share of $1.84 compared to $1.65 the prior year.
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