August 13, 2024
tTech Limited (tTech) for the six months ended June 30, 2024, reported a 7% decrease in Revenue totalling $219.90 million compared to $236.29 million in the corresponding period last year. Revenue for the second quarter had a 14% decrease to close at $101.93 million compared to $117.92 million for the comparable quarter of 2023.
Cost of Sales amounted to $130.38 million (2023: $133.14 million), this represents a decrease of 2% year over year. Consequently, gross profit decreased by 13% to $89.52 million compared to $103.15 million for the six months ended June 30, 2023. The company booked gross profit of $42.36 million for the second quarter versus $54.29 million reported for the similar quarter of 2023.
Administrative expenses decreased by 3% to close at $77.63 million (2023: $80.18 million), while Other Operating expenses increased by 9% from $9.58 million in 2023 to $10.40 million in the period under review. As a result, operating profit for the six months ended June 30, 2024, amounted to $5.71 million, a 61% decrease relative to $14.80 million reported in 2023.
Finance cost for the six months ended June 30, 2024, amounted to $882,000, a 9% decrease relative to $972,000 reported in 2023.
Finance income totalled $1.22 million a 27% decrease from the corresponding period last year. (2023: $1.67 million).
Profit before Taxation for the six months ended June 30, 2024, amounted to $6.05 million, a 61% decrease relative to $15.50 million reported in 2023. Profit before Taxation for the second quarter amounted to $45,000 (2023: $7.94 million).
Taxation for the six months ended June 30, 2024, had a 92% decrease to reach $214,000 (2023: $2.72 million).
Net Profit for the six months amounted to $5.84 million, a 54% decrease from the $12.78 million reported in 2023. For the second quarter, Net Profit was $581,000 (2023: $6.62 million). Management highlighted, “The reduction in revenues and profits is largely attributable to the loss of a major customer in the first quarter. The revenue loss is expected to be recovered by the end of this year.”
“On July 11, 2024, Edward Alexander and G. Christopher Reckord, sold a total of 52,012,834 tTech shares, representing 49.1% of tTech Limited’s issued shares. The acquiring entity, Simply Secure Limited, is owned by Kevin Gordon and Rob Mayo-Smith. Messrs. Gordon and Mayo-Smith are also the owners of Simply Secure LLC, a Managed Security Services Provider based in Ft. Lauderdale, Florida. Also, Simply Secure Limited has indicated that it intends to acquire more shares in tTech, and if more than 50% of tTech’s shares are acquired an offer will be made to all remaining tTech shareholders to purchase their shares. The offer to the remaining shareholders would be contingent on the completion of additional due diligence, finalization of the terms of the offer, review by the tTech board and approval by the regulators. Simply Secure and tTech are committed to adhering to the Securities Regulations and the JSE Rules.”
Consequently, Earnings Per Share for the six months amounted to $0.06 (2023: EPS: $0.12), while Earnings Per Share for the quarter totalled $0.01 (2023: EPS: $0.06). The twelve month trailing EPS was $0.13, and the number of shares used in these calculations was 106,000,000.
Notably, tTech’s stock price closed the trading period on August 12, 2024, at a price of $2.30 with a corresponding P/E ratio of 17.96x.
Balance Sheet Highlights
The company’s assets totalled $328.50 million (2023: $320.86 million). During the period ‘short term investments’ declined by $21.56 million, ‘while trade & other receivables’, ‘Inventories’, ‘Contract assets’ and ‘Cash and cash equivalents’ increased by $12.10 million, $8.40 million, $4.68 million and $4.23 million, respectively.
Shareholder’s equity was $240.90 million (2023: $231.74 million), representing a book value per share of $2.27 (2023: $2.19).
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