tTech reports 59% increase in nine months net profits

Date: November 13, 2018

tTech Limited (tTech) for the nine months ended September 30, 2018, booked a 31% increase in operating revenues for the period to $214.84 million compared to $163.63 million for the corresponding period last year. Revenue for the quarter rose 25% from $55.80 million in September 2017 to $69.59 million.

Cost of sales escalated 150% to close the nine months at $53.19 million compared to last year’s $21.31 million, whilst for the second quarter cost of sales amounted to $13.48 million (2017: $7.26 million). This resulted in a 14% rise in nine month’s gross profit to total $161.65 million (2017: $142.32 million). Gross profit for the third quarter amounted to $56.11 million, 16% above the $48.54 million booked in 2017.

Other income, gains and losses for the period rose drastically from $4.34 million in 2017 to $12.21 million in 2018, a 182% increase year on year.

Administrative expenses for the period advanced 8% to $124.88 million (2017: $115.26 million), while other operating expense rose 52% to $20.30 million from $13.33 million in 2017.

Profit before taxation jumped up 59% for the period to $28.68 million relative to $18.07 million reported for the comparable period last year. Profit before tax for the quarter improved 83% to close at $12.23 million (2017: $6.89 million).

Consequently, Net Profit for the nine months was reported at $28.68 million, 59% more than that of the prior year’s corresponding period of $18.07 million. Notably, net profit for the second quarter also advanced by 83% from $6.69 million booked for the third quarter of 2017 to $12.23 million.

The earnings per share (EPS) for the period amounted to $0.27 relative to $0.17 booked last year, while the EPS for the quarter totaled $0.12 compared to a $0.06 in 2017. The trailing EPS amounted to $0.28. The number of shares used in our calculations is 106,000,000 units. tTech last traded November 13, 2018 at $6.00

Management indicated, “During the quarter the company saw increased business in most of our major service categories. tTech continued to engage, educate and challenge IT Leadership from across Jamaica in our quarterly CIO forum called tTech Insights.” “IT Security Services continue to grow in line with our strategic intent to support clients, as the local regulatory environment matures with the imminent Data Protection Act. This quarter our focus was the delivery of Security Governance services with major clients specifically: Security Awareness training targeted to staff, executives and Boards, IT and Security Policy development and Support for Data Discovery and Classification.”

Balance Sheet Highlights:

As at September 30, 2018, the Company reported total assets of $264.42 million, a 25% increase when compared to $211.54 million in 2017. This was as a result of an increase in ‘Cash and Cash Equivalents’ which amounted to $46.23 million relative to $21.63 million.

Shareholders’ Equity as at September 30, 2018 was $207.06 million compared to $177.80 million for the comparable period of 2017. This resulted in a book value per share of $1.95 compared to $1.68 the prior year.

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