April 1, 2022
tTech Limited (tTech) for the twelve months ended December 31, 2021, booked a 9% increase in revenues to $392.16 million compared to $359.48 million for the prior financial year. Revenue for the quarter closed at $90.94 million relative to $96.85 million in 2020.
Cost of sales rose by 19% to $136.15 million from the $113.99 million reported for December 2020. Despite this, gross profit increased by 4% for the year to $256.01 million (2020: $245.49 million). Gross profit for the quarter fell 18% to close at $54.76 million compared to $67.11 million booked for the corresponding quarter of 2020.
Other Income and gains totalled $17.17 million for the year relative to a gain of $14.40 million in 2020, while administrative expenses rose 11% year over year to $229.67 million (2020: $206.53 million). Other operating expenses for the year reflected a 16% increase year over year to $34.98 million compared to $30.21 million recorded in 2020.
As such, operating profit for the year totalled $8.52 million, 63% below the $23.15 million booked in 2020. Operating loss for the quarter amounted to $9.80 million relative to a profit of $14.76 million documented for the comparable quarter of 2020.
Finance income rose 12% year over year from $1.73 million in 2020 to $1.94 million for the year ended December 31, 2021. Moreover, tTech booked a finance cost of $2.29 million relative to $2.39 million booked the previous year.
Consequently, Profit before Taxation contracted by 64% from $22.48 million in 2020 to $8.18 million for the period under review. Tax credit of $45,000 was recorded (2020: nil), thus Net Profit for the year amounted to $8.22 million versus $22.48 million booked in 2020. Net loss for the quarter totalled $8.28 million relative to a profit of $14.27 million in 2020.
The earnings per share (EPS) for the year amounted to $0.08 compared to $0.21 reported in 2020, while loss per share for the quarter totaled $0.08 relative to a EPS of $0.13 for 2020. The number of shares used in our calculations is 106,000,000 units. The company’s stock price closed the trading period on March 31, 2022 at $4.21 with a corresponding P/E of 54.28 times.
Managers stated, “Inventory adjustments contributed significantly to the less than stellar results, but such write-offs are not expected to reoccur. In addition, the delivery of computer and network equipment was delayed because of the shortage of semiconductor chips globally. The impact was that some customer projects could not be completed in the year and we were unable to bill for those projects and realize the associated revenues.”
Balance Sheet Highlights:
As at December 31, 2021, the Company reported total assets of $313.90 million, a 1% decline when compared to the $317.25 million reported in 2020. This was as a result of a 72% reduction in ‘Investments’ to amount to $10.16 million (2020: $36.17 million).
Shareholders’ Equity as at December 31, 2021 was $241.83 million compared to $239.22 million for the comparable period of 2020. This resulted in a book value per share of $2.28 compared to $2.28 the prior year.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.