March 2, 2021

tTech Limited (tTech) for the twelve months ended December 31, 2020; booked a 6% increase in revenues to $359.48 million compared to $340.37 million for the prior financial year. Revenue for the quarter closed at $96.85 million relative to $78.28 million in 2019.

Cost of sales rose by 20% to $113.99 million from the $95.17 million reported for December 2019. Despite this, gross profit increased marginally for the year to $245.49 million (2019: $245.19 million).  Gross profit for the quarter went up 16% to close at $67.11 million compared to $57.99 million booked for the corresponding quarter of 2019.

Other Income and gains totalled $14.40 million for the year relative to a gain of $6.29 million in 2019, while administrative expenses rose 12% year over year to $206.53 million (2019: $184.88 million). Other operating expenses for the year reflected a 26% decline year over year to $30.21 million compared to $40.93 million recorded in 2019.

As such, operating profit for the year totalled $23.15 million, 10% below the $25.68 million booked in 2019. Operating profit for the quarter amounted to $4.71 million relative to a loss of $1.21 million documented for the comparable quarter of 2019.

Finance income rose 11% year over year from $1.55 million in 2019 to $1.73 million for the year ended December 31, 2020. Moreover, tTech booked a finance cost of $2.39 million relative to $2.47 million booked the previous year.

Consequently, Profit before Taxation decreased by 9% from $24.76 million in 2019 to $22.48 million for the period under review. No Taxes were recorded for the period, thus Net Profit for the year amounted to $22.48 million versus $24.76 million booked in 2019. Net profit for the quarter totalled $4.22 million relative to a loss of $3.23 million in 2019.

The earnings per share (EPS) for the year amounted to $0.21 compared to $0.23 reported in 2019, while earnings per share for the quarter totaled $0.04 relative to a LPS of $0.03 for 2019. The number of shares used in our calculations is 106,000,000 units. The company’s stock price closed the trading period on March 1, 2021 at $4.35 with a corresponding P/E of 20.51 times.

Managers stated, “tTech had a promising start to 2020 as marketing activities during the second half of 2019 had begun to bear fruit with several opportunities being converted to customers in the first quarter. However, in March 2020 COVID‐19 was declared a global pandemic and conditions changed dramatically. Fortunately, because of investments made previously, tTech was able to respond immediately to the call by the government to implement Work from Home and have our team members work remotely.  At the same time we were kept very busy helping our customers to implement the technologies needed for their staff to operate remotely.”

Balance Sheet Highlights:

As at December 31, 2020, the Company reported total assets of $317.25 million, a 8% increase when compared to $292.91 million in 2019. This was as a result of a 66% increase in ‘Accounts Receivables’ to amount to $71.79 million (2019: $43.14 million). Notably, the company booked ‘Government securities purchased under resale agreements’ of $99.57 million (2019: $81.84 million). These increase in total assets was partially tempered by a 17% decrease in ‘Cash and Cash Equivalents’ to $23.58 million (2019: $40.64 million).

Shareholders’ Equity as at December 31, 2020 was $239.22 million compared to $216.74 million for the comparable period of 2019. This resulted in a book value per share of $2.26 compared to $2.04  the prior year.

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