May 12, 2021
tTech Limited (tTech), for the three months ended March 31, 2021, booked a 10% increase in revenues to $96.37 million compared to $87.55 million recorded for the prior financial year’s first quarter.
Cost of sales rose by 16% to $31.39 million from the $26.97 million reported for the three months ended March 31, 2020. Gross profit increased 7% for the quarter to $64.98 million (2020: $60.58 million).
Other income totalled $17,000 for the three months relative to an income of $67,000 in 2020, while administrative expenses rose 7% year over year to $55.30 million (2020: $51.64 million). Other operating expenses for the period reflected a 39% decline year over year to $4.79 million compared to $7.84 million recorded in prior corresponding quarter.
Operating profit for the first quarter totalled $4.90 million, 322% greater than the $1.16 million booked for the corresponding quarter of 2020. tTech booked finance income for the first three months of $484,000 compared to $566,000 recorded in the prior year’s corresponding quarter. Whereas, finance cost amounted to $582,000 for the three months ended March 31, 2021 (2020: $607,000).
Profit before taxation closed at $4.80 million (2020: $1.12 million).
Taxation amounted to $83,000 for the period (2020: nil), thus net profit for the quarter amounted to $4.72 million versus $1.12 million booked for the same quarter of 2020.
tTech booked a 94% growth in comprehensive income to $8.05 million, up from $4.15 million documented twelve months earlier.
The earnings per share (EPS) for the quarter amounted to $0.04 compared to an EPS of $0.01 reported in 2020. The trailing twelve months EPS amounted to $0.25. The number of shares used in our calculations is 106,000,000 units. The Company’s stock price closed the trading period on May 11, 2021 at $4.76 with a corresponding P/E of 19.35 times.
Management noted that, “tTech has had an encouraging start to 2021. Our marketing activities during the second half of 2020 have begun to bear fruit; also customers who reached out to us for assistance as a result of the pandemic are requesting more services and products. Several other new opportunities have been converted contributing positively to revenues and profits in the quarter. Another major contributing factor towards the momentum is tTech’s continued rollout of a holistic business management system to align and synchronize our business processes, particularly in relation to service delivery.”
Furthermore, “During the period the marketing team began preparations for TechCon, our annual business technology event to be held online this year on May 18‐19. At TechCon, business and technology decision makers come together to learn about the latest IT trends and Digital Transformation solutions that can help organizations to improve efficiencies, reduce costs, increase profits, improve team engagement and increase customer satisfaction. The theme of this year’s event is “Enabling a Digital Society: Resilience in the Face of Change”. Please visit our website www.ttech.com.jm for more information and to register,” according to tTech.
Balance Sheet Highlights:
As at March 31, 2021, the Company reported total assets of $339.54 million, an 8% increase when compared to $313.08 million in 2020. This was mainly because a 50% increase in ‘Cash and Cash equivalents’ to close at $41.88 million (2020: $27.89 million) and a 9% growth in ‘Short-term Investment’ to $101.22 million (2020: $93.09 million).
Shareholders’ Equity, as at March 31, 2021, was $247.27 million compared to $220.89 million for the comparable period of 2020. This resulted in a book value per share of $2.33 compared to $2.08 booked the prior year.
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