May 16, 2023

tTech Limited (tTech), for the three months ended March 31, 2023, booked a 21% increase in Revenues to $118.37 million compared to $97.99 million recorded in Q1 of 2022. Cost of sales also increased by some 16% to $69.51 million, up from $59.89 million in 2022. As such, gross profit for the first quarter of FY23 rose by 28% to $48.86 million (2022: $38.09 million).

tTech’s administrative expenses rose marginally year over year to $35.75 million (2022: $35.74 million). ‘Other operating expenses’ fell by 26% to $5.56 million vs $7.47 million recorded in Q1 of 2022.

Operating profit of $7.78 million was recorded relative to an operating loss of $5.11 million booked the prior year.

After earning Finance Income of $697,000 (2022: $605,000), and repaying ‘Finance costs’ of $487,000 (2022: $552,000) tTech reported profit before taxation of $7.99 million, relative to loss before taxation of $5.05 million booked the year before.

After Tax charge of $1.41 million (2022: Tax credit $854,000), tTech posted a Net profit of $6.58 million relative to Net loss of $4.20 million reported in Q1 2022.  tTech noted, “This improvement in our financial performance is a testament to our commitment to cost management and operational efficiency.”

The company reported Earnings per share (EPS) of $0.06 for the quarter, relative to the Loss Per Share of $0.04 in the same period a year later. On a twelve-month trailing basis, tTech also experienced a LPS amounting to $0.11. The number of shares used in our calculations is 106,000,000 units. The company’s stock price last traded on May 15, 2023 at $2.52.

 Balance Sheet Highlights: 

As at March 31, 2023, the Company’s total assets declined marginally by 1%, to end at $311.56 million (2022: $315.18 million). This downward movement was attributable to a $6.62 million decline in ‘Investments’ from $10.13 million in 2022 to $3.51 million.

Shareholders’ Equity as at March 31, 2023 was $225.12 million compared to $236.98 million for the comparable period of 2022. This resulted in a book value per share of $2.12 compared to $2.24 in Q1 of 2022.

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.