August 11, 2023
tTech Limited (tTech) for the six months ended June 30, 2023 reported a 28% increase in Revenue totaling $236.29 million compared to $185.29 million in the corresponding period last year. Revenue for the second quarter had a 35% increase to close at $117.92 million compared to $87.30 million for the comparable quarter of 2022.
Cost of Sales amounted to $133.14 million (2022: $125.19 million), this represents an increase of 6% year over year. Consequently, gross profit increased by 72% to $103.15 million compared to $60.09 million for the six months ended June 30, 2022. The company booked gross profit of $54.29 million for the second quarter versus $22 million reported for the similar quarter of 2022.
Administrative expenses increased by 46% to close at $80.18 million (2022: $55.01 million), while Other Operating expenses decreased by 43% from $16.80 million in 2022 to $9.58 million in the period under review. As a result, operating profit for the six months ended June 30, 2023 amounted to $13.83 million, a 230% increase relative to operating loss of $10.68 million reported in 2022.
Finance cost for the six months ended June 30, 2023, amounted to $972,000, a 10% decrease relative to $1.09 million reported in 2022. Finance costs for the second quarter amounted to 485,000 (2022: $534,000). Finance income totaled $1.67 million a 38% increase from the corresponding period last year. (2022: $1.21 million).
Profit before Taxation for the six months ended June 30, 2023, amounted to $14.53 million, a 238% increase relative to loss of $10.55 million reported in 2022. Profit before Taxation for the second quarter amounted to $6.54 million (2022: loss: $5.50 million).
Taxation for the six months ended June 30, 2023 amounted to $2.72 million (2022: tax credit of $1.22 million) . Net Profit for the six months amounted to $11.81 million, a 227% improvement on the net loss of $9.33 million reported in 2022. For the second quarter, Net Profit was $5.23 million (2022: net loss of $4.27 million).
Consequently, Earnings Per Share for the six months amounted to $0.12 (2022: LPS: $0.09), while Earnings Per Share for the quarter totaled $0.05 (2022: LPS: $0.04). The twelve month trailing LPS was $0.02 and the number of shares used in these calculations was 106,000,000.
Notably, tTech’s stock price closed the trading period on August 11, 2023 at a price of $2.26.
Balance Sheet Highlights
The company’s assets totaled $320.86 million (2022: $308.73 million). This increase was due to a 50% increase in ‘Accounts Receivables’ to $90.62 million (2022: $60.31 million). Also, ‘Short Term Investments’ increased by $7.52 million to close at $102.12 million.
Shareholder’s equity was $231.74 million (2022: $229.68 million), representing a book value per share of $2.19 (2022: $2.17).
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.