November 15, 2019
K.L.E. Group Limited (KLE), for the nine months ended September 30, 2019 reported Revenue of $153.89 million, relative to $156.66 million last year, a 2% decline. For the third quarter, revenue totalled $52.02 million, relative to $52.63 million last year, a 1% decline.
Cost of sales contracted by 10% to $46.28 million (2018: $51.22 million) for the period. As such, Gross Profit for the period increased by 2% to $107.61 million relative to $105.43 million last year. Gross profit for the quarter amounted to $35.10 million (2018: $37.31 million).
Other operating income for the period decreased by 34% to $15.55 million (2018: $23.72 million), while administrative and other expenses decreased marginally to $113.20 million (2018: $113.30 million).
This resulted in profit from operation totalling $9.97 million, 37% less than the $15.85 million reported in 2018.
In addition, there was an 18% increase in the company’s finance and depreciation cost for the period to total $13.83 million relative to $11.68 million in 2018.
Loss before taxation amounted to $3.86 million (2018: Profit of $4.17 million). Taxes booked for the period amounted to $131,000 (2018: $1.01 million).
Consequently, net loss for the period amounted to $3.99 million compared to a net profit of $3.15 million in 2018, while net loss for the third quarter totalled $3.12 million (2018: Profit of $109,000).
The loss-per-share for the period amounted to $0.04 (2018: EPS $0.03), while loss-per-share of $0.031 was computed for the quarter (2018: EPS $0.001). The twelve-month loss-per-share amounted to $0.20. The stock traded at $1.76 as at November 14, 2019. The number of shares used in our calculation is 100,000,000.
Balance Sheet Highlights:
The company, as at September 30, 2019, recorded total assets of $223.18 million, an increase of 5% when compared to $212.99 million recorded last year. This was due to a rise in ‘Related parties’ to $71.77 million at the close of the period compared to $50.84 million in 2018.
Total Stockholders’ Equity as at September 30, 2019 closed at $111.51 million, compared to $143.06 million for the corresponding period last year. This resulted in a book value of $1.12 versus $1.43 in 2018.
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