April 3, 2024

Dolphin Cove Limited (DCOVE) for the year ended December 31, 2023, reported a 13% increase in revenue totalling US$17.11 million compared to US$15.11 million in the corresponding period last year. Revenue for the fourth quarter marginally declined to US$3.906 million compared to US$3.914 million for the comparable quarter of 2022.

Direct costs amounted to US$2.39 million (2022: US$1.73 million), this represents an increase of 38% year over year. Consequently, gross profit increased by 10% to US$14.72 million compared to US$13.38 million for the year ended December 31, 2022. The company booked gross profit of US$2.87 million for the fourth quarter versus US$3.36 million reported for the similar quarter of 2022.

Total expenses for the year ended December 31, 2023, amounted to US$10.39 million, a 13% increase relative to US$9.17 million reported in 2022. This upward movement in expenses was largely due to administrative expenses, which increased by 195% from US$1.30 million in 2022 to US$3.84 million in the period under review.

Profit before finance income and costs for the year ended December 31, 2023, amounted to US$4.27 million, a 4% increase relative to US$4.11 million reported in 2022. Loss before finance income and costs for the fourth quarter amounted to US$446,553 (2022: loss of US$17,706). Net finance cost totalled US$318,996, a 39% decline from the corresponding period last year (2022: US$525,140).

Pretax profit for the year ended December 31, 2023, amounted to US$3.95 million, a 10% increase relative to US$3.58 million reported in 2022. Pretax loss for the fourth quarter amounted to US$482,148 (2022: pretax loss of US$371,065).

Taxation for the year ended December 31, 2023, had a 46% increase to reach US$896,271 (2022: US$614,919). Net profit for the year amounted to US$3.06 million, a 3% increase from the US$2.97 million reported in 2022. For the fourth quarter, net loss was US$619,580 (2022: profit of US$2,455).

Earnings per share (EPS) for the year amounted to US$0.01/J$1.22 (2022: US$0.01/J$1.15), while loss per share (LPS) for the quarter totalled US$0.002/J$0.246 (2022: EPS of US$0.00001/J$0.001). The number of shares used in these calculations was 392,426,376.

Notably, DCOVE’s stock price closed the trading period on April 2, 2024, at a price of US$19.40 with a corresponding P/E ratio of 15.97x.

Balance Sheet Highlights:

The company’s assets totalled US$37.93 million; a 15% increase from the US$33.01 million booked in 2022. This increase was largely attributed to property, plant and equipment, which grew by 23% to US$26.37 million (2022: US$21.36 million).

Shareholder’s equity was US$31.91 million (2022: US$28.14 million), representing a book value per share of US$0.08 (2022: US$0.07).

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