January 15, 2025

Express Catering Limited (ECL)

Unaudited Financials for the Six Months Ended November 30, 2024

All figures are stated in USD unless otherwise indicated.

Express Catering Limited (ECL) for the six months ended November 30, 2024, reported a 1% decrease in revenue, totalling $11.46 million compared to $11.58 million in the corresponding period last year. Revenue for the second quarter had a 4% decrease, closing at $4.98 million compared to $5.18 million for the comparable quarter of 2023.

Cost of sales amounted to $3.38 million (2023: $3.83 million), representing a decrease of 12% year over year. Consequently, gross profit increased by 4% to $8.08 million compared to $7.75 million for the six months ended November 30, 2023. The company booked gross profit of $3.54 million for the second quarter versus $3.45 million reported for the similar quarter of 2023.

Depreciation and amortization increased by 39% to close at $1.88 million (2023: $1.36 million), while administrative expenses decreased by 18% from $3.97 million in 2023 to $3.26 million in the period under review. As a result, total expenses for the six months ended November 30, 2024, amounted to $5.33 million, a 3% decrease relative to $5.51 million reported in 2023.

Operating profit for the six months ended November 30, 2024, amounted to $2.71 million, a 21% increase relative to $2.25 million reported in 2023. Operating profit for the second quarter amounted to $1.07 million (2023: $846,457). Finance costs totalled $1.27 million, a 7% increase from the corresponding period last year (2023: $1.19 million).

Foreign exchange gain for the six months ended November 30, 2024, amounted to $13,004, a 156% increase relative to the foreign exchange loss of $23,395 reported in 2023. Foreign exchange gain for the second quarter amounted to $5,311 (2023: $1,237).

Profit before tax for the six months ended November 30, 2024, had a 41% increase to reach $1.45 million (2023: $1.03 million). Net profit for the six months amounted to $1.45 million, a 41% increase from the $1.03 million reported in 2023. For the second quarter, net profit was $443,475 (2023: $187,240).

Consequently, earnings per share for the six months amounted to $0.14 (2023: EPS: $0.10), while earnings per share for the quarter totalled $0.03 (2023: EPS: $0.01). The twelve-month trailing EPS was $0.11, and the number of shares used in these calculations was 1,637,500,000.

Notably, ECL’s stock price closed the trading period on January 14, 2025, at a price of $3.23 with a corresponding P/E ratio of 18.28x.

Balance Sheet Highlights

The company’s assets totalled $54.89 million (2023: $56.36 million). This decrease in total assets was attributable to the right-of-use asset, which amounted to $26.06 million (2023: $27.64 million). Additionally, property, plant, and equipment also decreased to reach $6.76 million (2023: $6.97 million).

Shareholders’ equity was $7.90 million (2023: $7.45 million), representing a book value per share of $0.76 (2023: $0.71).

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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein