November 14, 2023
tTech Limited (tTech) for the nine months ended September 30, 2023, reported a 25% increase in Revenue totaling $354.03 million compared to $283.34 million in the corresponding period last year. Revenue for the third quarter had a 20% increase to close at $117.74 million compared to $98.06 million for the comparable quarter of 2022.
Cost of Sales amounted to $199.86 million (2022: $178.18 million), this represents an increase of 12% year over year. Consequently, gross profit increased by 47% to $154.17 million compared to $105.16 million for the nine months ended September 30, 2022. The company booked gross profit of $51.02 million for the third quarter versus $45.07 million reported for the similar quarter of 2022.
Administrative expenses increased by 28% to close at $119.13 million (2022: $92.96 million), while Other Operating expenses decreased by 28% from $21.63 million in 2022 to $15.60 million in the period under review. As a result, operating profit for the nine months ended September 30, 2023, amounted to $19.99 million, relative to operating loss of $7.45 million reported in 2022.
Finance cost for the nine months ended September 30, 2023, amounted to $1.45 million, relative to $1.59 million reported in 2022.
Finance income totalled $2.66 million (2022: $1.86 million).
Profit before Taxation for the nine months ended September 30, 2023, amounted to $21.21 million, relative to loss before taxation of $7.19 million reported in 2022. Profit before Taxation for the third quarter amounted to $6.68 million (2022: $3.36 million).
Taxation for the nine months ended September 30, 2023 increased to $3.94 million (2022: tax credit of $937,000).
Net Profit for the nine months amounted to $17.27 million, growing from net loss of $6.25 million reported in 2022. For the third quarter, Net Profit was $5.46 million (2022: $3.08 million). tTech highlighted that a combination of strategy, security first approach, data protection, and the annual Techcon conference were the primary drivers of profitability during the period.
Consequently, Earnings Per Share for the nine months amounted to $0.18 (2022: LPS of $0.10), while Earnings Per Share for the quarter totaled $0.05 (2022: EPS: $0.02). The twelve-month trailing EPS was $0.06 and the number of shares used in these calculations was 106,000,000.
Notably, tTech’s stock price closed the trading period on November 14, 2023 at a price of $2.34 with a corresponding P/E ratio of 40.84x.
Balance Sheet Highlights
The company’s assets totalled $328.84 million (2022: $306.79 million). ‘Current investments’ amounted to $30.10 million, (2022: nil), ‘Cash and cash equivalents’ increased 92% to close at $35.12 million, (2022: $18.25 million). However, ‘Non-current investments’ declined 90% to close at $3.26 million (2022: $32.89 million), offsetting the upward movement in total assets.
Shareholder’s equity was $237.56 million (2022: $231.49 million), representing a book value per share of $2.24 (2022: $2.18).
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