Technology company tTech Limited had a less than stellar performance in 2021 with year-end net profits declining by 63 per cent.
Pre-tax profit contracted by 64 per cent from J$22.48 million in 2020 to J$8.18 million for the year in review. Tax credit of $45,000 was recorded (2020: nil), thus net profit for 2021 amounted to J$8.22 million versus $22.48 million booked in 2020.
Net loss for the December quarter totalled J$8.28 million relative to a profit of J$14.27 million in 2020. Operating profit for 2021 totalled J$8.52 million, 63 per cent below the J$23.15 million booked in 2020.
Operating loss for the December quarter amounted to J$9.80 million relative to a profit of J$14.76 million documented for the comparable quarter of 2020.
Marginal increase in revenues
Revenues for 2021 went up by nine per cent to J$392.16 million compared to J$359.48 million for the prior financial year. Revenue for the last quarter closed at J$90.94 million relative to J$96.85 million in 2020.
Cost of sales rose by 19 per cent to J$136.15 million from the J$113.99 million reported for December 2020. Despite this, gross profit increased by four per cent for the year to J$256.01 million (2020: J$245.49 million).
Gross profit for the quarter fell 18 per cent to close at J$54.76 million compared to J$67.11 million booked for the corresponding quarter of 2020. Other income and gains totalled J$17.17 million for the year relative to a gain of J$14.40 million in 2020, while administrative expenses rose 11 per cent year-over-year to J$229.67 million (2020: J$206.53 million).
Other operating expenses for the year reflected a 16 per cent increase year-over-year to J$34.98 million compared to J$30.21 million recorded in 2020. Finance income rose 12 per cent year-over-year from J$1.73 million in 2020 to J$1.94 million for the year ended December 31, 2021. Moreover, tTech booked a finance cost of J$2.29 million relative to J$2.39 million booked the previous year.
The management reports that, “Inventory adjustments contributed significantly to the less than stellar results, but such write-offs are not expected to reoccur. In addition, the delivery of computer and network equipment was delayed because of the shortage of semiconductor chips globally. The impact was that some customer projects could not be completed in the year and we were unable to bill for those projects and realise the associated revenues.”
As at December 31, 2021, tTech Limited reported total assets of J$313.90 million, a one per cent decline when compared to the J$317.25 million reported in 2020. This was as a result of a 72 per cent reduction in ‘Investments’ to amount to $10.16 million (2020: J$36.17 million).
Shareholders’ Equity as at December 31, 2021 was J$241.83 million compared to J$239.22 million for the comparable period of 2020. This resulted in a book value per share of J$2.28 compared to J$2.28 the prior year.