JAM | May 3, 2023

Marginal climb in KLE’S 2022 profitability

/ Our Today

Reading Time: 2 minutes
David Alexander Shirley

Durrant Pate/ Contributor

Restaurant and entertainment company, K.L.E Group Limited eked out a marginal improvement in its profitability in 2022.

Net profit for the year ended December 31, 2022 amounted to J$24.96 million, up from J$14.33 million in 2021. For the December quarter, KLE booked pre-tax profit of J$11.10 million, down from the J$91.92 million recorded twelve months earlier.

Adjustment to discontinued operation closed the year at J$27.21 million (2021: nil). KLE reported no tax charges for the year under review in comparison to taxation of J$8.24 million in the year prior year.

Total comprehensive income for 2022 closed at J$24.96 million relative to a profit of J$13.80 million in 2021. Other operating income declined by J$60.42 million to J$18.06 million relative to J$78.48 million booked in 2021.

Big cut in expenses

In addition, administrative and other expenses declined by 89 per cent from J$21.36 million in 2021 to J$12.46 million for the year ended December 31, 2022. Income from operations closed 2022 at J$5.59 million, down from J$57.12 million in 2021.

For the last quarter, profit from operations amounted to J$10.82 million compared to J$72.16 million in 2021. Finance and depreciation costs rose to J$11.33 million vis-a-vis J$16.17 million for 2021, representing a 30 per cent decrease.

Earnings per share (EPS) amounted to J$0.25 for the year relative to J$0.14 in 2021. The stock traded last week at $2.02 with a corresponding P/E of 8.19 times.

Balance Sheet Highlights

KLE, as at December 31, 2022, recorded total assets of J$142.82 million, down 32 per cent when compared to J$209.79 million in 2021. This decline was primarily attributable to an 80 per cent decrease in “Cash and Cash Equivalent” to J$11.46 million (2021: J$57.23 million).

Total Stockholders’ equity as at December 31, 2022 was J$33.61 million, relative to shareholders’ equity of J$8.65 million reported last year, resulting in a book value per share of J$0.34 compared to a book value per share of J$0.09 as at December 2021.


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