KLE Group reports profit for 2017.
Profit at KLE Group fell 95 percent for 2017 to $9 million from $162 million in 2016 but the 2016 result was boosted by a one off gain from sale of shares in a subsidiary, amounting to $164 million.
Without the one gain profit would have increased sharply from just under $2 million in 2016. Earnings per share ended at 6 cents. The company actually suffered a loss in the order of $12 million in the December quarter. Sale revenues that rose 10 percent for the year, to $215.4 million from $196 million in 2016.
Gross profit margin remained at 68 percent in both years while gross profit rose by 9 percent over 2016. Other income closed the year at $17 million, remaining constant with 2016 excluding one off gains.
Other operating and administrative expenses rose just 6 percent to $152.5 million while Finance cost declined to $2.4 million from $2.76 million in 2016.
Importantly, gross cash flow brought in $22 million but growth in receivables and reduction in payables reduced the net cash for the year and investments activities left cash at the $7 million level.
At the end of December, shareholders’ equity stood at $140 million with borrowings at just $14 million. Net current assets ended the period $64 million and current liabilities at $57 million.
The stock traded at $2.50 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 12.5 times 2018 IC Insider.com forecasted earnings of 20 cents.
