Increased Costs Wipe out K.L.E profits for Q1

• K.L.E. Group Limited reported net loss of $19.07Mn (EPS: -20¢) for the three months ended March 31, 2020, despite a 46.1% (or $22.94Mn) increase revenue. This represents an almost hundredfold decline when compared to the $198k made in the same period of the previous year.
• The main contributor to this performance was an 83.9% (or $30.56Mn) increase in administrative expenses, a 57.9% (or $8.11Mn) increase in the cost of sales, a 19.5% (or $1.02Mn) increase in finance and depreciation costs as well as a 43.8% (or $2.8Mn) decline in other operating income.
• The company’s stock price has risen by 2.9% since the beginning of the year to end Wednesday’s trading session at $1.80. The stock currently trades at a P/B of 2.27x, which is slightly below the Junior Market average of 3.0x earnings.

 (Source: K.L.E Financials)