CAC 2000 Turns Around Net Loss

• CAC 2000 LTD reported a net profit of $7.24Mn (EPS: $0.06) for the nine months ended July 31, 2020, compared to a net loss of $39.47Mn (EPS: -$0.31) made in the corresponding period in 2019.
• The improvement in the bottom-line was supported by an 8% (or $190.54Mn)  increase in revenue, coupled with a 3.6% (or $11.18Mn) reduction in administration and other expenses.
• However, this outturn was tempered by the 22.2% (or $110.76Mn) increase in direct costs and a 95.0% (or $44.84Mn) fall in other income.
• Management noted that the company is managing and even pivoting to build on new growth opportunities despite the COVID-19 pandemic. This was evident in the realization of the highest quarterly revenues for this financial year, the reduction in operational expenses, and efforts to drive down inventories.
• The company’s stock price has declined by 20.7% since the start of the year, closing Wednesday’s trading session at $11.90. At this price, the stock currently trades at a P/B of 4.1x, which is above the Junior Market Distribution Sector Average of 2.9x.

(Source: CAC Financials)