Higher Revenues Support Rise in tTech’s YTD Net Profit

• Owing to a 20.0% increase in revenues, for the 6-months ending June 2021, tTech Limited reported a 51.0% year over year rise in net profit to $8.62Mn (EPS: $0.15).
• Revenues improved as tTech continued to benefit from the momentum realized in Q1 with the addition of several Cybersecurity related projects to its roster, and the continuation of the Data Protection Service campaign which has strengthened its pipeline. Also contributing positively was the company’s highly successful business technology event, TechCon, that was held virtually this year on May 18‐19.
• The rise in revenues was also sufficient to outweigh the 19.9% and 23.5% expansion in admin expenses and direct costs, respectively.
• tTech has entered the second phase of the Junior Market incentive scheme where 50% of the normal tax rate equivalent to 12.5%, applies to its profits during the second five years of listing on the Junior Market of the Jamaica Stock Exchange. Therefore, tax expenses will begin to adversely impact net income. However, the company is eligible for the Employment Tax Credit which will further reduce the rates payable to 8.75% for the next 5 years and 17.5% thereafter, which will ease the full effects of taxation on its bottom-line.
• tTech’s stock price has appreciated by 2.3% since the start of the year and closed Wednesday’s trading session at a price of $4.40 per share. At this price, the stock trades at a P/E ratio of 18.3x earnings which is below the Junior Market average of 21.0x.

Source: (tTech Financials)