KLE sinking deeper in the red as losses jump by more than 600%
Financials rattled by COVID-19, which company is still recovering fromWednesday, June 02, 2021
BY DURRANT PATE
Restaurant company KLE is sinking deeper into the red, as its year-end losses have climbed by more than 600 per cent.
The company, which manages the Tracks and Records Restaurant on Constant Spring Road, Kingston 10, was hit hard by the COVID-19, which saw its business taking a nose dive and buckled under the pandemic-induced health and safety protocols. Total comprehensive loss for the year ended December 2020 amounted to $104.49 million relative to a loss of $14.84 million in 2019.
As a result, KLE loss before taxation amounted to $102.33 million, relative to a loss of $17.49 million booked December 31, 2019. For the December quarter, loss before tax amounted to $37.90 million, relative to a loss of $13.63 million recorded twelve months earlier.
Net loss jumps to $103.96 million
The company reported tax charge in the sum of $1.63 million relative to tax credit of $682,000 million a year earlier. As such, KLE recorded net loss of $103.96 million for 2020 compared to net loss of $16.81 million for 2019.
For the fourth quarter, net loss closed at $39.52 million compared to $12.81 million for 2019. KLE for the year ended December 31, 2020, recorded total revenue of $151.38 million coming from $224.57 million in 2019, representing a 33 per cent decrease.
Revenue for the December quarter declined 38 per cent to $43.53 million coming from the $70.68 million booked in 2019. Cost of sales for the year decreased by 31 per cent to $44.37 million compared to the $64.25 million reported in 2019.
As a result, gross profit was down 33 per cent to total $107.01 million relative to $160.33 million in 2019 while, gross profit fell 39 per cent to $32.31 million for the quarter ended December 31, 2020. Other operating income fell by 92 per cent to $505,000 relative to $6.09 million booked in the prior corresponding period.
Expenses increased, resulting in KLE posting losses from operations
In addition, administrative and other expenses increased by nine per cent from $170.51 million in 2019 to $186.06 million for the year ended December 31, 2020. Consequently, loss from operations amounted to $78.55 million in contrast to the loss of $4.10 million for the same period last year.
Operating loss for the quarter amounted to $38.67 million compared to the loss of $14.07 million posted in 2019. Finance and depreciation costs rose to $10.55 million when compared to $8.65 million for the same period of 2019, a 22 per cent increase.
The Loss Per Share (LPS) amounted to $1.04 for 2020 to a LPS of $0.17 in 2019, while for the quarter, the LPS amounted to $0.40 versus LPS $0.13 documented twelve months earlier.
The company, as at December 31, 2020, recorded total assets of $284.75 million, an increase of 33 per cent when compared to $214.50 million in 2019. This increase was attributable to a 374 per cent jump in “Property, Plant & Equipment” which amounted to $108.56 million and “Right of use assets” which stood at $32.79 million.
Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at https://bit.ly/epaper-login