Home Businessuite Markets KLE Flagship, Tracks And Records Marketplace, Continues To Perform Exceptionally Well, Responsible For Over 90% Of Company’s Total Revenue.
KLE Flagship, Tracks And Records Marketplace, Continues To Perform Exceptionally Well, Responsible For Over 90% Of Company’s Total Revenue.

KLE Flagship, Tracks And Records Marketplace, Continues To Perform Exceptionally Well, Responsible For Over 90% Of Company’s Total Revenue.

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Chief Executive Officer for the K.L.E. Group Limited, Gary Matalon, is reporting that revenues for the year 2019 are showing a positive trend upwards and that in the third quarter revenue amounted to $52 million, which he said is similar to the earning in the second quarter of the year.

The positive trend is expected to continue into the end of the financial year, he reported in the company’s just released unaudited financial statements for the Nine months ended September 30, 2019.

Commenting further he noted that despite the above, the access to Tracks and Records Marketplace had a major impact on overall earnings of the company, with revenues for the nine months, down by 5% when compared to the similar period in the previous year.

Despite the negative impact the road work and resulting impeded access has had on Tracks and Records Marketplace revenue, that business unit continues to operate favorably contributing strong profits to the group.

Now that the road work appears to be completed for the most part, they are pleased that the revenue growth, which existed prior to commencement of road works, has resumed in the last quarter of 2019.

There was a decrease of $8.1m in Other Operating Income, which contributed to the overall revenue reduction as total revenue and other operating income amounted to $169.44 million compared to $180.37 million in the previous year.

Major resulting factors for the decrease is the one-off revenue from the management contract associated with Tracks and Records Montego start-up in the first half of 2018 reported Matalon.

The company’s focus on new and innovative marketing trends to capitalize on the improved road infrastructure in the last quarter is expected to drive significantly increased volumes of traffic to the restaurant, as he expects that the revenues of the restaurant will continue to improve for the last quarter of the year.

KLE, he said, will continue to employ cost savings strategies and monitor Key Performance Indicators to improve efficiencies and increase profitability.

For the first nine months of the year cost of sales amounted to $46.3 million compared to $51.2 million up to Sept. 30, 2018. a reduction he said which was in line with the decline in revenues as well as obsessive monitoring and cost management strategies which have been implemented as well.

The KLE flagship, Tracks and Records location in Marketplace, continues to perform exceptionally well and is responsible for over 90% of the company’s total revenue.

For the nine months ended September 30, 2019 operating expenses totaled $113.2 million, which is similar, when compared to the prior year amount of $113.3 million and is in line with management’s drive to operate lean and efficient while maximising profitability.

The company he said continues to operate more efficient and further increases in profitability is expected as a result.

Finance and depreciation costs went up during the period due to the increased cost of the company’s credit facility, which was successfully negotiated in the middle of the first quarter.

As a result of the operational improvements, the company is reflecting a reduction in profit from operations of $9.97 million compared to $15.84 million in 2018.

After Finance cost and taxation, the company’s Total Comprehensive Income amounted to negative $2.6 million compared to a comprehensive income of $3.3 million in the previous year.

As at the end of the third quarter the company is showing positive working capital ratios with Current Assets being greater than its Current Liabilities and in this reporting period, current liabilities amounted to $50.97m while total current assets amounted to $92.40 million.

Total Assets as at September 30, 2019 amounted to $223.19 million compared to Total Liabilities of $112.07 million.

The company is also reporting negative cash flows from operation and financing activities due mainly to the purchasing of assets and the paying off of the payable balances.

There was a positive cash flow from financing activities.  The company is reporting a net increase in cash and cash equivalents at the end of the period of approximately $4.2 million.

In his outlook, he reported to shareholders that KLE has had a positive trajectory over the past 3 years and that the investments made in 2018 to establish new revenue streams may have affected recent financial results, but have certainly put the business in a great position to reap the benefits as they prepare for future growth.

As the main revenue source for KLE, the impact the road work has had on Tracks and Records Marketplace underscores the importance of growth and diversification from this ‘single source’ of revenue for KLE.

Mr. Matalon also reported that the Bessa Project was progressing as planned and that he expects to begin the selling efforts in the early part of 2020.

The project will also be completed and delivered next year, which is aligned with the construction progress, customer interest has been intensifying.

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