TTA - TTA Holdings

[System]

TTA Holdings Limited (TTA) is the holding company of TEAC Australia engaged in the distribution of TEAC branded audio and visual consumer electronics products in Australia. TEAC's head office is located in Thomastown, Victoria.

http://www.ttaholdings.com.au

 

[greggles]

TTA on the road back to profitability? This is ordinarily a very thinly traded stock but today it has blown up with the share price jumping 125% to 5.4c on what is abnormally high volume for the company. In response to an ASX Price Query issued earlier today, the company said the following:

As announced in the Company’s Appendix 4C and Quarterly Activities Report (lodged 30 April 2021) and more recently the Preliminary Accounts for the year ended 31 March 2021 (lodged 31 May 2021), the Company has reported a strong uplift in sales, with the net operating loss (excluding the one-off gain of $1.0m from sale of the Company’s Thomastown site) for the year of $0.19m, a significant improvement from the corresponding year (2020: $2.7m loss). This improvement has been driven by strong sales growth over the period, a continued focus on operating cost efficiencies and shift in sales mix to higher margin products. Barring any unforeseen circumstances, the Company is cautiously optimistic it remains on track to generate positive cashflows from operations in coming periods.

While I accept what the company says, I only have one question in relation to it. The Preliminary Accounts were announced to the market on 31 May 2021. Why then did it take three weeks for the buying we saw today to start? One would think that it would have started much closer to the date of the announcement of the Company's financials. The improvement in the financial results was apparent right away.