Knutsford Express Services Limited (KEX), for the three months ended August 31, 2022 reported total revenue of $415.09 million, a 79% increase when compared with the $232.56 million reported for the same period in 2021. Management noted that this was due in large part to strong customer demand for passenger travel as well as income contributions from the courier and rental business.

Administrative and general expenses rose 39% for the quarter to total $302.94 million (2021: $217.27 million). This resulted in gross profit of $112.15 million (2021: $15.30 million).

Finance costs increased to $15.30 million for the period from $5.54 million reported in 2021. In addition, finance income fell from $1.54 million in 2021 to $79,772 in 2022, representing a decline of 95%.

As such KEX’s profit before taxation for the three months period amounted to $96.93 million, relative to $11.30 million reported in 2021. Taxation of $12.70 million were incurred for the quarter (2021: nil). Consequently, net profit amounted to $84.23 million (2021: $11.30 million).

Total Comprehensive income as at the end of the quarter amounted to $84.23 million (2021: $11.30 million).

Earnings per share (EPS) for the quarter amounted to $0.17 (2021: $0.02). The twelve-month trailing EPS amounted to $0.37. The number of shares used in our calculations is 500,000,015. Notably, KEX’s stock price closed the trading period on October 13, 2022 at $8.00, with a corresponding price to earnings ratio of 21.79 times.

KEX added, “During the first quarter of 2022, a number of initiatives were undertaken which will contribute to further improvements by our team in terms of greater efficiencies, smarter route planning and income diversification. In addition, our subsidiary, KE Connect Limited has been repositioned to make a greater contribution with its focus on the charter and travel market.”

Balance Sheet at a Glance:

As at August 31, 2022, assets totalled $1.52 billion, $209.02 million more than the $1.31 billion recorded last year. The increase in total assets was largely attributable to increases in ‘Investment property’ which closed at $482.68 million (2021: 110.45 million).

Shareholder’s equity closed at $835.33 million (2021: $681.04 million). As such, the book value per share was $1.67 (2021: $1.36).

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