KEX reported nine months net loss of $60.64 million

April 14, 2021

Knutsford Express Services Limited for the nine months ended February 28, 2021 reported total revenue of $456.37 million, a 51% decrease when compared with the $925.23 million reported for the same period in 2020. For the third quarter, revenues amounted to $185.05 million, a 42% decrease relative to the $318.04 million booked for the corresponding period in 2020. According to KEX the decrease was driven by, “the ongoing COVID19 pandemic which continues to affect passenger travel negatively as a consequence of the continuation of government implemented curfews.”

“We however, have responded by increasing our courier service which have become very popular with individuals and companies alike. During this quarter we opened another courier outlet at Sovereign Center on the Boulevard on Washington,” as per KEX.

Administrative and general expenses for the period fell by 35% to total $514.56 million (2020: $797.46 million). Consequently, gross loss for the period amounted to $58.19 million versus a gross profit of  $127.77 million reported for the same period a year ago. For the quarter gross loss closed at $2.24 million, relative to a gross profit of $46.53 million booked in 2020.

Other income for the period amounted $706,601 (2020: nil). In addition, finance income rose to $8.29 million from $5.18 million in 2020. Finance costs, year to date, fell 42%, to total $11.44 million for the period down from $19.70 million recorded for 2020.

Loss before taxation for the nine months amounted to $60.64 million relative to  profit before taxation of $113.26 million reported in 2020. No taxes were incurred year to date compared to $10.08 million in the same period last year.

Consequently, net loss for the period amounted to $60.64 million relative a net profit of $103.18 million reported in February 2020. Net loss for the quarter, however, close at $1.66 million relative to a net profit of $36.42 mill​ion booked for the corresponding period in 2020.

Total comprehensive loss amounted to $55.48 million for the nine months ended February 28, 2021 (2020: income $105.14 million). While, for the quarter, total comprehensive loss closed at $1.06 million (2020: income $37.73 million).

As such, loss per share (LPS) for the nine months ended amounted to $0.12, relative to an earnings per share of $0.21 reported for the corresponding period. Whilst loss per share for the quarter amounted to $0.003, relative to $0.073 booked in 2020. The twelve-month trailing LPS amounted to $0.26. The number of shares used in our calculations is 500,000,015. KEX stock price closed the trading period at a price of $6.35 on April 13, 2021.

Management noted, thought the company is hearten by the impact COVID19 has made on profit there is still like at the end of the tunnel. Notably, “new business initiatives such as the investment in our Drax Hall business Centre development has resulted in the completion of phase 1 and all shops fully tenanted. Demand for the shops and the response to phase 2 which is due for completion in the first quarter of our new financial year (July 2021) is also very encouraging and signals positive contributions to our company in the ensuing 2021/22.”

Balance Sheet at a Glance:

As February 28, 2021,  total assets totaled $1.11 billion, $65.11 million less than the $1.18 billion recorded last year. The decrease in total assets was largely due to a decrease in ‘Other assets’ which declined by $76.45 million or 74% to total $26.39 million (2020: $102.84 million). ‘Cash and Banks Balances’  and ‘Short term investments’ also declined to $37.98 million (2020: $96.31 million) and $100.90 million (2020: $139.60 million) respectively. The movement was however offset by an increase in ‘Property, Plant & Equipment’ by 13% to $905.30 million (2020: $801.73 million).

Shareholder’s equity closed at $709.93 million (2020: $844.79 million). As such, the book value per share was $1.42 (2020: $1.69).


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