Knutsford Express Services Limited (KEX) for the nine months ended February 29, 2024, reported a 19% increase in Revenue totaling $1.53 billion compared to $1.28 billion in the corresponding period last year. Revenue for the third quarter had a 21% increase to close at $565.60 million compared to $467.87 million for the comparable quarter of 2023.

Administrative and General Expenses amounted to $1.20 billion (2023: $1.00 billion), this represents an increase of 20% year over year. Consequently, gross profit increased by 19% to $329.48 million compared to $277.97 million in 2023. The company booked gross profit of $131.94 million for the third quarter versus $90.41 million reported for the similar quarter of 2023.

Finance Income increased by 246% to close at $15.16 million (2023: $4.38 million), while Finance costs decreased by 6% from $46.91 million in 2023 to $44.05 million in the period under review. As a result, profit before taxation for the nine months amounted to $300.58 million, a 28% increase relative to $235.44 million reported in 2023.

Taxation charge for the nine months amounted to $31.93 million, a 33% increase relative to $24.06 million reported in 2023. Taxation charges for the third quarter amounted to $12.95 million (2023: $5.87 million).

Net Profit totalled $268.65 million, a 27% increase from the corresponding period last year. (2023: $211.39 million). For the third quarter, net profit was $110.80 million (2023: $68.28 million).

Consequently, Earnings Per Share for the nine months amounted to $0.54 (2023: EPS: $0.42), while Earnings Per Share for the quarter totaled $0.22 (2023: EPS: $0.14). The twelve-month trailing EPS was $0.72, and the number of shares used in these calculations was 500,000,015.

Notably, KEX’s stock price closed the trading period on April 15, 2024, at a price of $11.49 with a corresponding P/E ratio of 15.89x.

Balance Sheet Highlights

The company’s assets totalled $1.93 billion (2023: $1.63 billion). This resulted from a 26% increase in ‘Property, plant and equipment’ closing at $653.34 million. KEX highlighted the growth in assets encapsulates a robust quarter with the contributions of our investment in the Drax Hall Business Centre and an expanded fleet of coaches.

Shareholder’s equity was $1.26 billion (2023: $962.49 million), representing a book value per share of $2.52 (2023: $1.92).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.