KEX reports 6% increase in year-end net profit

Date: August 19, 2019

Knutsford Express Services Limited (KEX), for the year ended May 31, 2019 reported total revenue of $1.15 billion, relative to $926.15 million reported for the prior financial year. Revenue for the last quarter amounted to $304.68 million, an increase of 22% from the $249.02 million for the same period last year.

Administrative and general expenses closed the year at $936.25 million, a 29% growth from the $727.99 million recorded in 2018. Within the quarter, administrative expenses were up 38% to close at $265.22 million (2018: $192.81 million).

As such, gross profit for the year increased by 6% to total $210.36 million, compared to $198.16 million in 2018. Gross profit for the fourth quarter totalled $39.46 million down 30% (2018: $56.21 million).

Other income totalled $1.69 million for the period relative to $1.50 million for 2018, a 13% increase. Finance income increased tremendously by 267% to total $8.29 million for the year (2018: $2.26 million), while finance cost  rose 24% to close at $27.15 million versus $21.96 million booked for the 2018.

Net profit closed at $188.47 million, 6% more than the $177.59 million for 2018, while Net Profit for the quarter was $30.54 million, this represented a decrease of 38% over the $49.28 million reported for the prior year.

As such, earnings per share (EPS) for the year amounted to $0.38 (2018: $0.36), while for the EPS for fourth quarter amounted to $0.06 relative to $0.10 for the same quarter last year. The number of shares used in our calculations is 500,000,015. KEX last traded on August 19, 2019, at $11.15.

Balance Sheet at a Glance:-

KEX posted total asset of $1.06 billion, 42% more than the $751.25 million booked as at May 31, 2018. This was primarily due to an increase in ‘Property, Plant and Equipment’ and ‘Short term Investment’ which closed the period at $732.70 million (2018: $435.81 million) and $122.46 million (2018: $92.76 million) respectively.

Shareholder’s equity closed at $779.65 million relative to the $626.22 million reported last year. As such, book value per share was $1.56 (2018: $1.25).

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.

 

2019-08-19T19:20:59+00:00