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).

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