KEX reports 82% decline in year end net profits

September 14, 2020

Knutsford Express Services Limited (KEX), for the year ended May 31, 2020 reported total revenue of $1.02 billion, relative to $1.15 billion reported for the prior financial year. Revenue for the last quarter amounted to $96.45 million, a decrease of 68% from the $304.68 million for the same period last year.

Administrative and general expenses closed the year at $974.85 million, a 4% growth from the $936.25 million recorded in 2019. Within the quarter, administrative expenses were down 33% to close at $177.39 million (2019: $265.22 million).

As such, gross profit for the year decreased by 78% to total $46.83 million, compared to $210.36 million in 2019. Gross loss for the fourth quarter totalled $80.94 million versus gross profit of $39.46 million recorded in the prior comparable period.

Other income totalled $9,611 for the period relative to $1.69 million for 2019. Finance income increased by 133% to total $19.33 million for the year (2019: $8.29 million), while finance cost  fell 13% to close at $23.65 million versus $27.15 million booked for the 2019.

Profit before taxation amounted to $42.52 million (2019: $193.18 million). While for the quarter, loss before taxation closed at $70.74 million versus profit before taxation of $34.85 million booked in the same period last year.

After incurring taxes of $8.96 million (2019: $4.71 million), Net profit closed at $33.56 million, 82% less than the $188.47 million for 2019, while Net loss for the quarter was $69.62 million relative to $30.54 million reported for the prior year. Total comprehensive income amounted to $25.76 million (2019: $188.43 million).

As such, earnings per share (EPS) for the year amounted to $0.07 (2019: $0.38), while LPS for fourth quarter amounted to $0.14 relative to EPS of $0.06 for the same quarter last year. The number of shares used in our calculations is 500,000,015. KEX last traded on September 11, 2020, at $6.90.

Balance Sheet at a Glance:-

KEX posted total asset of $1.09 billion, 3% more than the $1.06 billion booked as at May 31, 2019. This was primarily due to an increase in ‘Property, Plant and Equipment’ and ‘Short term Investment’ which closed the period at $849.08 million (2019: $732.70 million) and $123.60 million (2019: $122.46 million) respectively.

Shareholder’s equity closed at $765.41 million relative to the $779.65 million reported last year. As such, book value per share was $1.53 (2019: $1.56).

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2020-09-14T16:47:35-05:00