KEX reports nine months net profit of $45.40 million

April 14, 2022

Knutsford Express Services Limited for the nine months ended February 28, 2022 reported total revenue of $774.41 million, a 70% increase when compared with the $456.37 million reported for the same period in 2021. For the third quarter, revenues amounted to $301.19 million, a 63% increase relative to the $185.05 million booked for the corresponding period in 2021. According to KEX, “the increase was driven by the ongoing global recovery in travel.”

Administrative and general expenses for the period rose by 39% to total $715.87 million (2021: $514.56 million). Consequently, gross profit for the period amounted to $58.54 million versus a gross loss of $58.19 million reported for the same period a year ago. For the quarter, gross profit closed at $42.71 million, relative to a gross loss of $2.24 million booked in 2021.

Other income for the period amounted $997,968 (2021: $706,601). In addition, finance income declined to $2.87 million from $8.29 million in 2021. Finance costs, year to date, rose 49%, to total $17 million for the period up from $11.44 million recorded for 2021.

Profit before taxation for the nine months amounted to $45.40 million relative to a loss before taxation of $60.64 million reported in 2021. No taxes were incurred year to date (2021: nil). Profit before tax for the quarter amounted $37.02 million, relative to a loss of $1.66 million booked the comparative quarter of 2021.

Consequently, net profit for the period amounted to $45.40 million relative a net loss of $60.64 million reported in February 2021. Net profit for the quarter, however, closed at $37.02 million relative to a net loss of $1.66 mill​ion booked for the corresponding period in 2021.

Total comprehensive income amounted to $52 million for the nine months ended February 28, 2022 (2021: loss of $55.48 million). While, for the quarter, total comprehensive income closed at $36.98 million (2021: loss of $1.06 million).

As such, earnings per share (EPS) for the nine months ended amounted to $0.09, relative to a loss per share of $0.12 reported for the corresponding period. Whilst earning per share for the quarter amounted to $0.074, relative to a LPS of $0.003 booked in 2021. The twelve-month trailing EPS amounted to $0.02. The number of shares used in our calculations is 500,000,015. KEX stock price closed the trading period at a price of $7.93 on April 14, 2022, with a corresponding P/E of 394.45 times.

Management noted, “ Recent global events have significantly pushed the price of fuel to record highs,. While the has impacted us we also view this as a great opportunity to increase ridership and revenue as motorist have the opportunity to enjoy the huge cost savings and benefits in travelling cross country with us.”

Balance Sheet at a Glance:

As February 28, 2022, total assets totaled $1.32 billion, $207.45 million more than the $1.11 billion recorded last year. The increase in total assets was largely due to a increase in ‘Rights of use Asset’ which rose by $125.53 million to total $130.84 million (2021: $5.32 million). ‘Investment Property’ also contributed to the rise in the  total asset base by closing at $110.45 million (2021: nil).

Shareholder’s equity closed at $717.79 million (2021: $709.93 million). As such, the book value per share was $1.44 (2021: $1.42).


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