January 13, 2023
Kex reported total revenue of $813.05 million, a 72% or $339.83 million increase when compared with the $473.22 million reported for the same period in 2021. For the second quarter, revenues increased by 65% to close the period at $397.96 million versus $240.66 million in 2021. Management noted that, “One of our key initiatives, the Knutsford Express Business Centre, in Drax Hall provides synergies as a key logistics point for our business customers in addition to creating a diversified income stream going forward along with our core transportation business.”
Administrative and general expenses rose by 38% to total $625.48 million (2021: $452.35 million). Consequently, the Company reported a gross profit of $187.57 million compared to $20.87 million for the same period a year ago. While, for the quarter, gross profit amounted to $75.42 million relative to a gross profit of $5.56 million booked in 2021.
Finance costs increased by 168% to $27.75 million for the period under review from $10.35 million for the same period in 2021, while finance income fell to $1.47 million (2021: $2.73 million) in the first six months of 2022.
Profit before taxation amounted to $161.30 million, relative to a gain of $13.43 million reported for the similar period in 2021. Taxation for the period amounted to $18.19 million (2021: nil). Therefore, net profit closed at $143.11 million relative to a profit of $13.43 million booked the prior year. For the second quarter, KEX recorded net profit of $58.88 relative to net profit of $2.13 million recorded in 2021’s second quarter.
Total comprehensive income amounted to $143.11 million relative to comprehensive profit of $15.02 million booked for the six months ended November 30, 2021.
As such, earnings per share (EPS) for the second quarter amounted to $0.118, relative to a loss per share of $0.001 booked in 2021, while for the six months the EPS was $0.29 (2021: EPS $0.03). The twelve-month trailing EPS amounted to $0.43. The number of shares used in our calculations is 500,000,015. KEX’s stock price closed the trading period on January 12, 2023, at a price of $9.51 with a corresponding P/E of 22.35x.
Balance Sheet at a Glance:
As of November 30, 2022, total assets totalled $1.56 billion, $246 million more than the $1.31 billion recorded last year. The increase in total assets was due to increases in ‘Investment Property’ and ‘Investment’ which totalled $485.37 million (2021: $110.45 million) and $19.30 million (2021: nil) respectively.
Shareholder’s equity closed at $894.21 million (2021: $$680.81 million). As such, the book value per share was $1.79 (2021: $1.36).
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.