Transportation and courier services provider Knutsford Express Limited (KEL) saw marginal growth in its net profit for 2024 despite a significant increase in its annual revenue.

For the year ended May 31, 2024, the company reported net profit after tax of $309.46 million, which was 1.6 per cent more than the $304.36 million earned in the previous year. This resulted in earnings per share increasing from $0.61 to $0.62.

During the year, Knutsford Express saw its revenues grow to $1.96 billion when compared to $1.65 billion in 2023, representing an 18.8 per cent increase.

This increase in revenues was, however, offset by a 25 per cent jump in administrative and general expenses. Staff-related costs, security services, motor vehicle rental, insurance, toll, café expenses, and part and supplies were among the expenses that rose significantly over the 12 months.

Expenses as at May 31, 2024 was $1.66 billion, up from $1.33 billion at the end of 2023. As a result operating profit rose by 3.5 per cent to $421.99 million.

With higher finance income and lower finance costs, Knutsford Express improved its net profit before tax to $387.74 million. For 2023, the company generated $346.51 million.

Junior Market tax amnesty ends

In January, Knutsford Express exhausted the second half of its 10-year tax amnesty as a result of listing on the Junior Market of the Jamaica Stock Exchange on January 14, 2014. Instead of paying 12.5 per cent of income tax on profit, the company is now liable for paying the full taxable amount of 25 per cent on its profits.

The company is hopeful that it will only need to pay the full taxable for the period after the end of the amnesty.

“The financial statements have been prepared on the basis that the company will have the full benefit of the tax remissions. Subject to agreement with the Ministry of Finance and Planning, remission will be sought for periods up to January 14th, 2024 totalling $116,474,261,” a section of the notes on the financial statement read.

For the year, total assets increased from $1.75 billion to $1.96 billion. Property, plant and equipment; investment properties; and cash and bank balances were the major contributors.