Profitable run converted into quarterly losses

Financial losses at Knutsford Express continue to mount as the impact of the COVID-19 pandemic is severely hurting the luxury coach and courier service company.

Knutsford Express, which is publicly traded on the Jamaica Stock Exchange, has seen its consolidated losses escalate to $60.64 million for the nine-month period ended February 28, 2021. Losses before taxation for the period under review amounted to $60.64 million relative, reversing the pre-tax profit of $113.26 million reported during the same period in 2020.

No taxes were incurred year-to-date compared to $10.08 million in the same period last year. Consequently, net loss for the three quarters amounted to $60.64 million relative to a net profit of $103.18 million reported in February 2020.

Net losses for the February 2021 quarter closed at $1.66 million relative to a net profit of $36.42 million booked for the corresponding period in 2020. Total comprehensive losses amounted to $55.48 million for the nine-month period, while for the February quarter total comprehensive loss closed at $1.06 million, coming from an income of $37.73 million in 2020.

Revenues hit hard by COVID-19

Total revenues for the last three quarters managed to reach $456.37 million, which represented a 51 per cent decrease when compared with the $925.23 million reported for the same period in 2020. For the third quarter, revenues amounted to $185.05 million, a 42 per cent decrease relative to the $318.04 million booked for the corresponding period in 2020. 

The sharp decline in revenues has been blamed on the pandemic, which has hit the company’s financial performance and its revenues heavily. The company reports that, “the ongoing COVID-19 pandemic which continues to affect passenger travel negatively as a consequence of the continuation of government implemented curfews”, was mostly responsible for the sharp decline in revenues.

According to Knutsford Express, “we however, have responded by increasing our courier service, which has become very popular with individuals and companies alike. During this quarter we opened another courier outlet at Sovereign Center on the Boulevard on Washington.”

Administrative and general expenses for the three quarters fell by 35 per cent to total $514.56 million coming from $797.46 million in 2020. Consequently, gross loss for the period amounted to $58.19 million versus a gross profit of $127.77 million reported for the same period a year ago.

High expectation of Drax Hall Development

In the meantime there is high expectation of the company’s Drax Hall development in St Ann, which is now being rolled out.

According to the management, “new business initiatives such as the investment in our Drax Hall Business Centre development has resulted in the completion of phase 1 and all shops fully tenanted. Demand for the shops and the response to phase 2 which is due for completion in the first quarter of our new financial year (July 2021) is also very encouraging and signals positive contributions to our company in the ensuing 2021-22”.

The management was quick to point out that, despite the negative effects of the pandemic, there is still light at the end of the tunnel.

Total assets also declined

As February 28, 2021, total assets totaled $1.11 billion, $65.11 million less than the $1.18 billion recorded last year. The decrease in total assets was largely due to a decrease in ‘Other assets’ which declined by $76.45 million or 74 per cent to total $26.39 million (2020: $102.84 million).

‘Cash and Banks Balances and short-term investments also declined to $37.98 million (2020: $96.31 million) and $100.90 million (2020: $139.60 million) respectively. The movement was, however, offset by an increase in ‘Property, Plant & Equipment’ by 13 per cent to $905.30 million (2020: $801.73 million).