Erases last year’s loss to post net profit of J$45.4 million

Jamaica-based transportation company Knutsford Express Services is on the rebound, erasing the losses made last year to post a healthy nine-month profit.

Knutsford Express, for the nine months ended February 28, 2022, made a net profit of J$45.40 million relative to a loss before taxation of J$60.64 million during the comparable period in 2021. No taxes were incurred year to date.

Net profit for the February quarter amounted to J$37.02 million, relative to a loss of J$1.66 million booked the comparative quarter of 2021. Total comprehensive income for the period under review amounted to J$52 million compared to a loss of J$55.48 million for 2021. 

For the third quarter, total comprehensive income closed at $36.98 million, reversing the loss of J$1.06 million in 2021. During the combined three quarters, Knutsford Express, shares of which are publicly traded on the Jamaica Stock Exchange, reported total revenue of J$774.41 million.

70% rise in revenues

This represents a 70 per cent increase when compared with the J$456.37 million reported for the same period in 2021. For the third quarter, revenues amounted to J$301.19 million, a 63 per cent increase relative to the J$185.05 million booked for the corresponding period in 2021. 

According to the management, “the increase was driven by the ongoing global recovery in travel. Recent global events have significantly pushed the price of fuel to record highs; while this 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.”

Administrative and general expenses for the period rose by 39 per cent to total J$715.87 million (2021: J$514.56 million). Consequently, gross profit for the review period amounted to J$58.54 million versus a gross loss of J$58.19 million reported for 2021.

For the quarter, gross profit closed at J$42.71 million, relative to a gross loss of J$2.24 million booked in 2021. Other income for the period amounted J$997,968.

In addition, finance income declined to J$2.87 million from J$8.29 million in 2021. Finance costs, year to date, rose 49 per cent, to total J$17 million for the period up from J$11.44 million recorded for 2021.

As February 28, 2022, total assets totaled J$1.32 billion, J$207.45 million more than the J$1.11 billion recorded last year. The increase in total assets was largely due to an increase in ‘Rights of use Asset’ which rose by J$125.53 million to total J$130.84 million (2021: $5.32 million)’.

‘Investment Property’ also contributed to the rise in the total asset base by closing at J$110.45 million (2021: nil). Shareholder’s equity closed at J$717.79 million (2021: J$709.93 million).

As such, the book value per share was J$1.44 (2021: J$1.42).