Gross loss amounts to $55.95 million reversing the $81.25 million profit in 2019

Transport company Knutsford Express is reporting a poor half year performance with a big drop in both revenues and profits.

For the half yearly period ended November 30, 2020 revenues were down 55 per cent, or $335.87 million, to $271.32 million when compared with the $607.19 million reported for the same period in 2019. For the second quarter, revenues dropped by 47 per cent to close the period at $149.54 million, down from the $282.67 million recorded in 2019.

Administrative and general expenses fell by 38 per cent to total $327.27 million coming from $525.94 million in 2019. Consequently, the company described as Jamaica’s most effecient and reliable coach/public transportation service reported a gross loss of $55.95 million.

This reverses the profit of $81.25 million made during the same period a year ago. For the second quarter, Knutsford Express gross loss amounted to $29.52 million relative to a gross profit of $23.87 million booked in 2019.

Finance costs decreased by 42 per cent to $7.35 million for the period under review from $12.75 million for the same period in 2019, while finance income fell to $4.34 million in the first six months of 2020. Finance income in 2019 was $4.42 million.

2019 profits reversed to post pre-tax losses in November 2020

Loss before taxation amounted to $58.97 million for the period under review, reversing the profit of $72.92 million reported for the similar period in 2019. There was no tax charge for the period under review, however tax charges of $6.16 million was reported in 2019. 

Arising from this, Knutsford Express closed the half year incurring a net loss of $58.97 million compared to a net profit $66.76 million in 2019. For the second quarter, the publicly traded company recorded net loss of $33.79 million relative to net profit of $18.99 million recorded in the 2019 second quarter.

As such, loss per share (LPS) for the second quarter amounted to $0.07, relative to an earnings per share (EPS) of $0.04 booked in 2019, while for the six months the LPS was $0.12 (2019: EPS $0.13). The 12-month trailing LPS amounted to $0.18.

Slight increase in asset position

As at November 30, 2020, total assets totalled $1.10 billion, which is $18.03 million more than the $1.08 billion recorded last year. The increase in total assets was due to increases in ‘property, plant and equipment’ and ‘right of use asset’ which total $873.31 million (2019: $738.96 million) and $7.31 million (2019: nil) respectively.

This was however, offset by a 41 per cent and 30 per cent decrease in ‘cash and bank balances’ and ‘short-term investments’ to $71.43 million (2019: $121.17 million) and $96.71 million (2019: 138.25 million), respectively