Knutsford enjoying the good times – now Buy Rated

A strong 88 percent jump in fourth quarter revenues, spawned 55 percent increase in pretax profit of $22.9 million, up from $14.8 million in 2013, at Knutsford Express.
For the 12 months to May, pretax profit climbed marginally to $56. Earnings per share which ended at 50 cents for the full year, is up to 23 cents for the last quarter. The latter is what investors would be really interested in, as it gives a good indication, of a rise in profit for the 2015 year.
Management in commenting on the data, indicated in their report accompanying the results, that ridership on the south coast of the island is growing and “signals readiness for enhancement to our schedules on this side of the island.”
Revenues for the quarter, climbed a strong 89 percent, to $96 million from $51 million in 2013, and from $203 million in 2013, to $323 million in 2014.
The result for 2014 is an improvement over the February 2014 quarter, when they reported $90.6 million in revenues and profit of $9.9 million before taxation and is a reflection of continuing growth in business. With the latest figures and signs of continued growth in revenues, earnings for the 2015 year should be around $1 per shares which would place the stock at an interesting valuation with some growth potential, in the stock price to somewhere in the $8-10 range over the next nine months or so compare to $5.16 it last traded. The stock is not in abundant supply and has only traded on a total of seven days, since listing in January this year.
The company’s finances are in a healthy state, with little debt, equity of $159 million and cash of $54 million.