One of Knutsford Express buses.
Profit after tax grew 40 percent at Knutsford Express for the year to May 2017 to $170.3 million but pretax profit was up a lower 28 percent to end at $164.4 million from revenues that rose 28.7 percent to $752.4 million.
Operating and administrative cost was up 29.6 percent to $580.6 million over the year ago period.
During the year, $107.6 million was expended on new fixed assets which pushed depreciation up sharply from $37 million in 2016, to $56 million in 2017. The financial statements reflect $49 million deposited to purchase vehicles, Managing Director, Oliver Townsend confirmed that they are adding “ a couple of buses to expand the fleet, some have already arrived with additional ones to come”.
Big expense items that grew sharply during the year are, Salaries up from $168 million to $194 million up 15.7 percent, toll charges rose from $11.4 million to $29 million, Fuel climbed from $64.7 million to $91 million and would be from a combination of higher prices and more bus trips. Parts cost $43 million fro0m $26 in 2016 while Insurance rose from $18.5 million to $27.2 million. Unfortunately, the company continues to present the financial information without breaking separation direct from indirect cost so that investors can determine more accurately the potential profitability.
Knutsford’s balance sheet presents a picture of strength with current assets of $231 million including cash funds of $156 million, up from $88 million in 2016. Shareholders’ equity stands at $483 million. Liabilities stand at $105 million including deferred tax of $12 million.
We will definitely open the transport centre at the Sangster International Airport later this month Townsend informed IC Insider.com. The centre is expected to capture a bigger slice of passengers disembarking from aircrafts as it become more convenient for them.
Subsequent to the year-end an interim dividend of 6.8 cents per share was declared as the final dividend for the year ended May 2017. The payment will be will be on September 15. The payment amounts to $34 million and is up 41.7 percent over the $24 million paid in 2016. The stock last traded on the Junior Market of the Jamaican Stock Exchange at $14.95. IC Insider.com is forecasting earning per share for 2018 at 53 cents, putting the PE for the stock at rich 30 times earnings, at this level the stock is likely to underperform the Junior Market movement for the next twelve months.
