KNUTSFORD Express is looking to rental income and additional business services to broaden its earnings as it prepares to open a Morant Bay depot this month and complete its Mandeville commercial development by year end, following a sharp fall in annual profit.

Chief Executive Officer Oliver Townsend said passenger and courier demand rebounded strongly since the company fully restored its network in April after Hurricane Melissa. The developments are intended to build on that recovery while creating more opportunities to earn from the company’s physical locations.

“Ultimately, our depots in time are meant to be attractive business destinations for our customers,” Townsend told the Jamaica Observer.

“By evolving our physical spaces, we are creating robust additional revenue contributors from locations that attract more visits from customers, additional services, and broader community engagement, ensuring our investments drive sustainable growth well beyond standard ticket sales and freight fees.”

The Morant Bay depot, which Townsend said the company is aiming to open by the end of October, will extend Knutsford Express’ coverage across the entire island.

“The upcoming opening of our Morant Bay depot is a historic milestone that finally gives us 14-parish coverage, allowing us to capture untapped logistics and passenger markets in the east while better connecting the entire island,” he said.

The new depot will be located in the $6-billion Morant Bay Urban Centre, where government offices and private businesses are gradually establishing operations. Seven public entities, including Tax Administration Jamaica, the Passport, Immigration and Citizenship Agency and the St Thomas Municipal Corporation, signed leases in March.

It’s expected that as these offices and businesses open, their employees and customers could provide additional demand for Knutsford’s passenger and courier services.

But Knutsford’s potential customer base extends beyond the centre, with investment in the Southern Coastal Highway improving connections between St Thomas, Kingston and the wider eastern region, creating further opportunities for passenger travel and deliveries.

The expansion comes after a financial year in which disruption to the transport network weighed on sales, while costs put further pressure on earnings.

For the year ended May 31, 2026, group revenue fell 4.5 per cent to $1.98 billion from $2.07 billion a year earlier. Net profit declined much more sharply, dropping 47.4 per cent to $124.6 million from $237 million.

The annual report attributed the revenue decline primarily to road damage and prolonged temporary suspensions on affected routes following Melissa. Profit also came under pressure from fixed operating costs maintained during the closures, higher employee costs and increased fuel costs. Knutsford Express’ net profit margin narrowed to 6.3 per cent from 11.5 per cent.

On Tuesday, Townsend said demand had since strengthened, although he did not provide passenger or courier volumes to quantify the recovery.

“Following the full restoration of our network in April, we have seen a robust rebound in both passenger and courier demand, providing a strong operational foundation for our current expansion phase,” he told the Business Observer.

Meanwhile in Mandeville, the company is targeting completion of its MVL Centreplace commercial development by the end of December. The project will add rental income to the group’s earnings, building on its existing activities outside transportation, which include the Drax Hall Business Centre and Drax Hall Café.

“We expect that rental income, other business services and synergistic benefits will begin contributing to revenue growth in the near term,” Townsend said.

He did not disclose how much space had been leased, the expected annual rental income or when the development would begin contributing to profit.

The company has continued investing despite the earnings decline. Total liabilities rose to $899.1 million from $693.7 million, with the annual report linking the increase to growth projects and restoration of operations after the hurricane, financed through debt and internally generated funds.