Knutsford Express banking on Drax Hall investment to curtail consolidated losses of $60.64 millionSunday, April 18, 2021
BY DURRANT PATE
Luxury coach and courier service company Knutsford Express is banking on its Drax Hall Business Centre Development in St Ann to curtail its consolidated losses, which has escalated to $60.64 million for the last three quarters.
Losses before taxation for the nine months ended February 2021 amounted to $60.64 million, reversing the pre-tax profit of $113.26 million reported during the same period in 2020. No taxes were incurred year to date compared to $10.08 million in the same period last year.
Net losses for the February 2021 quarter closed at $1.66 million relative to a net profit of $36.42 million booked for the corresponding period in 2020.
Total comprehensive losses amounted to $55.48 million for the nine-month period, while for the February quarter total comprehensive loss closed at $1.06 million, coming from an income of $37.73 million in 2020.
The company's management is hoping that the Drax Hall Business Centre development will be able to cauterise these losses, which have come about because of the adverse effect of the pandemic on the public transport and courier company. The management is adamant that in spite of the negative effects of the novel coronavirus pandemic there is still light at the end of the tunnel.
According to the management, “New business initiatives such as the investment in our Drax Hall Business Centre development has resulted in the completion of phase 1 and all shops fully tenanted. Demand for the shops and the response to phase 2, which is due for completion in the first quarter of our new financial year (July 2021), is also very encouraging and signals positive contributions to our company in the ensuing 2021/22.”
Total revenues for the last three quarters managed to reach $456.37 million, which represented a 51 per cent decrease when compared with the $925.23 million reported for the same period in 2020. For the third quarter, revenues amounted to $185.05 million, a 42 per cent decrease relative to the $318.04 million booked for the corresponding period in 2020.
The sharp decline in revenues has been blamed on the pandemic, which has hit the company's financial performance and its revenues heavily. The company, which is publicly traded on the Jamaica Stock Exchange reports that “the ongoing COVID-19 pandemic which continues to affect passenger travel negatively as a consequence of the continuation of government implemented curfews” was mostly responsible for the sharp decline in revenues.
The company stated, “We, however, have responded by increasing our courier service which have become very popular with individuals and companies alike. During this quarter we opened another courier outlet at Sovereign Centre on Washington Boulevard in Kingston.”
Administrative and general expenses for the three quarters fell by 35 per cent to total $514.56 million coming from $797.46 million in 2020. Consequently, gross loss for the period amounted to $58.19 million versus a gross profit of $127.77 million reported for the same period a year ago.
MORE ON KNUTSFORD EXPRESS FINANCIALS
For the February quarter, gross loss closed at $2.24 million, relative to a gross profit of $46.53 million booked in 2020. Other income for the period amounted to $706,601.
In addition, finance income rose to $8.29 million from $5.18 million in 2020. Finance costs, year to date, fell by 42 per cent, to total $11.44 million for the period, down from $19.70 million recorded for 2020.
Loss per share for the nine months amounted to $0.12, relative to an earnings per share of $0.21 reported for the corresponding period in 2020. As at February 28, 2021, the value of total assets was $1.11 billion, $65.11 million less than the $1.18 billion recorded last year.
The decrease in total assets was largely due to a decrease in “other assets”, which declined by $76.45 million or 74 per cent to total $26.39 million, while “Cash and Banks Balances” and “Short-term investments” also declined to $37.98 million and $100.90 million respectively.
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