Higher Admin Expenses Hit KEX’s Bottom Line

• For the first half of its financial year ending November 30, 2019, Knutsford Express (KEX) reported net profit of $79.08Mn, which represents a 36.2% contraction when compared to $124.00Mn earned during the same period one year prior.
• The outturn was due to a 24.8% (or $104.44Mn) increase in administrative and general expenses that outpaced the 9.4% (or $52.08Mn) growth in revenue.
• Management attributed the increase in expenses for the second quarter to its new advertising campaign, additional staffing and toll costs associated with new routes.
• The stock has declined by 5.5% since the beginning of the year and currently trades at a P/E of 40.0x earnings which is above the Junior Market average of 24.8x earnings.

(Source: KEX Financials)