Global Recovery in Travel Boost Knutsford Express Bottom-Line 

• Knutsford Express Services Limited reported a turnaround in its bottom-line recording a net profit of $77.83Mn for its financial year ended May 31, 2022, which is a vast improvement from the net loss of $95.98Mn in the prior period last year.
• Travel recovery and removal of mobility restrictions were the main contributing factors to the company’s profitability. Its revenues increased by 76.9% or $484.20Mn, which outpaced the 40.8% or $279.81Mn increase in Administrative and General expenses.
• Prospects for earnings growth for KEX are also favourable. KEX is expected to see a strong first quarter for its FY2022/2023 as Jamaica would have seen a record amount of tourist stopover arrivals which is a key revenue driver for the company. This trend is expected to continue throughout the remainder of 2022 into 2023 and is anticipated to support KEX’s growth. However, we do note that high fuel cost represents a downside risk to KEX’s performance.
• KEX’s stock price has decreased by 15.9% since the start of the calendar year. The stock closed Wednesday’s trading session at $7.00 and currently trades at a P/E of 31.8x which is above the Junior Market Other Average of 20.3x.

(Sources: JSE and NCBCM Research)