Reduced tourist ridership cuts into Q2 profit for Knutsford Express

 



Despite contributions from rental income at its multiplex Drax Hall Business Centre and its café operations, net profit for Knutsford Express Services (KES) Limited Q2 ended November 2024 declined by 26.1 per cent to $53 million, compared to $71.7 million in the prior year.

Directors explained that a reduction in tourist passenger ridership and operating expenses associated with refurbishing the company’s depots affected net earnings for the quarter under review.

Meanwhile, they are hoping for a winter rebound. “Looking ahead, we anticipate a rebound in travel demand as headwinds from the recent U.S. election cycle and associated travel advisories subside,” they said in the second quarter report.

Revenue for the period increased by 5.7 per cent to $500 million, compared to $473 million in the corresponding quarter last year.

Local ridership has been resilient. Revenue growth was driven by increased passenger volumes across all routes.

For the six-month period, revenue rose 8.8 per cent to $1,050 million, up from $965 million in the comparative period. Earnings per share for the six-month period ended November 30, 2024, stood at $0.24.

The company indicates continued investments in its coach fleet has facilitated growing customer demand.

Meanwhile the company’s courier service “remains a strong contributor, providing dependable package delivery seven days a week,” management said, adding, “We are actively focused on expanding into convenient courier locations and improving service processes to better serve our customers.”

Total company assets grew 12.5 per cent to $2,062 million as of November 30, 2024, up from $1,833 million a year earlier, reflecting ongoing investments in expanding the coach fleet and other operational resources.

Investments in capacity expansion, customer convenience, and operational efficiency are expected to drive sustainable growth, directors concluded.

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