Knutsford Express posts $17-m profit, happy with new leg of Highway 2000

BY STEVEN JACKSON Business reporter jacksons@jamaicaobserver.com

Friday, October 10, 2014    

LUXURY bus company Knutsford Express has voiced approval of the Mount Rosser bypass of Highway 2000 amid posting $17.1 million in profit, or 20 per cent higher than year-earlier levels.

The company also expanded the number of departures on offer while increasing travel options to passengers along the South Coast by 50 per cent.

“The much-anticipated middle phase of the North-South Highway which bypasses the hilly and windy Mount Rosser roadway opened. This has allowed for a reduction in the travel time on the North Coast route and resulted in a more comfortable ride for our passengers,” the company said in a joint note prefacing the financial results

signed by directors Oliver Townsend and Anthony Copeland.

“With this reduction in time and with our fleet being improved by the addition of new luxury coaches on that route, our customers will have an even better travelling experience,” the directors said.

The Caribbean Business Report was unable to contact the company for further clarification on the benefit of the bypass.

Total revenues hit $103 million, or 30 per cent higher than a year earlier based on increased passengers resulting from the company’s expansion of the South Coast route. Cash and equivalents stood at $48.5 million at August compared with $12.8 million a year earlier.

Knutsford Express operates bus routes that connect Jamaica‘s south-eastern city of Kingston to northern and western parishes. It offers scheduled coach transportation, courier service, private hire, and special-event shuttles.

The company raised just under $100 million through an initial public offer (IPO) of 20 million shares or 20 per cent of the firm last December. The listing on the Jamaica Stock Exchange Junior Market allowed the company to qualify for a five-year break on income tax.

The company now has 105 departures weekly and has expanded its reach to Falmouth, Negril, Savanna-la-Mar, and Mandeville, having acquired competitor South Coast Express last year.

It started operations in 2006 with 28 departures weekly between Montego Bay and Kingston.

Earlier this month, the State body, the National Road Operating and Construction Company (NROCC), admitted that use of the recently opened Mount Rosser bypass dipped by more than a third since it started collecting a toll last month.

During the period prior to the toll collection, the road attracted approximately 5,000 to 6,000 vehicles per day, as motorists took advantage of the moratorium implemented to encourage use of the new road. But the numbers fell to 3,000 to 4,000 vehicles per day with the introduction of toll charges.

Toll rates implemented were $200 for Class 1 vehicles (cars), $420 for Class 2 vehicles (SUVs) and $1,000 for trucks.

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Knutsford Express posts $17-m profit, happy with new leg of Highway 2000

Big jump in profit for Knutsford Express

Despite the addition of  new routes and rising gas prices, the bus company, Knutsford Express, managed to contain fuel costs at 19.5% of revenue during its 2013/2014 financial year.    
The company, in its just released annual report, said revenues grew by 59% to $323 million.    
Net profit grew by 43%, from $35 million to $50 million.

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Big jump in profit for Knutsford Express

Big jump in profit for Knutsford Express

Despite the addition of  new routes and rising gas prices, the bus company, Knutsford Express, managed to contain fuel costs at 19.5% of revenue during its 2013/2014 financial year.    
The company, in its just released annual report, said revenues grew by 59% to $323 million.    
Net profit grew by 43%, from $35 million to $50 million.

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Big jump in profit for Knutsford Express

Alcoa records 2nd quarter profit of US$138M

U.S. aluminium firm, Alcoa, which is pulling out of Jamaica after 55 years, has reported a second-quarter profit of US$138 million. The profit reverses a loss from a year ago.
Alcoa said the positive result was due to strong performance in its engineered-products business, which makes parts for industrial customers.   
Alcoa has struggled in recent years as low aluminium prices hit its bottom line.  
The company which owns a 55 per cent stake in Clarendon based alumina refinery, Jamalco, is selling its shares to Noble Resources UK, but will continue to manage the refinery for a further two years.

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Alcoa records 2nd quarter profit of US$138M

Alcoa records 2nd quarter profit of US$138M

U.S. aluminium firm, Alcoa, which is pulling out of Jamaica after 55 years, has reported a second-quarter profit of US$138 million. The profit reverses a loss from a year ago.
Alcoa said the positive result was due to strong performance in its engineered-products business, which makes parts for industrial customers.   
Alcoa has struggled in recent years as low aluminium prices hit its bottom line.  
The company which owns a 55 per cent stake in Clarendon based alumina refinery, Jamalco, is selling its shares to Noble Resources UK, but will continue to manage the refinery for a further two years.

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Alcoa records 2nd quarter profit of US$138M

Revenue and profit decline at Pulse

There was a decline in revenue and profit at Pulse Investments during the January to March quarter.
The company’s revenue totalled $52.7 million, down from $67.6 million last year.   
Profit amounted to $42 million versus $46.4 million during the March quarter in 2013.

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Revenue and profit decline at Pulse

Revenue and profit decline at Pulse

There was a decline in revenue and profit at Pulse Investments during the January to March quarter.
The company’s revenue totalled $52.7 million, down from $67.6 million last year.   
Profit amounted to $42 million versus $46.4 million during the March quarter in 2013.

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Revenue and profit decline at Pulse

Pan Jam 2Q profit up

PAN Jamaican Investment Trust (Pan Jam) reported second quarter net profit of $486 million, a four per cent rise driven by an increased stake in its associate company, Sagicor Life Jamaica.

The Jamaican conglomerate also complained about what it said were three years of government delays in granting approval for its Marriott Courtyard Hotel project in Kingston.“The most notable impact on our performance for the quarter was an increase in our share of results of associated and joint venture companies of $227 million, driven largely by our increased Sagicor shareholding,” prefaced the June 30, 2013 ended second-quarter financials jointly signed by chairman Stephen Facey and director Paul Facey.Pan Jam, during the 2012 third quarter, increased its shareholding in insurance giant Sagicor Life Jamaica from one-quarter to one-third. Its results from associated companies consist principally of its 32.8 per cent investment in Sagicor; minority positions in New Castle Co Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Mavis Bank Coffee Factory Limited, Hardware & Lumber Limited, Caribe Hospitality Limited (developers of the planned New Kingston Marriott Courtyard hotel) and Chukka Caribbean Adventures, stated the directors in the preface.Pan Jam’s core property segment enjoyed overall occupancy levels exceeding 95 per cent for the second quarter, a slight decline from last year, while contribution to group operating profit of $158 million for the quarter ($342 million year-to-date) was $42 million ($16 million year-to-date) lower, attributable to reduced property revaluation gains, stated the financials.Net profit attributable to owners for the six months ended June totalled $710-million, dipping 27 per cent over year-earlier levels due to reduced profits from Sagicor, affected by lower tenure instruments arising from the National Debt Exchange (NDX).“Our results for the first quarter were significantly affected by the full participation by Sagicor and its subsidiary, Sagicor Investments Jamaica Limited, in the NDX in February 2013. Sagicor recorded a realised loss on the exchange of bonds tendered in the NDX of $1.1 billion,” stated the financials.Pan Jam last month broke ground on the US$22-million ($2.2-billion) Marriott hotel in New Kingston. But the group still holds a small amount of debt with assets totaling $22.1 billion with $16.6 billion in stockholder equity. The 130-room hotel is scheduled for completion in 2015 and aims to employ 430 Jamaicans.The directors in the preface of the financials urged stakeholders to remove delays for future projects.“As we plan additional investments in a variety of sectors here and overseas, we are mindful of the length of time – three years – that it has taken to gain approval for this project (Marriott Courtyard). Investors must believe that it is easy to do business in Jamaica, or they will take their capital elsewhere. We urge that our message of change in this area is heeded, otherwise additional investment in projects in the country will be that much more difficult to attract. If we are serious about development in our country we need to bring further levels of transparency and timeliness to the approval of projects, while at the same time ensuring that all laws are complied with and environmental requirements are met,” indicated the financial preface.Pan-Jamaican Investment Trust Chairman Stephen Facey (second left) shakes hands with Minister of Tourism and Entertainment Wykeham McNeill (right) after breaking ground for the Courtyard by Marriott in New Kingston last month. Sharing in the occasion are Opposition Leader Andrew Holness (left) and Opposition spokesman on tourism Ed Bartlett.

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Pan Jam 2Q profit up

Purity"s profit past $10 million

CONSUMERS bought more Purity, Miss Birdie and Hearty Goodness baked goods in the June quarter, which translated to a 474 per cent year-on-year rise in profit to $10.6 million for brand owners, Consolidated Bakeries .

Revenues, which hit $156 million in the quarter, were up 40 per cent year over year, due to windfalls from increased marketing.“These increases represent real growth in volumes across our key items and primarily a result of activities in distribution and market programmes,” indicated Anthony Chang managing director in notes accompanying the second-quarter financials released this week.The rise in its marketing spend, although undisclosed, resulted in a marginal rise in its operating expenses-to-sales ratio at 29.7 per cent for the half year versus 29.6 per cent for same period last year.“Given the uncertain economic situation and desire to have tactical flexibility, maintaining a good liquid position is important. During this quarter focus was placed on in-store marketing programmes. These programmes gained additional retail presence helping same store sales results,” added Chang.Chang also indicated that the Miss Birdie brand gained increased online visibility.“We created additional social media presence for Miss Birdie brand, which has been well-received. Our active presence on social media has assisted our brand growth and reach,” he stated.The company noted that it benefited from increased efficiencies with gross margin percentage increasing to 36.1 per cent compared to 34.2 per cent for the same period last year.The bakery’s managing director also noted that the company’s working capital position improved in this period to $122.9 million, which was 349 per cent higher than year-earlier levels.Chang also hinted at prospects for increased overseas sales. The company already exports to the Jamaican Diaspora, but overseas sales still account a small fraction of total sales.“Our trade team conduct[ed] trade visits in North America which resulted in potential trade opportunities,” wrote Chang.The Kingston-based bakery raised some $100 million and listed on the Jamaica Stock Exchange Junior Market in December 2012. The proceeds of the IPO improved its working capital and operational processes.The company was incorporated in 1957 following the consolidation of three existing bakeries: Valentine Bakery, owned by the Chang family; Powell’s Bakery, owned by the Powell family; and Huntington Bakery, owned by the Seivright family.In 1972, the Chang family members acquired the shares of the Powell and Seivright families and since then, have owned and operated the company.

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Purity"s profit past $10 million