Hurricane Melissa brakes profit trend at Knutsford Express

Knutsford Express Services posted a quarterly loss after Hurricane Melissa forced the Jamaican transport company to shut routes for up to “two weeks”, cutting revenue and erasing profits from a year earlier.

The Kingston-based bus and courier operator reported a net loss of $3.6 million for the three months ended November 30, compared with a profit of $53 million in the same period last year. Quarterly revenue fell 17.4 per cent to $413 million from $500 million.

“This quarter was marked by unprecedented challenges following Hurricane Melissa, the most devastating storm to hit Jamaica in recent history,” the board said in its report to shareholders. “The storm’s impact rippled through our operations throughout the period, with several routes and depots severely affected.”

Knutsford shares trade on the Jamaica Junior Stock Exchange. The company operates bus routes connecting major Jamaican cities and provides courier services across the island.

Hurricane Melissa struck Jamaica in late October, forcing Knutsford to suspend operations on multiple routes. Some remained inoperable for half a fortnight, creating what the company called “significant disruptions to our service delivery and financial performance”.

Despite the quarterly setback, Knutsford’s six-month results showed relative resilience. Revenue for the period declined a more modest 3.5 per cent to $1.01 billion from $1.05 billion a year earlier. The company maintained profitability for the half, posting earnings per share of $0.13 cents compared to $0.24 a year earlier.

The company said it played a role in Jamaica’s post-hurricane recovery. “Our available capacity enabled us to respond swiftly and effectively to the public’s heightened needs during this critical period,” management said, noting the company scaled operations to meet surging demand for passenger travel and courier services while providing complimentary transport for relief efforts.

” The challenges of this quarter, while significant, have reinforced our operational capabilities and our essential role in Jamaica’s transportation infrastructure,” it stated.

Knutsford continued investing through the disruption, expanding its coach fleet to improve operational efficiency. Total assets rose 13.3 per cent to $2.38 billion as of November compared with $2.1 billion a year earlier.

business@gleanerjm.com