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K&S (ASX:KSC) reviews 2020 financial year performance
  • Logistics company K&S (KSC) has provided earnings guidance for the financial year ending June 30, 2020
  • The company expects $11.7 million to $12.7 million in statutory profit, and $15.8 million to $16.8 million in underlying profit
  • Revenues during the period significantly declined due to COVID-19 impacts and business restructuring, although underlying results benefitted from cost-saving measures
  • The company’s results for the year also included $12.4 million in JobKeeper subsidies on a before-tax basis
  • K&S shares have risen 3.85 per cent in early trade, priced at $1.22 each

Logistics company, K&S (KSC) has provided earnings guidance for the financial year which recently ended June 30, 2020.

The company currently expects its reported statutory net profit before tax for the year ending June 30 to land between $11.7 million and $12.7 million. This estimate, which is based on unaudited management accounts, is considerably higher than the $3.2 million statutory result from the prior comparative period.

K&S also anticipates that its underlying profit before tax for the year ending June 30 will be between $15.8 million and $16.8 million. Much like the statutory net profit, this estimate is also based on unaudited management accounts. The amount also compares to an underlying result of $3.2 million from the year which ended on June 30, 2019.

K&S' statutory results for the financial year period also include $12.4 million in JobKeeper subsidies on a before-tax basis.

During the financial year, the company’s revenues declined substantially, due to the impacts of the COVID-19 pandemic. The dip was also attributed to a restructuring of the business.

However, K&S’ underlying performance gained some benefits from an ongoing focus on improving revenue quality and contribution. An exit from underperforming operations, and the use of cost-saving measures and procurement initiatives also provided some relief.

The company’s cost-saving measures and procurement initiatives will continue to provide ongoing upside in the 2021 financial year.

The company plans to release its statutory results for the year ending June 30 on August 28, 2020.

K&S shares have risen 3.85 per cent in early trade, priced at $1.22 each at 10:46 am AEST.


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