Thursday 24 January, 2019

Knutsford Express acquiring Florida bus company

Knutsford Express said it successfully raised $150 million via a private bond to fund expansion plans locally and overseas including the acquisition of a small bus charter company in Florida.

Knutsford Express said it successfully raised $150 million via a private bond to fund expansion plans locally and overseas including the acquisition of a small bus charter company in Florida.

Knutsford Express, which operates a bus company that travels between major cities and towns locally, said that it will acquire a charter bus company in Florida financed from the proceeds of a $150 million note.

Director of the company, Oliver Townsend said the acquisition is in line with the company’s growth strategy.

“We have been open to opportunities. Our company has been growing steadily. Not only are we aiming to continue the growth, but one of our strategic plans is to have as much as a quarter of our revenues (overtime) from diversified sources,” Townsend said.

In a notice to the Jamaica Stock Exchange on Monday, Knutsford Express said it successfully raised $150 million via a private bond to fund expansion plans locally and overseas including the acquisition of a small bus charter company in Florida.

Townsend, however, did not divulge further details when contacted by Loop News.

“A lot more will be coming,” Townsend said.

Knutsford passenger numbers and its profit are growing when compared with a year ago, but investors are punishing the stock lower. The stock price dropped more than 20 per cent over 365 days from $15 to $12.17.

The last time it hit $15 was in late February and it has dropped ever since.

The company’s earnings per share totalled $0.36 in 2018 and $0.34 in 2017, once normalised for comparative purposes.  

Knutsford listed in January 2014 at $5.11 per share but increased more than 12-fold over three years as it climbed over $67 in May 2017 in the run-up to its stock split in June of that year.

 

 

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