Listed logistics company Express Kenya Plc has reported another year of financial distress, with its net losses deepening to KSh 107.9 million in 2024 from KSh 103.4 million in 2023.
- •The logistics company saw its revenues decline by 4% to KES 26.4 million, driven by a reduction in clientele and rented storage space.
- •Direct costs, which rose by KSh 6.7 million last year, and finance costs resulting in even lower margins and the spike in losses.
- •Express Kenya’s total assets fell slightly to KSh 1.2 billion, accumulated losses rose to KSh 606.5 million, and shareholders equity dropped to KSh 412 million from KSh 520 million in 2023.
“The Board and Management have continued to focus on enhancing the company’s financial performance through improving operational efficiency, growing income, reducing losses and managing costs. The principal shareholder has continued to provide financial support to the group throughout the years,” the company said in its outlook.
The company’s cash dropped to KSh 608,000 from KSh 1.2 million the previous year, signaling rising liquidity risks. The company’s board acknowledged delays in launching a key project meant to replace lost warehouse revenue.
Express Kenya contemplated delisting from the Nairobi Securities Exchange (NSE) in 2020 after a string of yearly losses. The logistics company’s financial quagmire began after the listed regional brewer, EABL, terminated its distribution contract. In 2020, it also contemplated diversifying its revenue streams by venturing into real estate, and discontinuing its primary business.
The fall in shareholder value over the years prompted the Capital Markets Authority (CMA) to suspend trading in the company’s shares in 2017.
