Things do not seem to be going well at logistics company Express Kenya Limited. Trouble started at the firm when the firm lost its single largest and most lucrative beer transportation business after regional brewing giant EABL awarded the Ksh. 2.3 billion-a-year contract to its rival DHL. Its notable remaining clients are Toyota Kenya for whom it transports and clears imported vehicles, Central Bank for whom it transport unfinished currency notes and Karuturi flowers.
Recently, in a memo dated 28th March, the director Hector Diniz informed workers that the company’s fleet of trailers, warehouses and workshop had been leased out to SDV Transami for an unspecified period beginning April. SDV Transami is also a logistics firm and a worthy competitor of Express. The workers were therefore required to take a two-week leave pending re-organisation of the company businesses – a position the employees view as a way to lay them off considering some of them had been asked to resign their positions and re-apply for possible redeployment.
Last year, the company reported a loss of Ksh. 54.987 million for the period ended 30th June 2011.
Express Kenya Limited is a listed company, with 35,403,790 shares trading on the NSE. Its 52 week range is between Ksh. 3.50 and Ksh. 6.40 per share. The share has fallen consistently from a high of Ksh. 10 per share in October 2010 to an all time low of Ksh 3.50 per share in January 2012 and currently trades at Ksh. 4.40 per share.