Stevenson sees improvements on both sides of the country, though linehaul remains in the doldrums
November 13, 2012
K&S Corporation has issued a bullish trading update to the Australian Securities Exchange.
The transport and logistics firm advises that the improved trading performance in the second half of last financial year has carried forward into the first half of the current year.
This had led K&S to expect net profit after tax for the first half of 2012-13 to be about 25-30 percent up on the prior corresponding period.
It says the anticipated stronger first-half result is based on the continuing solid performance of Regal Transport in Western Australia and improved performance from the eastern states businesses.
“Regal Transport continues to make an important contribution to K&S Corporation’s overall result,” K&S Corporation Managing Director Greg Stevenson says.
“Improved performance from our traditional eastern states businesses has also been maintained in the first half of the 2012-13 financial year, although challenges remain in our rail and road linehaul business due to depressed volumes.
“The recently completed acquisition of Bunbury-based Collare Transport also offers improved earnings for K&S from a comparatively modest outlay and further demonstrates K&S’s ability to identify quality assets that add value to our business.”
K&S has taken a conservative line on precise financial forecasts recently.
That could change, with the firm saying that it anticipates having “more visibility” on trading conditions in the second half by late February.