Growing operator Lindsay still on acquisition hunt


Lindsay Australia flags further growth, and more acquisitions, despite economic turmoil

By Michael House | November 18, 2009

Queensland logistics operator Lindsay Australia has flagged further growth, and more acquisitions, despite the tough economic climate.

Speaking at the company’s annual general meeting in Brisbane this morning, Lindsay Chairman John Pressler says the company will also look to make further acquisitions as situations arise throughout the year.

Pressler also says that the company’s recent packaging deal that it penned with Amcor earlier in the year has meant this side of the business is very much a priority for the company.

"Rural remains well positioned to grow and additional outlets can be added without any significant cost," Pressler says.

"We are seeking to make further acquisitions as opportunities arise. The establishment of a centralised distribution centre at the group head office is also providing further opportunities to both increase sales and reduce costs.

"We are particularly excited about the future opportunities in packaging arising from the mew agreement with Amcor. Increasing packaging sales is a priority for rural."

Pressler says that despite concerns over fuel price increases, which can mainly be put down to a strong Australian dollar, Lindsays expects to declare a sizeable pre-tax profit at the end of the next half of the financial year.

"Subject to the proviso of achieving our forecasts in the current economic environment we expect that this improvement for the fourth months will result in an improved first half result," he says.

"At present we expect a pre-tax profit in the range of $4 million to 4.25 million for the half year."

Pressler says that after tax this is likely to fall to about $4.25 million, which is up from the $2.4 million achieved last year.

Lindsay’s newly established full-scale North Queensland operations are expected to contribute to this success after it was announced today that there has been "considerable" success in obtaining new customers.

In a boost for company employees Lindsay also announced plans to make a total profit share distribution scheme of $217,000 available to eligible workers - 20 percent of the amount by which pre-tax profit exceeded the pre-tax profit target.

According to Pressler the ability for company employees to participate in the financial results of the group provides them with an incentive to achieve increased profits for shareholders.



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