Lindsay Australia takes a profit hit on the back of higher charges and borrowing costs, rego fees and tighter margins
By Rob McKay | August 27, 2010
Queensland trucking firm Lindsay Australia recorded a five percent fall in net profits to $3.8 million, the company revealed yesterday.
The dip – blamed on “adverse weather and capacity utilisation” between January and June – came despite a 0.7 percent rise in revenue on a previous year’s performance that had been bolstered by the sale of a distribution business for $247,000.
The tax-driven purchase of additional equipment and a fleet expansion – to the tune of 25 prime movers and 36 B-double trailers – also came into play, resulting in additional depreciation and amortisation charges and higher borrowing costs.
Lindsay has nine more B-doubles on order eligible for the investment allowance.
The company’s 90 percent exposure to food transport and products – the latter through its rural merchandising business – had kept revenue stable for the last two years “notwithstanding increased competitive pressure”, especially in the refrigerated market where margins were under pressure.
“During the year, [Lindsay] Transport actively pursued additional quality revenue and has been successful in obtaining new contracts,” it added.
“Some of these gains have been offset by losses in volume which have occurred as some customers seek lower cost options.”
The year saw the transport arm start full-scale operations in Innisfail, including the opening and subsequent purchase of a depot and the takeover of customers and routes of a rival firm.
In February, Hawkins Road Transport withdrew from general freight, passing contracts and staff to Lindsay.
The company has seen state B-double registration fees for its 130 lead trailers rise by $330,000.
It also highlighted the impact of increasing traffic and distribution centre waiting times in capital cities and noted the resultant rising costs for its terminals in them.
Amongst the directors, Sam Doumany and Tom Lindsay are to retire.