K&S looks to merger gains in tough market


Other listed firms release market updates and information, including Chalmers and Lindsay

K&S looks to merger gains in tough market
K&S is awaiting synergy gains to flow through

 

Amongst listed transport and logistics firms, Toll may have had the big news this month but market updates and developments have been flagged by other companies, with K&S Corporation just the latest.

His firm may be digesting Scott Corporation but new K&S CEO Paul Sarant has to contend with soft business conditions that continue to plague the company as it awaits the benefits.

K&S swallowed Scott Corp in March and still expects synergies of more than $3 million annually from the off-market move due to office and property integration plus lower purchase costs.

But it notes that weak trading conditions have persisted full year profits are expected to fall from last year’s $15.9 million to about $10.1 million, with $1.04 million of that fall due to merger costs.

With eastern state businesses in the doldrums and Western Australia off the boil, Sarant points to good news in the buoyant New Zealand market.

"K&S is extremely focused on improving its underlying earnings," he states.

"I look forward to the opportunity to continue to build on K&S’ reputation for providing innovative service offerings, as well as maintaining strong cost disciplines within the business.

"With the new contracts for NZ Steel, Miraka and Sequal Lumber in New Zealand now bedding down, we expect to see an improved contribution from our New Zealand division."

Meanwhile, haulage and port services firm Chalmers is growing its Brisbane port footprint and container-services offering with the $2.1 million takeover of Transpacific’s tanktainer operation.

The facility is adjacent to its Brisbane Container Park and Transpacific had used it for tanktainer handling, storage and repairs along with road-tanker washing.

It will also host maintenance operations for Chalmers Transport and container park vehicles.

Chalmers intends to grow this business come the completion date of June 10.

Decommissioning of the cooking oil recycling operation that had already been closed down at the site will be completed after that date.

"This business is similar to that already undertaken in its empty container park," the company says.

"It will provide specialist services to shipping, leasing, manufacturing and distribution entities involved in the shipping of bulk liquids."

And transport and rural supplies company Lindsay Australia says it is pursuing Queensland law firm BCI Lawyers in the State’s Supreme Court.

"The proceedings relate to BCI Lawyers’ involvement in certain security arrangements which [Lindsay subsidiaries] Transport and Rural sought over the assets and undertakings of a major customer and its associated entities and related persons," the company says.

"The proceeding alleges negligence and breach of contract", with the alleged harm estimated at $2.6 million plus interest and costs.

 

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