Trend to continue next year with SRF and JAT set to contribute heftily
Refrigerated logistics struggles were one drag that Automotive Holdings Group (AHG) overcame to land its expected annual result, the company says.
The logistics and vehicle sales firm’s financial figures growth was generally near or above 10 per cent, with net profit at $73 million, up from $65 million last year.
However, the refrigerated logistics arm’s pre-tax profits fell 3.1 per cent to 28.1 million.
“The Refrigerated Logistics result reflects the impacts of disruption caused by flooding in [New South Wales] and Queensland and droughts in the Riverina, and more than $2 million in one‐off start‐up costs associated with new cold stores in Perth and Adelaide,” managing director Bronte Howson says.
Industry sources suggest profit records will continue falling in the next financial year, with new purchases Scott’s Refrigerated Freightways (SRF) and JAT Refrigerated Road Services, which together cost $110 million to buy, expected to provide roughly $220 million to revenues.
The pair have contributed 373 prime movers, 77 rigids, 780 trailers, 424 rail containers, 17 premises, 154,350 in pallet storage capacity and about 1,500 staff to the group.
The group is confident of the synergies available from the combined operations of Rand, Harris, SRF and JAT and sees its new Erskine Park cold store in Sydney being completed in January or February next year.
“We see continued demand from our clients for our fully integrated service offerings in temperature-controlled transport and storage, allowing us to benefit from the recent acquisitions, continue our investment in facilities and leverage the identified synergies and the resulting significant economies of scale,” Howson says.
While there was no specific comment on heavy commercial vehicle sales figures show unit sales down 3.1 per cent, from 31,853 to 30,887.