First half profits rise as investment sees costs fall
Proof that there are still many speeds in the national economy can be found in Lindsay Australia’s half-year results.
The Queensland-headquartered haulage and rural supplies firm saw net profits soar 22.6 per cent compared with the previous first half to $5.47 million on a near-five per cent rise in revenues to $169 million.
This came despite almost a trebling of plant and equipment leases, to $31 million compared with $12.4 million in the earlier period.
The profits floated on revenue growth across all division, increased fleet utilisation, reduced costs from fleet renewal and continued development of Lindsay Fresh Logistics service lines.
The transport arm saw revenues up 4.6 per cent from $114 million to $119 million, including a $5.67 million fuel levy fall, with gross profits up 17 per cent from $12 million to $14 million.
“Reduction in the fleet’s average age has improved the division’s profitability and safety outcomes,” director John Pressler says.
“New vehicles have fewer major breakdowns, lower servicing costs, and improve fuel consumption.
“During the period, investment continued in Transport supporting systems including in-vehicle telematics and a new maintenance system.
“the Transport division is planning to implement a new logistics system in the second half of the 2016 calendar year.
“The aim of these investments is to improve the customer experience, resource utilisation, and safety.
“Lindsay Fresh Logistics continues to develop its export service line and increase utilisation of the facility’s capacity.
“To date, the facility is providing efficiency gains to the overall Transport divisions through its location, docking, and storage capability.”
These efficiencies were driven in part by the firm’s Rural division, which saw revenues gain a record $52 million.
“Sales of rural products into regional areas increases the Transport division’s fleet utilisation and underpins the strategy of combining a rural and transportation company,” Pressler says.
Subcontractor expenses were up $1.2 million to $19 million as was pallet expenses, from $899,000 to $1.08 million.
Against that, fuel costs fell from $21.4 million to $17.3 million, insurance was nearly half at $599,000 from $1.17 million, repairs and maintenance was down about $200,000 to $6.6 million and operating lease rentals slipped $300,000 to $3.3 million.