Chalmers see profits bounce but revenues dip


Company expects turnaround in Queensland fortunes to continue

Chalmers see profits bounce but revenues dip
Chalmers has put a bad year behind it

 

Container transport and services firm Chalmers has had a welcome profit lift of 134 per cent, though revenues slid a little, down 4 per cent to $58.5 million.

The good cheer follows a dark period last year, when it recorded a loss of $739,000.

Helping was a reduction in outgoings on almost every material line including vehicles and equipment, down from $8.54 million to $7.79 million, subcontractors, from $4.65 million to $4.40 million, and employment costs, from $25.58 million to $24.1 million.

The company was also aided by renegotiations of certain property leases it has long held concerns about that netted $450,000 in exchange for surrendering a lease option.

Reducing cartage and labour costs gained it $200,000 and $600,000 respectively and the company expects this focus to help this coming year "as the business contends with strong price pressures in a very competitive market".

Significantly higher gate moves due to several new clients boosted Brisbane Container Park but other Queensland operations struggled under difficult conditions for beef and timber customers, though the drought breaking is expected to help down the track.

Warehousing suffered a similar malaise but excess capacity has since been filled.

Most promising has been the return to form of its Brisbane Tank Wash & Storage operation, which moved into the black.

"Strong gains have been made in securing clients for Tanktainer storage and repairs and management attention is being directed towards growing the tanker wash side of the business," Chalmers says.

Melbourne transport and logistics operations lifted revenue slightly against strong price competition.

"A disappointing grain season also adversely affected the transport business," the company says.

Meanwhile the incremental increase in shareholding of Lindsay Fox’s investment vehicle, Alljet Investments, has continued, with a $731,755 purchase in July lifting its holding from 17 per cent of the company to 19.9 per cent.

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