Lindsay sees solid half-year profit rise


Data-driven company expects future gains from IT investment

Lindsay sees solid half-year profit rise
Lindsay has had a good first half of the financial year

 

Trucking and rural supplies company Lindsay has lifted its first-half profits 8.5 per cent on the previous first half to $5.94 million

Revenue was also up, a more modest 4.9 per cent, to $177.1 million, with both arms contributing.

Despite the impact of poor weather conditions in northern Queensland, the transport division recorded 1.5 per cent revenue rise to $121.3 million translating to a 6.5 per cent returns rise to $15.1 million.

Lindsay Fresh Logistics drove the good news, along with growth in Adelaide and south-east Queensland.

"Achieving this result demonstrates the resilience of the Lindsay network and a diverse customer base," the company says.

It notes the transport division "continued to focus on prods design and innovation to reduce costs and create efficiencies, in highly competitive markets",

During the period, Lindsay:

  • consolidated transport, rural and corporate services at a new Acacia Ridge site
  • completed a new transport and rural site at Mareeba to help access and service the Atherton Tablelands
  • launched a new transport management system allowing integrated vehicle monitoring and tracking
  • maintained fleet renewals to gain cost reductions and increase safety and reliability.

"Over the remainder of the year there will be a focus on business intelligence to make data driven decisions, which will support the next phase of cost reductions and improved customer experience," the company says.

A 60 percent rise in property, plant and equipment payments to $12.3 million and a 12 per cent rise in employee benefits to $50.2 million was offset by a 20 per cent reduction in subcontractor costs to $17.3 million and a 16 per cent vehicle operating costs reduction to $22.7 million.

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