Toxfree first half sees good and bad news


One-off items to blame as revenues increase around 20 per cent

Toxfree first half sees good and bad news
Toxfree should be over its one-off costs this half.

 

Tox Free Solutions (Toxfree) has seen its first half profits halve compared with the same period last financial year, due to one-off items, but also a significant jump in revenues.

The fleet-owning waste and recycling firm recorded a net profit down 54 per cent to $5.9 million, with much of the decline related to costs involve in buying Worth Recycling and Daniels Health Australia.

Revenues to $237.8 million, however, rose 20 per cent on the previous first half and 22 per cent on the previous half.

"To put [this first half] result into perspective, in the prior comparable period, the resource sector construction activities in WA and Qld (including activities related to upstream oil and gas drilling) generated $8.8M of EBITDA more than in this period," Toxfree reports.  

"The decline in earnings from this sector this half was partly offset by solid organic growth in services to infrastructure, commercial and industrial markets on the east coast and the addition of Worth and more recently Daniels."

The volumes of waste and earnings from the resource sector continued to decline in the period as construction projects in Western Australia and Queensland transition from construction to production.

"Over the next six months we expect earnings from the resource sector to reach a stable level," the company says.

"Further opportunities arise as the various LNG plants in North West Australia commence production and services to new clients such as Inpex and GLNG commence."

Property, plant and equipment (PPE) costs rose 25 per cent to $190 million on the previous first half, while the acquisitions meant employee benefits rose 59 per cent to $14.35 million.

PPE seals proceeds left from $807,000 to $15.81 million and PPE purchases also rose, 67 per cent, to $19.86 million.

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