One-off items mar solid Lindsay interim performance

Group expects second half turnaround after offsets and expenses hit bottom line

One-off items mar solid Lindsay interim performance
Kim Lindsay expects a better outcome in the full-year results


Lindsay Australia saw its first-half net profit after tax (NPAT) come in at $5 million deficit, down 15.6 per cent on the previous first half, despite capacity utilisation and new customers and pricing coming to the fore.

The transport and logistics and rural supplies firm was down 19.9 per cent to $5 million and, but for the $2.5 million fuel tax credit in the previous first half and "non-assessable R&D tax offsets and certain non-deductable expenses", the firm says the underlying profit rise would have been 29 per cent.

Revenues, however, were up 8.2 per cent to 191.6 million.

The positives were mainly with the transport arm, which saw sales up 8.3 per cent and gross profits up 7.5 per cent to $16.2 million, while the rural arm was unable to translate a 10.3 per cent sales rise to anything more than a 28.5 per cent fall in contributions.   

The six months saw a mixed picture in costs, though rises outweighed falls.

Vehicle operations up nearly $5 million to $275.5 million and employee benefits the dame amount to $55.3 million, while subcontractors were down about $1.6 million to $15.7 million and depreciation and amortisation almost the same amount to $9.38 million. Pallet expenses were also down marginally.

Lindsay has previously extolled the positives of its IT revamp and the company sees that as still flowing through.

"Lindsay Transport produced an outstanding result, which has been delivered by our investment in technology and fleet upgrades, focus on increased utilisation rates and ability to push through price increases," CEO Kim Lindsay says.

He adds that, the good start to the year "combined with the solid performance of the first six months positions us well to meet full year market expectations of around 20 per cent net profit growth subject to no adverse weather and unforeseen events".


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