Prior investment in diversification, facilities and equipment now reaping rewards
Record revenue, driven by service diversification and facilities expansion, has underscored a robust financial year for Lindsay Australia.
The transport, logistics and rural supply company announced revenue of $386.07 million for the 2018-19 financial year, up 7.1 per cent on the previous year, and net profit after tax of $8.87 million, an increase of 10.2 per cent.
It notes the strong result was underpinned by investments in facility additions, equipment upgrades and diversified service offerings.
The financial contributions were led by its Transport arm, where revenue grew 7.4 per cent to $268.26 million – predominantly through expansion into refrigerated rail containers and growth from capital cities, which offset some negative impacts in regions affected by adverse weather and seasonality.
Its Rural division revenue also grew 3.7 per cent to $113.99 million, “a solid result” following a “review of low-margin branches which resulted in the closure of some sites and consolidation in some regions”.
Lindsay’s Fresh Logistics revenue also rose by 18 per cent to $5.48 million.
“This result is testament to our investment strategy which has seen us diversify our location and service offering over recent periods, mitigating industry risk and capturing new revenue,” CEO Kim Lindsay says.
“Our expansion into refrigerated rail has had a positive start with 50 new containers purchased during the 2019 financial year and another 50 planned for the first half of 2020.
“Our focus on technology evolution further supported our financial performance due to improved operational efficiencies and capacity utilisation.”
The result built on Lindsay’s first-half progress
The company spotlights its continued investment in high-demand regions, fleet and technology with capital expenditure of $25.27 million, including:
- acquisition of the Bowen facility completed in July
- opening of a greenfield Perth facility in November, predominately serviced by the addition of 50 new refrigerated rail containers.
- construction started at Sydney’s distribution hub, expected to be completed in January 2020.
“Looking ahead, our new Sydney distribution facility located at Erskine Park recently commenced construction and is expected to complete in January 2020,” Lindsay adds.
“The facility will provide much needed cold storage capacity, workshop, bulk fuel facilities and driver accommodation.”
The company also had a positive outlook for its fleet technology upgrades, with an enforceable undertaking announced earlier in year in agreement with SafeWork NSW.
“Driver safety remains paramount, which is why we have committed $1.2 million to our driver safety monitoring project which commenced in late 2019 and will complete in the first half of 2020 alongside our $1.1 million investment in real-time trailer monitoring,” Lindsay says.
“Embracing innovation delivers an offering that is not only smarter but safer for our people and for our customers.
“Our road fleet will continue to receive upgrades and technology additions, ensuring we remain first in class, while delivering efficiency and safety across our network.”
Lindsay also welcomed former Louis Dreyfus CEO Robert Green as a non-executive director, who brings “extensive knowledge of trading, importing and distribution across a range of industries” to the company.