Lindsay travelling nicely with interim profit rise


Boost comes on back of solid boost to first half revenues

Lindsay travelling nicely with interim profit rise
Lindsay’s first half was solid

 

Integrated transport, logistics and rural supply company Lindsay Australia has seen its net profit after tax (NPAT) of $5.8 million, up 7.2 per cent over the prior corresponding period (PCP).

And the good news is expected to continue, with earnings before interest, tax, depreciation and amortisation (EBITDA) expected to be 10 per cent up for the year.

Revenues across the group grew 6.3 per cent to $216 million, "as strategic diversification mitigated softer road freight volumes in some regions", the company says.

Despite that, Lindsay Transport revenue grew 7.1 per cent, "driven by expansion into refrigerated rail containers along with growth from capital cities", while Lindsay Rural revenue grew 5 per cent.

The group saw continued investment in high demand locations, fleet and technology upgrades, with capital expenditure  of $16.8 million, including more than $5 million invested in additional refrigerated rail capacity and associated equipment.

Construction at Sydney’s distribution hub progressed, with completion expected in early March.

The purpose-built facility will feature increased cold storage capacity, workshop, bulk fuel facilities and driver accommodation.

Transport freight revenue for the half year grew $10.1 million, up 7.1 per cent on the PCP.

Produce freight volumes were negatively impacted in some regions due to adverse weather and seasonality but these reductions were offset by growth across capital cities and additional revenue from expansion into refrigerated rail.

The recent bushfires did not have a material impact on the division, however, additional costs were incurred due to the re-routing of some journeys.

 Transport made a divisional contribution in of $17 million, an increase of 5.5 per cent on PCP.


Read how Lindsay Australia performed in the last financial year, here


 

"We are pleased to announce a strong set of results for the six months to 31 December 2019, we have once again demonstrated our ability to mitigate weather and seasonality through the diversification of our product and location offering Lindsay Australia CEO Kim Lindsay says.

"We have also seen the benefit of our Rural division’s strategic review which resulted in substantial profit growth for the division as overheads were reduced and resources were reallocated to drive revenue in the high growth regions and branches."

"Our expansion into refrigerated rail continues to drive both revenue and bottom line contribution for the transport division while providing freight solution optionality to our customers.

"Recognised as one of the most environmentally friendly forms of passage, rail provides the additional benefit of a reduced carbon footprint, supporting our commitment to building a sustainable and responsible business model for our customers, our people and all stakeholders.

"Recent rain in some of the Group’s key horticulture areas located in Queensland and New South Wales was well received.

"Although more rain is needed in some of these regions, we remain confident that our diversified model and strategic initiatives will deliver another year of growth for our shareholders.

"Subject to no unforeseen events we expect underlying EBITDA growth of around 10% for the full year."

 

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