Lindsay maintains earnings surge during pandemic


New Sydney hub a timely facilitator of Covid-19 operations load

Lindsay maintains earnings surge during pandemic
Lindsay Australia say it's on track to reach FY20 growth projections

 

At a time when many listed firms are withdrawing their earnings guidance due to Covid-19 disruptions, integrated transport, logistics and rural supply company Lindsay Australia remains steadfast in reaching its projected yearly growth ambitions.

Like many in the food supply chain and related sectors, including horticulture in Lindsay’s instance, the company observes "demand for the company’s services remains strong during this time due to high demand for food consumables".

It emphasises its market guidance of around 10 per cent EBITDA [earnings before interest, taxes, depreciation, and amortisation] growth for the 2020 financial year remains unchanged.

"Despite these challenging and unprecedented times which includes some increases in operating costs arising from Covid-19, demand for key transport and logistics services remains high and operations continue to perform well, consistent with expectations," Lindsay notes in a trading update.

"The company is supported by its strategic positioning across all major capital cities, diversified customer and product mix, a continual investment ethos and experienced management team."

Lindsay expects all company sites will remain open and operational to support the food freight task, and intends to maintain or expand its workforce as demand requires.

"Whilst the company aims to remain fully operational during this unprecedented time, the company is aware that circumstances are subject to continual change," it adds.

"Unforeseeable risks may arise that impact on outcomes or results, including those risks or events outside the immediate Covid-19 related issues."

A welcome development has been the construction of its new purpose-built distribution hub at Sydney, which is now fully operational.

"The commencement of operations at the new Sydney depot is timely in this context as it brings significant capability enhancements," it adds.


More on Lindsay's new Erskine Park facility, here


COVID-19 Initiatives

Like many of its contemporaries, Lindsay outlines its measures to maintain operations and keep staff and customers as safe as possible during the pandemic, including:

  • engaging with relevant stakeholders regarding interstate transit arrangements. Heavy vehicles are currently exempt from interstate transit restrictions
  • continually developing and enhancing our business and continuity plans;
  • the company is engaging with customers to implement paperless solutions to enhance operational efficiencies and minimise personal contact and virus transmission risk
  • increased infection control procedures relating to personal hygiene, including providing additional alcohol-based sanitiser and cleaning supplies
  • increased infection control procedures relating to cleanliness of workplace. Procuring additional equipment to facilitate hygiene initiatives for vehicles, equipment and high touch surfaces
  • changing and rotating shift arrangements, employees working from home where practical and social distancing in the workplace
  • restricted access to sites and buildings for employees, contractors and visitors
  • self-isolation requirements for employees with proven or suspected case of Covid-19
  • frequent communication with employees around COVID-19 risk and mitigation strategies
  • employees are required to stay away from the workplace if they are unwell and are encouraged to seek medical advice as appropriate
  • providing clear information to workers about actions they should take if they become unwell or think they may have symptoms of COVID-19 and links to relevant services should they require support
  • closely monitoring official advice, such as updates from governments including the Department of Health and the WHO and communicating this advice to employees
  • contingency planning to manage staff absences and plans to manage increased workloads
  • extensive travel restrictions.

Lindsay adds it continues to engage with its suppliers to ensure continuity of supply of critical resources, such as rural supply products to support growers, fuel and vehicle parts; and those who provide essential services including equipment maintenance.

 

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