Group seeks best of both modes as results lift on same time last year
Lindsay Australia has hit half way in the financial year with strong 12.5 per cent rise in net profits after tax to $6.51 million compared with the prior corresponding period (PCP).
The transport, logistics and rural supplies giant makes that grade on a 1.2 per cent rise in interim revenues against the PCP to $219 million.
CEO Kim Lindsay sees the performance as especially welcome, given the Covid-19 economic impact last year and pledges the company to continuing diversification “in a way that mitigates the effects of weather and seasonality”.
“Our customer needs continue to evolve, and it’s a testament to our company’s longevity that Lindsay Australia continues to deliver new and innovative solutions to meet these changing requirements” he says.
One of those is building the use of rail by its transport division, which has grown steadily in the past few years.
“In Transport, Lindsay continues to expand its presence in North Queensland, while the company’s rail operations build freight volumes in capital cities,” the firm says.
“Rail expansion remains Lindsay’s primary organic growth strategy in Transport, with 231 containers in operation (excluding hire containers) as at 31 December 2020, after acquiring 45 during the period.”
And 65 more are on the way in the second half, when the upside of seasonality kicks in.
“Rail remains an efficient, lower capital investment strategy to achieve organic growth and is highly complementary to the extensive network of refrigerated facilities and road fleet,” it adds.
Read how Lindsay was seeing gains from rail in last year’s results, here
The division reports and underlying profit before tax of $18.15 million, compared with the PCP of $17.1 million.
“’Reductions in import and export logistic revenues from Lindsay Fresh and lower fuel levy recoveries were mitigated by increases in rail revenue through new customer additions and capacity expansion,” the company says.
It wasn’t unscathed by the pandemic, however, saying its Lindsay Fresh Logistics arm was hit by a shortage of available airfreight services
“The capacity restraint also has an impact on the ancillary services that the division offers,” the firm says.
“The group expects to experience capacity restraints and impactrs on revenue for the remainder of FY21.”
Lindsay Fresh remains eligible for Job Keeper subsidies and tapped that for $1.57 in the first half.