Forecast also makes mention of revenue drop and JobKeeper benefit
Listed transport operator K&S Corporation’s compelling preview of its 2019-20 financial year performance is underscored by huge profit increase, revenue decline and JobKeeper subsidies.
The company currently anticipates that reported statutory net profit before tax will be between $15.8 million and $16.8 million, compared to the prior comparative period (pcp) result of $3.2 million.
“Based on unaudited management accounts, K&S Corporation also currently anticipates that the underlying profit before tax for the year ended 30 June 2020 will be between $11.7 million and $12.7 million, compared to the prior comparative period underlying result of $3.2 million,” a company statement reads.
Read how the company viewed the previous year’s performance, here
The K&S accounts will look much different to past years, owing to operational changes, K&S notes.
“While revenues have declined significantly in the year ended 30 June 2020 as a result of business restructuring and Covid-19 impacts, K&S Corporation’s underlying performance has benefitted from its ongoing focus on improving the quality and contribution of revenue, as well as the exit from underperforming operations.
“K&S Corporation’s underlying result also benefitted from a number of cost savings measures and procurement initiatives that will provide ongoing upside in FY2021.
“K&S Corporation’s statutory result for the year ended 30 June 2020 includes the receipt of $12.4 million of JobKeeper subsidies on a before tax basis in the June 2020 quarter.”
K&S is to announce its full results on August 28.