Profit forecast well above last year as efficiency gains and JobKeeper realised
K&S Corporation presents investors with a bright outlook in a trading update to the Australian Securities Exchange (ASX).
Based on unaudited management accounts, the company anticipates its underlying profit before tax for the half-year ended December 31, 2020, will be between $8.8 million and $9.8 million, around 57-75 per cent up on the prior corresponding period (pcp).
K&S also anticipates that reported statutory net profit before tax for the half-year will be between $24 million and $25 million, about 471-496 per cent up on the prior comparative period.
“While revenues of some divisions continue to experience Covid-19 impacts, K&S Corporation’s underlying performance continues to benefit from the focus on improving the quality and contribution of revenue, as well as the cessation of operations that do not realise satisfactory and sustainable financial performance,” the company explains in its announcement.
“K&S Corporation’s underlying result also benefitted from a number of cost savings measures and procurement initiatives that are providing ongoing upside in FY2021.”
The last financial year was seen as transformative for K&S
Despite this, the statutory result is bolstered by the inclusion the receipt of $16.2 million of JobKeeper subsidies on a pre-tax basis.
The company expects to announce its statutory results for the half year ended 31 December 2020 on February 24