Toll Holdings sees 18% profit jump
Transport and logistics provider Toll Holdings has announced an 18% increase in reported profit after tax for the six months ended 31 December 2010. The company announced profit after tax (before non recurring items) to $173m, as well as a 28% increase in revenue to $4.2bn for the six months ended 31 December 2010.
Toll Group operates across the Asian region and is headquartered in Australia.
The business recorded earnings before Interest and Tax (EBIT) of $253.9m, compared to $211m (before non-recurring items) in the prior corresponding period, an increase of 20%.
The Group achieved organic revenue growth of 7% despite a continuation of the soft economic conditions seen in key markets over recent periods and the impact of major weather events late in the period.
Acquisitions contributed strongly to overall revenue growth.
The Group continues to see the benefits from its expansion in international markets. Further development of the Groups’ global forwarding growth strategy was achieved with the acquisitions of Genesis Forwarding Group and WT Sea Air, based in the UK.
Toll generated operating cash flow before capital expenditure of $260.2m.
The company also invested $236.4m in net capital expenditure, including $104.2m on property that was previously held under finance leases by Footwork Express in Japan and $35.5m on the Toll Offshore Petroleum Services (TOPS) supply base in Singapore.
Toll Group managing director, Paul Little said: “We have delivered growth both organically and through acquisition in a period of economic and environmental challenges.
“Our Australian businesses demonstrated again why they are leaders in their segments with strong results in a difficult market. The Australian FMCG and industrial segments remain impacted by the global downturn and reduced consumer confidence, while some businesses had earnings affected by natural disasters.
“After another year of growth, Toll’s Global Forwarding division is now just outside the world’s top ten generating revenue for the half of $901m. As we predicted, it is achieving improved margins with both air and sea volumes growing strongly over this period.
“Toll Global Resources has been an excellent performer with revenue rising 7% to $371m and first half earnings topping $50m for the first time. The strength of Toll’s presence in the resources sector has proven to be a real advantage for the company through the global financial crisis.
“When we look at Footwork Express, management continues to believe that the Japanese market is ripe for a strong and efficient road express provider and remains excited about the business’ potential in the medium to long term. Our immediate focus is on staff training, operational efficiency and new business practices.
“The redevelopment of the Toll Offshore Petroleum Services base (TOPS) in Singapore continued well in this period with good progress being made in signing up tenants. A new wharf facility will be completed on site shortly opening up another revenue stream for the business.
“Recent acquisitions include: WT Sea Air and Genesis in the UK, SAT in the UAE and McLaughlin Freightlines in Australia. All these businesses are expected to add to the Group’s existing performance in the year ahead.
“Importantly, we have been able to fund these acquisitions internally while retaining adequate scope for further investments as they arise,” Little concluded.
