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Transport and logistics provider Toll Holdings has posted an annual net loss of nearly $700 million after the non-cash restructure of its Virgin Blue investment, but stayed optimistic on the company’s outlook. Profit from continuing operations was up eightfold to $250m.
The company recorded a total loss of $952 million, down 154 per cent on the previous year. The loss was partially offset by after tax earnings of $258 million, mainly gained from sale of the New Zealand rail and ferry operations.
Toll managing director Paul Little said the results were satisfying and the company’s organic growth prospect remained positive.
“We are pleased with the performance of our core operations, the integration of several new acquisitions and our balance sheet strength, which will all support our ongoing strategic development,” Mr Little said.
During the year, revenue from continuing operations rose from $.4.9 billion to $5.6 billion, with Australia and Toll Asia showing significant growths of 7.5 per cent and 12.5 per cent respectively.
“The continuing growth in organic revenue reflects the attraction and benefit of the company’s integrated model, and our ability to drive lower supply chain costs for our customer base. This is particularly important during more economically challenging periods,” he said.
The company’s net debt was cut to $650 million, following receipt after year end of the proceeds on sale of the New Zealand transport operations. Interest cover exceeded 12 times for the year in respect of continuing operations, whilst operating cashflow was $496 million.
“With its strong cashflow generation and interest cover, together with low gearing of 24% following settlement of the New Zealand sale, the company remains in a very solid position to take advantage of growth opportunities as they arise and to deliver continued strong results,” the company’s chief financial officer Neil Chatfield said.
The company said the strength of its ongoing cashflows and debt capacity will enable it to pursue growth opportunities, both in Australia and in support of its Global Forwarding and Asian contract logistics businesses.
“Results to date for the June 2009 financial year have remained solid and tracking well ahead of last year. Based on current trading conditions, the outlook for the full year is for strong earnings and cashflow generation to continue across the business,” it said.
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