Lindsay sticks with multi-modal transport plans


Company will continue with reduction in average fleet age and push into rail freight.

Lindsay sticks with multi-modal transport plans
Lindsay replaced 57 units last financial year as part of its fleet renewal focus.

 

Lindsay Transport will stick with the transport strategy that continues to pay dividends, the company has told investors.

This means it will continue with its horticulture and refrigerated transport niche focus, reduction in average fleet age while increasing utilisation, push into rail freight and develop new strategically located hubs.

The direction will include extracting synergies "from each division including Lindsay Fresh Logistics".

The prime mover and trailer renewal focus aims to reduce maintenance costs. The company replaced 57 units last financial year.

Lindsay has bought 10 rail reefer containers as part of its modal push, with the company saying rail "is three times more fuel efficient in transporting one tonne of freight than road transport".

Despite a 7 per cent rise in annual revenue to $315 million, the company saw net profits fall to $6.1 million from $6.5 million from the cessation of its fuel tax credit.

In the transport arm, profits before tax rose 10.5 per cent to $20.1 million, with higher fleet utilisation, cost savings and expansion into new regions seeing margins rising by 0.9 per cent to 9.1 per cent, despite revenues falling from $219 million to $216 million.

Despite the fleet age focus, repairs and maintenance costs rose slightly from $13.7 million to $14 million. But fuel and oil costs fell from $49.6 million to $39.8 million.

This was dwarfed by subcontractor spending reductions, from $49.8 million to $34.3 million, which, in turn, was offset somewhat by employee benefits expenses, up from $73.4 million to $82.9 million.

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