REGIONAL transport giant K&S Corporation Limited has announced a jump in profits after an increase in operating revenue.
Announcing last financial year’s results last week, the transport operator achieved a statutory profit before tax of $24.6m.
This is an increase on the previous corresponding period of 161.7pc for the full year ending June 30, 2018.
The trucking company’s operating revenue also increased by 13.2pc to $854.6m.
Underlying profit before tax was $11m – an increase on the previous corresponding period of 1.8pc.
The underlying profit after tax was $7.7m, an increase on the previous corresponding period of 2pc.
The trucking company reported market activity in the Western Australian resource business has started to gain momentum in the second half of the year.
In addition, K&S was awarded a contract for Roy Hill.
Activity levels are expected to improve following the recent announcement of new mine developments.
Trading margins remain under pressure from high levels of competition.
“South32 coal volumes have continued to fluctuate around lower than historical levels as a consequence of ongoing mine issues experienced at the Appin colliery,” the statement said.
“We anticipate that South32 coal volumes will increase in FY19.”
The chemical transport division, Chemtrans, also realised lower returns as a result of reduced demand.
Both the DTM and New Zealand businesses, which are predominantly aligned to contract logistics, have continued to realise steady improvement with volumes and performance.
“Despite reduced agricultural demand, the specialist aviation refuelling business Aero Refuellers has performed well, realising further improvement,” the statement said.
“Similarly to our fuel trading business, K&S Agencies continues to expand and realise solid financial results.”
