Toll Group announces solid 2014 results

Toll Group has released its results for the last financial year, with a restructure and cost savings helping it offset some tough operating conditions

A recent company restructure and a series of cost-saving initiatives have helped Toll Group to a 1.1 per cent increase in revenue over the past financial year, the company announced on Tuesday, August 19.

The logistics giant posted sales revenue of $8.8 billion, while net profit after tax (before individually significant items) rose by 5.7 per cent to $298.5 million and total operating EBITDA (earnings before interest, tax, depreciation and amortisation) rose by one per cent to $709.5 million.

Toll Group's Managing Director, Brian Kruger (pictured), said the results were solid given the backdrop of a tough operating environment and the major infrastructure investments made by the business in recent times.

"Over recent years we have been investing in our Australian network businesses with significant capital being directed into new fleet and depots," he said.

"While this is largely sustaining spend we have also been positioning ourselves for what we see as a strong demand for logistics services in Australia in the medium and long term. This year has seen new major depots completed including Bungarribee (Sydney), Brighton (Hobart) and Karawatha (Brisbane), with a major new depot under construction at Tullamarine (Melbourne) and work commenced on a new portside facility in Fremantle.

"Cost reduction programs across the Group started to deliver a lower cost base. Our ability to implement these types of programs has been facilitated by a realignment of our core operating divisions, improved labour productivity, lower handling and linehaul costs and a Group focus on driving continuous improvement and innovation.

"A highlight of this result was the strong free cash flow of $355.1 million generated by the Group, a $126.1 million increase on the prior year. The balance sheet remains strong, with gearing (net debt to net debt plus equity) at 31 per cent ensuring sufficient balance sheet capacity to fund a range of growth initiatives."

Toll Group issued a total dividend for the year of 28.0 cents per ordinary share.

The company says it expects to generate a further $40 to $50 million in cost savings through the 2015 financial year which, along with other gains in efficiency, will see corporate earnings build.

Toll Group announces solid 2014 results

Tags