TRANSPACIFIC MINIMISES WASTE TO BRING RETURNS

Written on the 23 February 2012

TRANSPACIFIC MINIMISES WASTE TO BRING RETURNS

TRANSPACIFIC Industries Group (ASX:TPI) today revealed its $16.5 million net profit after tax for the six months to December 31, 2011 was 48 per cent less than the previous corresponding period.

CEO Kevin Campbell (pictured) cites challenging economic conditions in Australia and New Zealand, but denies the Christchurch earthquakes had a major effect.

"After the tremors in New Zealand our people still collected waste. We had people lining up bins for collection. Our trucks also went out on their own free will to help clean-up efforts," he says.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 4.3 per cent to $220.2 million.

The commercial vehicles division was a key performer, increasing revenue by 31 due to higher demand for Western Star and MAN heavy duty vehicles. Manufacturing broke even and the total waste management businesses produced modest growth and stable profit margins.

Campbell estimates a combined $150-170 million of waste management contracts are available each cycle, saying TPI typically secures 43-44 per cent of them the same as in the second half of fiscal 2011.

"Competition is healthy, sometimes you win and sometimes you lose on price, perception of service but it is a rational market. We include our high customer service standard in our pitches," says Campbell.

Net debt was $1.11 billion as of December 31, 2011 down 21 per cent from six months earlier. It follows TPI's successful refinancing package comprising of a $1.525 billion syndicated debt facility and $309 million renounceable entitlement offer.

"The refinancing package successfully completed in November 2011 is allowing us to focus on the business and operational improvements that can be achieved across all divisions within the company," says Campbell.

CFO Stewart Cummins reveals that dividends are unlikely to be paid in the current or coming financial years.

"It is important to improve profitability of the business and return on capital. Fiscal 2012 will be a year of refinancing," he says.

TPI shares today fell slightly to 83 cents per unit.

*Please note: Transpacific Industries Group (ASX:TPI) completed a changed of name to Cleanaway Waste Management (ASX:CWY) on July 1, 2016


Latest News

SUPREME COURT ORDERS OCTAVIAR GROUP TO WIND UP

THE Queensland Supreme Court has ordered the Octaviar Group of companies (formerly known as MFS Group) to be wound...

CEOS BRAVE THE COLD TO RAISE $1.4 MILLION FOR THE HOMELESS

MORE than 400 executives confronted the cold last night in the annual Vinnies CEO sleepout, which took place benea...

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT "DESPERATION"

South Australia's new bank levy exposes the desperation of a government that is unable to get its own budget and ...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter