Logistics group, Toll (TOL) has forecast improved trading in the 2015 year after lifting dividend off the back of a sharp improvement in profit for the year to June 30.
Toll yesterday revealed a net profit of $286.1 million for the year to June 30, up from $84.5 million the previous year, which had been cut by nearly a quarter of a billion dollars in impairments.
Excluding those impairment losses, underlying earnings before interest and taxation (EBIT) rose 4% to $444.4 million, slightly higher than analysts’ consensus forecasts of $438 million.
The improved result was struck on a 1.1% rise in group revenue $8.8 billion.
Toll said directors had decided to pay a fully franked final dividend of 15 cents a share compared to 14.5 cents last year, making 28 cents for the year, up from 27 cents.
Director forecast “higher earnings” in fiscal 2015, but added that operating conditions remained “difficult”.
TOL 1Y – Toll triples profit
"The external business environment remains difficult," CEO Brian Kruger said in yesterday’s statement.
"We will continue to pursue business improvement initiatives including cost reductions and investments in productivity enhancing projects which, combined with our disciplined capital management approach, will see returns improved for shareholders and an increase in our leverage to any improvement in the external environment.
"We expect to generate between $40-50 million in cost savings during FY15 from investments in restructuring programs implemented or committed to in FY14, including the cost savings targeted in Toll Global Forwarding.
"Assuming no material change in the external environment, we expect that these savings, other efficiency gains and other growth initiatives will deliver higher earnings for Toll in FY15."
Toll’s statutory net profits for 2014 trebled to $293.1 million after it took $245 million of impairment losses in 2012-13, which cut that year’s net profit to $91.7 million.
“Restructuring and cost improvement initiatives together with new contract wins more than offset the generally challenging market conditions experienced during the year,” Toll said directors said yesterday.
In May Toll announced a restructuring of the group which cut its the number of its business divisions, enabling it to save between $10 million and $12 million a year, and had said more cost cuts would be revealed at its full-year results.
Toll shares rose 5% yesterday to $5.67 yesterday.
TOL Results Video
