Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Transpacific Industries returns to annual profit

Transpacific Industries returns to profit, helped by sale of NZ unit

By Suze Metherell

Aug. 19 (BusinessDesk) - Transpacific Industries Group, the Queensland-based waste-management company, returned to profit and will resume paying dividends after a six-year pause after using proceeds from asset sales to repay debt.

Profit from continuing and discontinued operations was A$28.9 million in the year ended June 30, 2014, turning around a loss of A$200.4 million a year earlier, the company said in a statement. Revenue fell 4.9 percent to A$1.42 billion as sales in its Cleanaway business and industrial segment declined. The group declared a dividend of 1.5 Australian cents per share, with a record date of Aug. 29 to be paid on Oct. 8. The company has not paid dividends since 2008, it said.

The waste manager hired new chief executive Bob Boucher last October as part of its plan to strengthen its balance sheet after a debt-fuelled expansion before the global financial crisis, culminating in 2008 with the A$1.25 billion acquisition of rival Cleanaway to create Australasia’s biggest waste disposal firm.

Transpacific Industries sold its New Zealand business to Beijing Capital for $950 million, recognising a gain of A$41.1 million, having acquired the operation for $870 million in 2006. Separately, it sold its Commercial Vehicles for a gain of A$131 million.

After using the proceeds from asset sales to repay debt, Transpacific Industries had a net cash position of A$137 million at June 30, from a net debt position of A$978 million a year earlier, it said.

"The transformation of our balance sheet has been completed," said Boucher, after the company sold or closed 39 non-core, under performing branches as well as the New Zealand and vehicle businesses. "The next phase is improving our operational performance and laying a solid platform for growing our business and improving cash flows."

Transpacific Industries took a A$189 million after-tax charge related to landfill rectification and remediation provisions, which was offset by the business sale income.

The dual-listed shares rarely trade on the NZX and were unchanged at $1.20, having declined 11 percent this year. On the ASX they last declined 7.6 percent to A$1.01, and have fallen 6.6 percent since the start of the year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news