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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news