Listed transport and logistics group Fliway Group says full-year profit jumped 156% as lower costs make up for a drop in international revenue.
Revenue fell in the year ended June 30 as a result of a “reduced fuel adjustment factor” and the loss of Dick Smith Electronics as a customer in the domestic division, and depressed shipping rates and lower freight volumes in the International business, Fliway said.
In June the company said it lost a major customer, which would hurt revenue and earnings in 2017. The customer, which it didn’t identify, accounted for about 10% of Fliway’s earnings before interest, tax, depreciation and amortisation in the 2016 year.
Profit rose to $5.6 million in the year from $2.19 million a year earlier, while sales fell 1.8% to $82.6 million.
Domestic revenue fell 0.2% to $55.7 million and earnings before interest, tax, depreciation and amortisation gained 21% to $10.2 million. In international, sales fell 4.9% to about $27 million and ebitda dropped 7.7% to $3.6 million. The outlook for international remains challenging, Fliway said.
Fliway will pay a final dividend of 5.35c a share, up from 2.8c a year earlier, bringing total payments for the year to 8.65c.
Net debt fell 30% to $5.8 million while operating cash flow rose to $6.7 million from $5.7 million. Capital spending fell to $2.6 million from $4.6 million.
“Fliway’s increased balance sheet strength provides considerable headroom on all banking covenants,” the company said.
Chairman Craig Stobo said the company will focus on cost control while working to strengthen existing customer relationships, making acquisitions and pursuing work in new sectors. “While we continue to experience softer revenue we are aggressively managing costs to protect the profit position.”
The stock last traded at 95c after being sold at $1.20 in an initial public offering in April last year.
