K&S Corporation Limited Results for the Half Year Ended 31 December 2023

K&S Corporation Limited reported an underlying profit before tax of $24.4 million for the half year ended 31 December 2023, a 1.0% increase from the previous period.

Transport and logistics

K&S Corporation Limited Results for the Half Year Ended 31 December 2023

  1. K&S Corporation Limited reported an underlying profit before tax of $24.4 million for the half year ended 31 December 2023, a 1.0% increase from the previous period.

  2. The underlying profit after tax was $16.9 million, a slight decrease of 0.4% compared to the prior corresponding period.

  3. Statutory profit before tax for the same period was $23.9 million, up 9.6%, and statutory profit after tax was $16.6 million, an 8.1% increase.


  4. The results include a significant item of a $0.5 million loss due to the fair value of the Group’s interest rate swap.

  5. Operating revenue was $422.9 million, down by 2.9% from the previous period, with operating cash flow at $29.1 million, $17.2 million lower than before.

  6. The Australian Transport segment showed stable steel volumes, sound contract logistics performance, and steady contributions from heavy haulage and specialized aviation refuelling businesses.

  7. Cost reduction strategies across the business have positively impacted the results.

  8. K&S Fuels contributed soundly to the first half results with stable revenue.

  9. The New Zealand operation experienced a weaker half due to softer domestic economic conditions.

  10. Net debt increased to $22.2 million from a record low of ($0.4) million as of 30 June 2023, with the gearing ratio rising to 6.4%.

  11. Debt levels rose mainly due to the acquisition of industrial properties in Townsville and Adelaide for $20.3 million.

  12. The Group extended the maturity profile of its debt facilities and negotiated improved terms, totaling $205 million in funding.

  13. Safety remains a priority, with a 37.5% improvement in the lost time injury frequency rate to 4.5 as of December 2023.

  14. A fully franked interim dividend of 10.0 cents per share has been declared, payable on 3rd April 2024.

  15. The outlook for the second half of FY2024 is cautious due to inflation, interest rate environment, cost-base pressures, and lower construction activity, despite strong first-half results and secure long-term bank facilities.