Annual results – Toll positioned for sustainable, disciplined growth

An increased focus on returns delivers sound results in difficult market conditions • Outstanding second half cash conversion • Continued investment and a renewed focus on sustainable growth opportunities
 
Toll Group today released its annual results for the 2011/12 financial year, with strong returns in its traditional businesses allowing Toll to continue to pursue sustainable growth opportunities.
 
Sales revenue for the year ending 30 June 2012 was up six per cent on the previous year to $8.7 billion, with total operating profit (EBIT) and net profit after tax (before non-recurring items) both down six per cent to $411 million and $274 million respectively. 
 
Speaking at today’s announcement, Toll Group Managing Director Brian Kruger said he was pleased with overall performance given difficult market conditions, and praised the disciplined approach that resulted in Toll’s outstanding second half cash conversion, and the continued strength of its balance sheet.
 
“An increased focus on returns across our six divisions, and our strong financial position mean Toll is well placed tocontinue to pursue opportunities for sustainable growth,” Mr Kruger said.
 
“Our specialised resources division, Toll Global Resources, was able to continue to grow its offering to the mining and energy sectors and saw strong revenue and new contract wins as a result.
 
“Toll Global Logistics retained key customers and achieved new customer wins while also seeing the benefits of a recovery in earnings from its automotive logistics business.
 
“The Toll Global Forwarding division continued to face challenging markets but has made good progress on internal productivity initiatives. 
 
“Toll Global Express continued to deliver strong returns from its Australian businesses despite soft markets in some areas, and also launched its new B2C parcel delivery service to help capitalise on the growing ‘e-tail’ purchases market. A strategic review of the Japan express business continues.
 
“Toll Domestic Forwarding managed to produce a solid underlying result despite flat industry-wide volumes. Recovery in its Tasmanian shipping business was largely offset by losses in its Australian refrigerated interstate linehaul and warehousing operations, which were sold in July.
 
“And we saw a strong result for our Toll Specialised and Domestic Freight division, with growth in revenue, earnings and returns generated by increased resource sector activity, contract wins and cost improvement programs.”
 
Looking ahead, Mr Kruger said Toll’s strong balance sheet means Toll remains well placed to continue to pursue opportunities for organic growth.
 
“While we don’t expect any short term improvement in external conditions, recent new contract wins combined with our ongoing investment in fleet, property and IT will help us support future earnings growth. 
 
“Toll is well positioned to continue sustainable, disciplined growth in the years to come.” 
 
Toll maintained its fully franked final dividend of 13.5 cents per share (full year 25 cents per share) which will be paid to shareholders on 22 October.