Toll back in form with $23m first-half profit

Rail and ferry operator Toll NZ is being nursed back to good health, yesterday announcing a 300 per cent increase in first-half profit.

Toll NZ, 84 per cent owned by Australia's Toll Holdings, reported a net after-tax profit of $23.2 million for the six months to December 31, compared with $6 million in the same period a year earlier.

Last year's result was revised down from $9 million in line with new international financial reporting standards.

Toll NZ, which operates the national rail network and Interislander ferries, said it continued to experience "strong organic growth", although that slowed in the December quarter as import and export volumes fell.

Trading revenue rose 5.7 per cent to $347 million, while earnings per share rose to 11cps from 3cps.

No dividend was declared, due to ongoing restructuring and capital expenditure commitments.

Toll NZ didn't incur a tax expense for the first half due to carried forward income tax losses.

During the period, Toll NZ completed major new rail projects like the Te Rapa warehouse facility in the Waikato for dairy giant Fonterra.

Toll Tranzlink sold its refrigeration business to Halls Transport in December, entering an agreement which would provide both an opportunity to expand the refrigerated rail market.

Toll NZ refurbished Interislander ferry Aratere during the first half , and Kaitaki, commissioned in August, attracted strong forward bookings.

Operating cashflow for the half year was $31.5 million compared with $33.4 million and net debt was $208 million at balance date compared with $207 million before.

Since balance date, Toll NZ said it had traded in line with expectations, and was confident about the outlook for the rest of the year.

- NZPA