Toll back in the black, but no dividends in near future

Toll Holdings NZ is back in the black after today announcing net profit of $41.4 million for the June year, yet will not be paying a dividend.

"Due to ongoing capital expenditure commitments and restructuring, the company does not expect to be in a position to pay dividends in the foreseeable future," chief financial officer Neil Chatfield said.

Last year, the company -- formerly known as Tranz Rail -- made a loss of $335.6 million after writedowns before the track was sold to the Government.

Australian transport company Toll Holdings took over Tranz Rail in October 2003 and rebranded the company Toll NZ the following May.

It owns 84 per cent of the company and is blocked from full ownership by US fund Third Avenue and others.

The company made trading revenue of $678m, an increase of 7.5 per cent. Ebit was $59.5m -- up from $35.7m.

Toll NZ refurbished the passenger vessel Arahura during the year, and replaced the Lynx and Purbeck with a high capacity passenger and freight vessel, the Kaitaki.

"The Kaitaki is expected to increase Toll NZ's Cook Strait passenger and freight capacity," Mr Chatfield said.

Other key developments included a new long term contract with Solid Energy and the introduction of coal shipments for Genesis.

In addition, a new contract with Fonterra at Te Rapa established rail as a major transporter of dairy exports to ports in the upper North Island.

The company's operating cashflow for the year improved from $57.7m to $82.9m, while net debt was $190.2m, compared to the previous $248.6m.

Toll NZ shares were flat on $3.40 at midday.

- NZPA