Bottom line rises to $4.6 million after significant items
The last annual profit for MaxiTrans was a very solid improvement on its previous one and would have been double the net profit before tax (NPAT) but for certain costs spoiling the party.
The bottom line of $4.58 million for the financial year (FY21) was almost 113% above last year’s loss of $35.5 million, representing a $40 million turnaround.
This on an 11.1% revenue rise to $353.8 million.
The company revealed on July 23 it was to split its MaxiParts business, which would be a listed entity, from trailer manufacturing, which would go to a private consortium.
The Parts business recorded a 4.8% revenue increase to finish FY21 with total revenue of $137.1 million.
This includes the sales to the Trailer Solutions business.
External revenue of $116.1 million and the Trailer business boosted revenue 16.1% to finish FY21 at $236.6 million.
Underlying net profit before tax was $13.7 million and increase of $14.4 million over the prior period loss of $700,000.
Reportable net profit after tax (NPAT) of $4.6 m included pre-tax ‘significant items’ of:
- impairmenton re-measurement of disposal group – $13.6 million pre-tax
- ERP TRANSform technology litigation settlement – $7.2 million pre-tax
- transaction and litigations costs – $2 million pre-tax.
The group also acquired the remaining 20% shares and voting interests in the Trout River Australia entity, increasing the Group’s interest held from 80% to 100%. Trout River assets are also held for sale.
Read how MaxiTrans was travelling financially this time last year, here
The group ended the year with a positive net cash position of $5.2 million an improvement of $17.1m over the FY20 net debt position of $12.1 million.
The comany’s focus on cash generation ensured ongoing control over working capital, it said.
This followed the delivery of significant improvements to working capital during FY20 through reduction in inventory and debtors.
During FY21 the firm also received cash inflows for TRANSform ERP litigation settlement of $7.2 million pre-tax, JobKeeper funds of $4.6 pre-tax as well as the utilisation of $2.7 million in carried forward tax losses for the prior period.
“Cash inflows were utilised to pay down $20.3 million in drawn debt, along with funding the fitout of the new Brisbane manufacturing facility and completing the last remaining items of the TRANSform ERP project.”
Commenting on the segments, the company said MaxiParts was impacted by growing Covid-19 related global supply chain challenges.
Trailer Solutions revenue rose 16% “predominantly due to changes to logistical transport needs as a result of Covid-19 and the return to positive agricultural market conditions.
“The increased revenue and associated earnings were offset somewhat by increased leasehold and start-up costs associated with the new manufacturing plant in Brisbane,” the company said.