Lindsay Delivers H1 FY21 Growth in Revenue, Profit and Dividends

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     Lindsay has delivered strong performance driven by the Company's Transport and Rural Services
    segments, achieving H1 FY21 growth in underlying1 EBITDA of 12.1% to $26.1 million on record
    half‐yearly revenue of $219 million.
     Rail expansion remains Lindsay's primary organic growth strategy in Transport, with the
    Company planning to expand its fleet by 110 refrigerated containers in FY21 (59%).
     Lindsay continues to invest in operational efficiency and cost controls, achieving positive
    EBITDA contributions from all divisions alongside reductions in corporate overheads.
     Lindsay Board of Directors have declared an interim fully franked dividend of
    1.2 cents per ordinary share (H1 FY20: 1.0 cent per share).
     Lindsay retains a strong position to drive continued profitable growth both organically and
    positioning to take advantage of opportunities as they arise.
    BRISBANE 23 February 2021: Integrated transport, logistics and rural supply company Lindsay Australia Limited
    (ASX: LAU, "Lindsay" or "the Company") is pleased to announce its financial results for the half‐year ended 31
    December 2020, delivering growth in revenue, profit and dividends.
    Financial Highlights
    The Company increased its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by
    12.1% year‐on‐year, achieving $26.1 million of underlying EBITDA on record half‐yearly revenue of $219 million.
    Reflecting a continued focus on cost controls and improving operational efficiency, Lindsay achieved positive
    EBITDA contributions from both divisions ‐ alongside reductions in corporate overheads.
    Similarly, underlying profit before tax (PBT) benefitted from improvements from both divisions, increasing
    $1.7 million (+19%) from H1 FY20 to $10.4 million. A reconciliation of the underlying results is provided in the
    tables in the Interim Financial Report.
    1 Underlying operations defined in this release are the Group’s reported financial results as set out in the financial statements, adjusted for significant items that
    are non-recurring or items incurred outside the ordinary operations of the Group and excludes the impact of adopting AASB 16. Refer to H1 FY21 interim
    financial report for detailed reconciliation of underlying operations.

    ABN 81 061 642 733
    152 Postle Street
    Acacia Ridge QLD 4110
    Locked Bag 2004
    Archerfield Qld 4108
    P: 07 3240 4900 F: 07 3054 0240
    The Company generated net operating cash flows of $19.9 million in H1 FY21, an increase of $2.3 million (+13%)
    compared to $17.5 million in H1 FY20. Historically, Lindsay achieves improved operating cash flow in the second
    half of the financial year due to seasonality of the Group's customer mix. Operating cash flow is also expected to
    benefit in H2 FY21 from a reduction in tax payments due to the Australian Government stimulus programs
    announced in response to COVID‐19.
    The Company's strong operating results have allowed the Board to declare an interim fully franked dividend of
    1.2 cents per ordinary share (H1 FY20: 1.0 cent per share), payable to shareholders on 9 April 2021, with a record
    date of 26 March 2021.
    Lindsay entered H2 FY21 with $17.95 million in cash and a rolling 12‐month net leverage ratio2 of
    2.38 (H1 FY20: 2.64), providing flexibility and capacity to fund the Company’s growth objectives.
    Strategic and Operational Highlights
    As a leading national provider of transport and logistics and rural services to the horticulture and food related
    industries, Lindsay remains committed to maintaining its role as an essential service provider and its key role in the
    nation's food supply chain.
    Lindsay’s growth strategy remains focused on diversifying the range of products, services and geographical reach
    and continue to meet the evolving customers' needs by investing in capacity, facilities, equipment and technology
    and cost efficiency initiatives, ultimately delivering value for customers, employees and shareholders.
    The Company’s H1 FY21 underlying EBITDA result was driven by improvements in both Transport, where the
    Company continues to expand and diversify its customer base and increase its refrigerated rail capacity through
    new equipment additions, and Rural Services, where the Company continues to diversify its product mix and focus
    on high growth regions.
    In Transport, Lindsay continues to expand its presence in North Queensland, while the Company’s rail operations
    build freight volumes in capital cities. Rail expansion remains Lindsay's primary organic growth strategy in
    Transport, with 231 containers in operation (excluding hire containers) as at 31 December 2020, after acquiring 45
    during the period. The division plans to add another 65 refrigerated containers in H2 FY21. Rail remains an
    efficient, lower capital investment strategy to achieve organic growth and is highly complementary to the extensive
    network of refrigerated facilities and road fleet. Transport revenue (including external and inter‐segment) was on
    par with H1 FY20 of $152.6 million due to reduced fuel recoveries and lower import and export logistics revenue.
    The Rural division continued to build on the scalable platform that the Company developed in prior years, focusing
    on high‐growth horticulture regions that offer strategic synergies with the Transport division. Rural revenue
    (including external and inter‐segment) increased by $1.8 million (+2.7%) in H1 FY21, driven by sales growth across
    several key regions and an increasingly diversified sales mix. The Company is evaluating growth opportunities to
    leverage key areas and bring further support to the Transport division’s network.
    In the Fresh Logistics division, revenue from import and export services remained materially impacted by COVID‐19
    and the associated global and domestic restrictions on air freight, with external revenues down 42.8% in H1 FY21.
    The division has been able to offset some of the impacts by accessing the Government's Job Keeper program, with
    the Company receiving $1.57 million in wage subsidies for the half‐year.
    2 Net leverage ratio = Net debt/underlying EBITDA. Net debt excludes property lease liabilities relating to the adoption of AASB 16.

    ABN 81 061 642 733
    152 Postle Street
    Acacia Ridge QLD 4110
    Locked Bag 2004
    Archerfield Qld 4108
    P: 07 3240 4900 F: 07 3054 0240
    Commentary on H1 FY21 Results
    Lindsay Australia CEO, Kim Lindsay, said:
    “We are pleased to deliver a strong H1 FY21 result to our shareholders, especially so considering the uncertain
    market conditions that many businesses in the fresh food supply chain faced during 2020. We continue to focus on
    our strengths and are driving efficiency gains in key areas to maintain our competitive edge. At the same time, we
    remain proactive in our ongoing efforts to diversify Lindsay’s offerings throughout our vertically integrated business
    units in a way that mitigates the effects of weather and seasonality.
    We service customers throughout Australia across several industries, including fresh produce, horticulture, food
    processing, food services and logistics. Our customers’ needs continue to evolve, and it’s a testament to our
    Company's longevity that Lindsay Australia continues to deliver new and innovative solutions to meet these
    changing requirements.
    Our strong financial and operating performance, coupled with a robust balance sheet, positions Lindsay well to
    return capital to shareholders via dividends, which we were pleased to increase this half‐year. The strength of our
    business model allows us to pay dividends while retaining sufficient balance sheet flexibility to consider potential
    opportunities to accelerate the growth of our business. We remain confident that our diversified model and
    strategic initiatives will deliver ongoing growth for our shareholders.
    Subject to potential COVID‐19 related impacts and unforeseen weather events, we anticipate the current level of
    underlying EBITDA growth to be maintained in H2 FY21.”
    Release authorised by the Lindsay Australia Board of Directors.

    courtesy of Bell Direct


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