Trailer Magazine

Lindsay Australia maintains continuity of operations during Covid-19

  • Posted on Thursday 25th, June 2020.

Kim Lindsay, CEO and Managing Director of Lindsay Australia, has released a market update and earnings guidance for FY2020.

The transport and logistics company is committed to maintaining its services, particularly in the food supply chain, during unprecedented times.

The company has responded to the Covid-19 pandemic with a focus on customer communications, safety and compliance. The onset of the coronavirus outbreak saw a surge in consumer activity during March 2020 throughout supermarkets and many product lines, leading to an increase in demand for certain freight activities.

"These market conditions have now abated, and there has been a material flattening and decline in demand experienced May and June 2020 resulting in a significant reduction in freight tasks," said Kim Lindsay.

"This flattening generally coincides with an end to Covid-19 related panic buying for many products, and as widely reported a decrease in economic activity and conditions within the domestic economy," he said.

Lindsay Australia amended its FY2020 earnings guidance on 22 June 2020 from underlying EBITDA growth of around 10 per cent to underlying EBITDA growth of around 5.0 per cent.

Underlying EBITDA for FY2019 of $37.72 million excluded additional fuel tax credits relating to prior years of $2.69 million as previously reported.

Underlying EBITDA for FY2020 excludes the impact of AASB16 that was adopted on 1 July 2019 and one-off restructure costs.

"Despite this extreme market uncertainty, the company remains well positioned to respond to changing market dynamics, the new Sydney distribution hub provides a strong capability to meet market growth challenges in the future, while the company continues to benefit from its extended rail capacity," said Kim Lindsay.

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