Diversification helped Toxfree maintain profits in the last financial year, with its waste services a strong contributor.
One of Australia’s leading environment, waste management and industrial services providers, Toxfree posted its 2016 Full Year Results on 23 August.
Underlying net profit after tax was up 1 per cent on FYR15 to $23.3 million, and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $72.9 million, also up 1 per cent on the previous year.
In his statement to market, Managing Director Steve Gostlow described the company’s balance sheet as “very sound”, as the Board agreed a final year dividend of nine cents per share.
In sharing particular strengths across the business, Mr Gostlow highlighted the diversification of waste treatment capabilities and market share in NSW with the acquisition and integration of Worth Recycling.
Earnings from east coast waste treatment facilities increased by 28 per cent on FY15 offsetting similar reductions in earnings from West Australian facilities. Also highlighted was the continued roll-out of Community Recycling Centres contract with NSW EPA, with 60 sites now in place and a further 40 sites to be rolled out over the next 12 months.
The Waste Services results showed Queensland commercial and industrial waste EBIT increased by over 40 per cent on FY15 and 13 per cent organic growth within regional Queensland.
Commenting on the results, Mr Gostlow said: “Revenue from construction based activities from the resource sector, primarily in Western Australia and Queensland, have continued to decline over FY16, so it is pleasing to see the Company’s strategy of diversification into other market sectors and geographic regions has not only countered this downturn but placed the Company in an excellent position to grow its services into the future.
“At the completion of financial year 2017, which will include a full year contribution of Worth and growth in other east coast non resource related markets, revenue from resource related construction activities is forecast to make a minor contribution to the Toxfree Group and the Company will have established a much broader strategic base on which to continue to grow the business.”
Toxfree’s Full Year Results 2016 are on the company website.