The Australian Stock Exchange have received another notification of a substantial change in interest from Linfox. The latest notice shows the percentage of shares in the K&S Corporation owned by Linfox is now closing in on ten per cent.
This follows a previous announcement, published just before Christmas last year, in which Linfox revealed it had bought enough shares in the company to have over eight per cent of the voting power.
K&S have taken a hit due to the downturn in some parts of the economy. It told the ASX last week about the fact, one of its largest customers, Arrium has been placed in voluntary administration. K&S explained it had a number of transport and logistics contracts in place with Arrium in relation to the distribution of finished steel products in the eastern states.
However, the statement did point out, K&S does not have any transport or logistics contracts aligned to the Whyalla steel making operations nor to Arrium’s iron ore mining operations. The company said it is currently in discussions with the administrator of Arrium regarding the ongoing provision of transport and logistics services to the Arrium Distribution Business.
K&S has a number of operations, especially in Western Australia, linked to the resources industry and these have seen lower activity levels as mining activity slows. Falling commodity prices sees miners pulling their collective heads in. This has effected both new projects and current mining operations, both of which are served by K&S.
The single entity, which is K&S, now comprises the various parts of the Scott’s group of enterprises and recently released its half year results. The after tax loss of $88.4 million for K&S, in the six month period up to December 31, is 56 per cent worse than the same result last year, but better than the predicted 75 per cent, as announced in guidance to the stock market in November last year.