Mt Gambier, South Australia, based K&S Corporation has reported that its strong trading performance recorded in the second half of the 2011/2012 fiscal year has carried over to the first half of the current financial year.
K&S expects net profit after tax for the first half of the 2012/2013 financial year to be approximately 25 to 30 percent up on the same period in the previous financial year.
The corporation states the anticipated first half result is based on the continuing solid performance of Regal Transport in Western Australia and improved performances by K&S businesses in the eastern states.
K&S Corporation managing director Greg Stevenson said while it was good to see improved performances from its eastern state operations, challenges still remained in its rail and road linehaul businesses due to depressed volumes.
The recently completed acquisition of Bunbury-based (WA) Collare Transport also offers improved earnings for K&S from a comparatively modest outlay and further demonstrates the corporation’s ability to identify quality assets that add value to our business, Greg Stevenson commented.
However, providing earnings guidance for the full year 2012/2013 result remains difficult and K&S anticipates it will have more visibility on trading conditions in the second half by late February 2013.