24/05/2016 - 15:10

K&S Corp hit by downturn

24/05/2016 - 15:10

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Trucking and logistics company K&S Corporation expects to make little, if any, profit in the second half of the 2015-16 financial year after being hit by difficult conditions across the country.

K&S Corp hit by downturn

Trucking and logistics company K&S Corporation expects to make little, if any, profit in the second half of the 2015-16 financial year after being hit by difficult conditions across the country.

The company said it anticipated an underlying profit before tax of between $5 million and $6 million for the year to June 2016.

In the first half of the financial year, it posted an underlying profit before tax and significant items of $5.1 million.

That implies the second-half result will be around break-even or a very small profit.

K&S, which has substantial operations in Western Australia, cited the severe downturn in the WA economy and the resources sector more broadly as one contributor to its weak result.

It also cited the structural decline of domestic manufacturing and reduced profitability of several eastern states operations.

The company said it was highly likely it would also need to take up a bad debt provision to cover a significant portion of its exposure to Arrium of $12.8 million.

K&S expanded its presence in WA over the past decade through a series of acquisitions, including Regal Transport Group, Pacific Transport, Collare Transport Group and Brookes Transport.

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