Tox Free reveals flat result

Nedlands-based waste management company Tox Free Solutions has delivered a flat profit result, with revenue up 10 per cent and a 42 per cent rise in its final dividend payout.

Tox Free, which supplies its services to a number of producers in the Pilbara, including Chevron at the Gorgon LNG project on Barrow Island, posted a net profit of $23 million for the financial year, with revenue up to $407.3 million.

It also declared a final dividend of 4.5 cents, fully franked, to bring its total dividend to 8.5 cents.

Managing director Stephen Gostlow said it had been a challenging year with the market the way it was, and expected current conditions to persist for the next year.

“There are a number of key drivers including increased costs of landfill, more stringent regulation and community environmental awareness that support growth in our sector,” he said.

Mr Gostlow said there were several industries and regions in the country where the company was forecasting growth.

“In the coming years, Australia is expected to increase its volume of iron ore and coal exports considerable, and the number of LNG production facilities will increase from seven to 20 over the next three years,” he said.

“In diversifying our revenue streams across multiple sectors and providing total waste management solutions we believe Tox Free is well placed to continue to grow our business over the long term.”

Mr Gostlow said the board and management team had implemented a number of initiatives aimed at increasing revenue, reducing costs and strengthening the company’s service offering, through the introduction of new technologies, complementary services and treatment of a broader range of waste materials.

Tox Free shares closed 3.5 per cent lower to $2.72 each.