Trucking giant Linfox reports a significant hit to its bottom line in the last financial year due to rising supply chain costs and a poorly performing Armaguard division.
According to financial documents lodged by Linfox’s parent company at the weekend, Asia-Pacific’s largest privately-owned logistics company reveal the business generated record revenue, but profits fell markedly for the second successive year, reports The Australian.
The documents show revenue up by $100m to $3.07bn, but earnings before interest and tax nearly halved to $43.2m in the year to June 30.
The group recorded a net profit of $6.1m compared with $16.8m in 2020, a long way from the $96.4m Lindsay Fox’s empire made in 2019.
A $100m impairment on the Armaguard cash handling business was a significant contributor to the result, said Linfox.
The accounts said: “The impairment charges … arose in the cash logistics Australian cash generating unit … due to changes in market conditions.”
The Australian also reports that the accounts show Linfox receiving $20.7m in government grants during the 2021 financial year.
“Due to the economic impacts of Covid-19, certain governments across several geographies that the group operates have provided financial support,” a note in the report explains, indicating the payments were likely JobKeeper or similar government support.