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Linfox profits hit by Covid costs and cashless trend

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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.

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