# LAU - Lindsay Australia



## System (12 August 2010)

Lindsay Australia Limited (LAU) is an integrated transport, logistics and rural supply company with a specific focus on servicing major customers in the food processing, food services, fresh produce, rural and horticultural sectors. The company has an extensive east coast network of 29 stores and depots.

http://www.lindsayaustralia.com.au


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## Country Lad (1 February 2013)

So_Cynical said:


> LAU is a great business, wanted it and watched for a long time...very thinly traded.
> 
> how many LAU trades actually went through today?




45 trades
79% of the trades were buys
  5% were sells
16% were not specified
Total value $107,057

Cheers
Country Lad


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## piggybank (26 August 2013)

One for investing over the loooooong teeeeerm.............


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## So_Cynical (27 August 2013)

piggybank said:


> One for investing over the loooooong teeeeerm.............
> 
> View attachment 54048




Dude seriously, timing.

Buy the GFC low or the lows of 12 and 22 months ago and your laughing....great stock if you entered at those lows.


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## Country Lad (27 August 2013)

Going back to 2005 for a pattern is probably stretching it somewhat.  A more appropriate view of the P&F chart would be back to 2010.


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## piggybank (3 October 2013)

Up to 30c today.


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## Telamelo (9 August 2016)

LAU due to declare a fully franked dividend soon... interestingly, selling pressure/supply has all but dried up under 50c it seems (as recent trading volumes indicate).

Weekly chart looks quite bullish so once 52c hurdle is cleared.. then would expect share price to kick on higher imo

Please dyor as always.. Cheers tela


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## The Triangle (25 January 2020)

A little disappointed in myself for not buying when the price was low 30s - Although liquidity is impossibly low.  Not sure if the Fires would have impacted Lindsay, but growth, cash-flows, dividends are all looking very good over past three years.  They paid down a good portion of debt in FY19 and continue to invest in expansion.  Only thing to keep an eye on is making sure the capex spend is generating acceptable returns - which history has shown is not really a worry for LAU.


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## The Triangle (22 February 2020)

Revenue Up
Profit Up
Assets Up 
Cashflow Up
Bank Debt Down
Dividend flat

Bushfires look like they had a negligible impact.  Forecasting a 10% EBITDA growth.  Not bad at all.  If I had to point to a negative it would be the costs climbing nearly the same as the revenue.


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## Dona Ferentes (11 March 2020)

The Triangle said:


> Revenue Up
> Profit Up
> Assets Up
> Cashflow Up
> ...



Margins are skinny. Always some independent looking to undercut and take a back-load for cost


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## Dona Ferentes (26 June 2020)

Following the onset of the COVID-19 pandemic many product lines and supermarkets experienced a significant surge in consumer activity, particularly during March 2020. This led to increase in demand for certain freight activities. These market conditions have now abated, and there has been a material flattening and decline in demand experienced during May and June 2020 resulting in a significant reduction in freight tasks. This flattening generally coincides with an end to COVID-19 related panic buying for many products, and as widely reported a decrease in economic activity and conditions within the domestic economy. 


> Accordingly, the Company advises today it has amended its FY2020 earnings guidance from underlying EBITDA growth of around 10% to underlying EBITDA growth of around 5%.









................ Earnings ($) ............................and ............ Return on Equity (%)

Market Cap about $100 million; PE is undemanding at 12. Ticking along, but gearing is high


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## The Triangle (25 January 2021)

Release out today - LAU is saying 26-27 $m underlying EBITDA for H1. 2020 was 40.4 million, 2019 was 37.7 million. Operating cash conversion on this has been around 95%  - They've done quite well here!

Who knows what H2 will bring, but I’m banking on it being better than H1 as covid in Australia looks to be more or less under control. I’m quite surprised this is only at 35 cents. Years and years of capex investment is paying off and they smartly held back the dividend last half to only ½ a cent. I think they were only planning to purchase containers this half, so I wouldn’t expect capex to exceed 2-3 million dollars. Will be very interested in seeing financing cash flows.  

I do worry when a company puts out a random positive announcement shortly before either quarterly or half yearly reports are due out. It’s usually something to lessen the pain of an unexpected blow. Would have preferred LAU to also give an EBIT and dividend forecast in this announcement – although in fairness they do often speak in terms of just EBITDA.  I picked up a few more shares today.


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## So_Cynical (26 January 2021)

Road transport, hell pretty much all transport is super low margin and capital intense. 400 odd million in revenue and just a crappy 6 or 7 million in profit.


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## IrishDigger (26 January 2021)

I notice the share price hasn't moved much over the years; I hold BKI who in turn holds a fair swag of LAU and this my interest in your post.


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## galumay (26 January 2021)

So_Cynical said:


> Road transport, hell pretty much all transport is super low margin and capital intense. 400 odd million in revenue and just a crappy 6 or 7 million in profit.



Tough way to make a buck I reckon. Probably better looking for businesses that supply things that the capital is spent on! NTD springs to mind!


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## divs4ever (18 February 2022)

Lindsay Delivers H1 FY22 Revenue, Profit and Dividend Growth

Highlights:
• Strong demand for Transport and Rural services helps deliver H1 FY22 underlying1 EBITDA
growth of 20.2% to $31.4 million.
• Rail growth strategy remains on-track with the addition of 50 refrigerated containers in
H1 FY22, with 350 refrigerated containers in operation entering H2 FY22.
• Lindsay remains well positioned to take advantage of future growth opportunities across both
Transport and Rural segments to deliver positive returns on capital.
• Lindsay Board of Directors have declared an interim unfranked dividend of 1.4 cents per
ordinary share (up 16.7% from H1 FY21: 1.2 cent per share fully franked).
BRISBANE, 18 February 2022: Integrated transport, logistics and rural supply company Lindsay Australia Limited
(ASX: LAU, "Lindsay" or "the Company") is pleased to announce its financial results for the half-year ended
31 December 2021, delivering growth in revenue, profit and dividends.
Financial Highlights
The Company increased its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) by
20.2% compared with the prior comparable period (pcp) to $31.4 million on half-year revenues of $273.9 million
(+25.3%).
Similarly, underlying profit before tax (PBT) benefitted from the strong revenue growth and cost controls from both
divisions, increasing $4.5 million (+44.0%) from H1 FY21 to $15.0 million. A reconciliation of the underlying results
is provided in the tables in the Interim Financial Report.
Lindsay ended H1 FY22 with $17.2 million in cash and a rolling 12-month net leverage ratio2 of
2.04 (H1 FY21: 2.38), strengthening the balance sheet and providing flexibility and capacity to fund the Company’s
growth objectives.
The Company's strong results have allowed the Board to declare an interim unfranked dividend of
1.4 cents per ordinary share (H1 FY21: 1.2 cent per share fully franked), payable to shareholders on 8 April 2022,
with a record date of 25 March 2022.
1 Underlying operations defined in this release are the Group’s reported financial results as set out in the Interim Financial Report, adjusted for significant items
that are non-recurring or items incurred outside the ordinary operations of the Group and excludes the impact of AASB 16 Leases. Refer to H1 FY22 Interim
Financial Report for a detailed reconciliation of underlying operations.
2 Net leverage ratio = Net debt/underlying EBITDA. Net debt excludes property and other lease liabilities relating to AASB 16 Leases.
ABN 81 061 642 733
152 Postle Street
Acacia Ridge QLD 4110
Locked Bag 2004
Archerfield Qld 4108
P: 07 3240 4900 F: 07 3054 0240
www.lindsayaustralia.com.au
Strategic and Operational Highlights
The Company’s Transport and Rural divisions remained fully operational throughout H1 FY22 as an essential service
provider in the nation’s food supply chain, navigating and meeting the challenges posed by COVID-19. Lindsay
remains focused on delivering best-practice safety and compliance policies to ensure employee, customer, supply
chain partner and community stakeholder well-being remains its highest priority.
Lindsay’s growth strategy remains focused on diversifying its range of products, services and geographical reach to
continue meeting its customers evolving needs. The Company is implementing this strategy by investing in
capacity, facilities, equipment, technology and cost efficiency initiatives, ultimately delivering value for customers,
employees and shareholders.
The Company’s H1 FY22 underlying EBITDA result was driven by strong revenue growth from both Transport and
Rural services. Transport continues expanding and diversifying its customer base and increasing its refrigerated rail
capacity through new equipment additions. Rural continues to diversify its product mix and focus on high growth
regions and expanding its sales team in established and expanding regions.
In Transport, executing the organic growth strategy to have 400 rail containers in operation by 30 June 2022
remains on-track. Transport had 350 containers on 31 December 2021, after acquiring 50 during the period. The
division plans to take delivery of another 50 refrigerated containers in H2 FY22.
Transport revenue (including external and inter-segment) increased $42.7 million to $195.4 million (+28.2%).
Transport revenue growth was driven by increases in operational capacity from rail, strong demand for road
services and increases in fuel recoveries.
The uplift in Transport revenues delivered an underlying EBITDA segment result of $34.8m which was $5.1m
(+17.3%) above the pcp.
In Rural, the strategy to diversify into new regions and build on the platform set in previous years continued in H1
FY22. Like for like branch sales increased $10.1 million (+14.6%), while new branches delivered
$3.5 million revenues for the half-year.
Rural delivered an underlying EBITDA segment result of $5.1m which was $1.4 million (+37.7%) above the pcp.
The Fresh Logistics division, which COVID-19 had materially impacted in previous financial years, saw strong
revenue growth from domestic volume increases and substantial sea freight volumes. Fresh Logistics external
revenues for the half-year returned to pre COVID-19 volumes.
ABN 81 061 642 733
152 Postle Street
Acacia Ridge QLD 4110
Locked Bag 2004
Archerfield Qld 4108
P: 07 3240 4900 F: 07 3054 0240
www.lindsayaustralia.com.au
Commentary on H1 FY22 Results
Lindsay Australia CEO, Kim Lindsay, said:
“The Group has been presented numerous challenges in H1 FY22 and it is a testament to our dedicated employees
and supply chain partners that we have been able to navigate the challenges and deliver a solid H1 FY22 result.
We continue to see strong demand for all of the Group services, delivering revenue growth across all divisions. A
strong balance sheet positions us well to take advantage of growth opportunities and delivering ongoing success for
the Group.
We remain proactive in continuing to diversify the Group’s services and geographical reach to mitigate seasonality
risks for the Group.
Subject to potential COVID-19 related impacts and unforeseen weather events, we anticipate the strong demand for
road, rail and rural services to continue for H2 FY22.”
Release authorised by the Lindsay Australia Board of Directors.


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DYOR

i hold LAU

hmmmm better than i expected , but this isn't usually excitement central , either


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## The Triangle (19 February 2022)

divs4ever said:


> Lindsay Delivers H1 FY22 Revenue, Profit and Dividend Growth
> 
> Highlights:
> • Strong demand for Transport and Rural services helps deliver H1 FY22 underlying1 EBITDA
> ...



It's another interesting small cap which had a great headline half.  4.1 CPS and 1.4 in dividends.    I'll definitely hold though the dividend and look to keep these for a while longer.   Surely this will be mid 40s by next week. 

There's +$20 million shift in receivables vs payables, so I do expect next half (FY) results to be a cash bonanza as well.   Given the shortage of truck drivers I do wonder if LAU has been able to capitalise on the supply and demand numbers to ratchet up prices or has growth come from the capital spent over the past 2 years?   

Their subcontractor costs are going up considerably which was about the only concern I had about these results.


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## divs4ever (19 February 2022)

sadly i expect costs to rise notably  across most businesses 

 for example recently i have been preferring EVN over NST ( but have bought extra of both ) because EVN is looking like they are angling for better cost efficiencies

 i will continue to hold LAU ( and rival KSC ) because i want exposure to the sector  but bizarrely it is SNL that is putting in the big gains ( i hold SNL as well )

 trucking/transport is a capital intensive business  , BUT after the Canadian Freedom Convoy they might be held in the respect they deserve ( even if i did annoy the crap out of some  when i worked dispatch docks )


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## The Triangle (19 February 2022)

divs4ever said:


> sadly i expect costs to rise notably  across most businesses
> 
> for example recently i have been preferring EVN over NST ( but have bought extra of both ) because EVN is looking like they are angling for better cost efficiencies
> 
> ...



I just missed that this dividend is unfranked.   1.4 cents then is no different to the 1.0 cent fully franked from last year.  Oh well.  Still a good result.


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## divs4ever (21 February 2022)

Last Price (AUD) $0.460

Today's Change Up $0.070 (17.95%)

 WOWEE didn't the market like that report


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## The Triangle (17 August 2022)

Annual numbers are out.  Not too shabby,

Revenue up to $553 million (+25%)
EPS up to 6.4 cps
Dividend (unfranked) up to 1.8 cps (around a 50% payout ratio)
Net Assets up $14 million
Lease Liabilities down,
LT debt slightly up ($22 million)

And cashflow adjusted for trade receivables is considerably higher - Looks like they've got about $23+ million to collect on vs last year.  Hopefully there aren't any bad debt issues here.   This has been a tough year for the economy in general, so pretty happy to see results like this.    They definitely could have paid a larger dividend so I do expect something nice come the half year results. 

Won't be surprised to see this hit 20 year highs in the next few months.


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## The Triangle (6 November 2022)

Underlying EBITDA for FY22 was $60 million, from Friday's AGM slides, LAU is maintaining an optimistic guidance target of +15% growth to $68-$71 million in underlying EBITDA with one quarter now done and dusted.  EBITDA is an accounting witchcraft number which tells us nothing in a vacuum - however since LAU has not made any significant changes or investments in the last few years, I think we can reasonably expect Interest, tax, depreciation and amortization to be very similar to previous years.







I was concerned that the AGM would have some bad news and the illiquid share price would get smashed, so I dumped 20% of my holding and depending on the SP over the next few weeks and months I may look to dump some more and end up with 50%.  LAU has done what I wanted it to do and I'm happy to reduce my holding a little.   Need the $$$ to lose on junior resources roulette.


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## divs4ever (6 November 2022)

Substantial Shareholders List​
NAMESHARE HOLDINGSHARES HELD (%)Washington H Soul Pattinson and Co Ltd68,868,09022.90%Mizikovsky Group49,509,41016.50%

 SOL has been reducing  in recent months  down to 19.10% ( according to Commsec )

 am a bit of a fan of both major holders

 my av. here  is a little below 41 cents ( currently up 57% )

 this is ' a bottom-drawer  ' stock  for me

 but don't be complacent  i see plenty of industry headwinds  ( although i am liable to wait for sub 38 cents before CONSIDERING  topping  up  )


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