Half Year Results FY23

Highlights

  • Solid result reflecting benefits of long-term, low-risk government-backed service contracts, providing consistent predictable earnings base;
  • Rebound in domestic tourism led to strong growth in Marine and Tourism business, contributing to 6.2% growth in Group Revenue to $678.3 million;
  • Contract indexation mechanisms effectively hedge inflation for majority of bus businesses;
  • Underlying EBIT (adjusted for one-off costs associated with M&A) grew by 17.8% to $44.9 million despite inflationary environment;
  • Underlying NPAT increased by 21.6% to $26.5 million;
  • Continued strong balance sheet and cash flows supports the fully franked interim dividend of 7.5 cents per share, (1HFY22: 7.0 cents per share);
  • New bus contracts won in Sydney including retention of existing Sydney Region 3 contract demonstrate leadership in operational excellence, decarbonisation, and efficiency; and
  • Acquisitions of Starship Vessels and North Stradbroke Island Buses and agreements to acquire Horizons West Coachlines and Grand Touring NT during the period.

Full Year Results FY22

Highlights

  • Kelsian performed well in challenging conditions, continuing to diversify its resilient contracted earnings base
  • Underlying EBITDA increase of 9.3% on prior year to $183.1 million, reflecting the strength of the business and defensive contracted model
  • Total revenue of $1,324.7 million, up 12.9% on the prior year
  • International Bus outperformed expectations following the London restructure and doubling of the Singapore contract base
  • Australian Bus performed in line with expectations with an increased EBITDA and margin expansion
  • Marine & Tourism showed improvement late in the period following impacts of border restrictions, travel uncertainty and COVID-19 over the Australian summer
  • Cashflow and Balance Sheet remain strong, positioning Kelsian for growth; Balance Sheet capacity was utilised to fund strategic acquisitions, asset renewal and fleet investment
  • Award of up to a 25-year contract to continue to operate ferries to Kangaroo Island
  • Reinforced market leading position as Australia’s largest operator of zero emissions buses with 58 battery electric vehicles in operation, a further 59 on order and four hydrogen fuel cell buses to be deployed
  • Change of corporate name from SeaLink Travel Group Limited to Kelsian Group Limited
  • Inclusion in the ASX 200
  • Final dividend of 9.5 cents per share, an increase of 0.5 cents over the prior