Australia’s largest manufacturer and supplier of semi-trailer equipment MaxiTRANS (ASX:MXI) saw significant gains in revenue and profit for H1 FY21 thanks to continued improvements in manufacturing efficiency and quality metrics.
In its H1 FY21 results released earlier today, MaxiTRANS reported a favourable net cash position of $2.8m improved by $14.9m from a $12.1m net debt windfall at the end of FY20.
This time around, the Company also reported Underlying Net Profit before tax (NPBT) of $8.3 million, indicating a shift towards positive territory following an underlying net loss before tax of $1.2 million in H1 FY20.
Overall revenue was up 12.9% from pcp due to stronger volumes, with its Trailers division particularly exhibiting significant gains in Q2 FY21.
MaxiTRANS’s two complementary businesses both enjoyed gains, highlighting recovery from COVID-19 challenges sooner than expected.
Trailer Solutions experienced a revenue increase of 21.4% (total $127 million), while MaxiPARTS’ revenue increased by 8.7% or $5.5 million (total $69 million).
Trailer Solutions increases were primarily driven by increased demand from food & grocery customers, and a strong agricultural season, as well as an improvement in the general freight market.
The Trailers business order bank, however, is currently restrained by the Company’s ability to recruit and train manpower to fulfill current orders.
“Management’s immediate focus is recruiting skilled labour to increase production at all key manufacturing sites,” the company said in a separate release.
On the flip side, MaxiTRANS’s transition to its Carole Park facility in Ipswich, QLD has resulted in some one-off transition impact costs.
Nevertheless, the company claimed that relocation will generate manufacturing efficiencies of +$2.3m pa while boosting product portfolio flexibility over 2-3 years.
“The Queensland Carole Park facility is expected to deliver greater capacity to support our Queensland and NSW customers as we head into FY22, which will also provide benefit in improved margins without the one-off start up related costs that were incurred in FY21.”