Eastland Group Limited Reports Record Profit

Eastland Group Limited Reports Record Profit

Eastland Group Limited (Eastland Group) today announced a record $12.8 million audited net profit after tax for the year ending 31 March, 2013. This is a significant increase from the year ended 31 March, 2012 net profit after tax of $5.3 million, and well ahead of its previous best which was $8.0 million for the year ended 31 March, 2011.

Eastland Group chief executive Matt Todd says it is a great result for a company that has come from humble beginnings.

“In 2003, Eastland Group was a small regional electricity distribution company that was lacking resources, facing numerous operational as well as regulatory issues, and with limited growth opportunities. Since then, Eastland Group has transformed itself into a highly-successful, provincially-based, diversified infrastructure company.

It now has three great businesses operating in the energy and logistics sectors, all run out of Gisborne, and the 2013 result is demonstrative of a well-developed strategy that has been executed effectively over a number of years,” he said.

Fully imputed dividends paid to its shareholder, Eastland Community Trust, for the year ended 31 March, 2013, was $4.6 million as well as interest on capital notes of $2.6 million. Dividends paid were up from $4.4 million the previous year which continues a trend of increasing dividends over the past six years.

The significant contributors to the record net profit after tax were a result of strong operating earnings (EBIT) from its three primary businesses – electrical distribution $9.7 million (2012: $10.5 million), electricity generation $7.4 million (2012: $4.8 million) and logistics (port and airport) $13.1 million (2012: $8.8 million).

Revenue for the group also increased to $69.0 million (2012: $60.8 million).

A loss on discontinued operations of $691,000 was recognised as the company exited its two aviation businesses and focused on its strategy of investing in more asset-intensive infrastructure opportunities.

Total assets have increased to $366.1 million (2012: $353.8 million), 89% of which is currently invested in the Gisborne and Wairoa districts, while equity grew to $181.0 million (2012: $164.3 million).

Eastland Group is a Gisborne-based company investing in and managing a targeted portfolio of businesses – with a focus on the energy and logistics sectors – all of which must be capable of delivering value to its shareholders, customers and stakeholders. It is a proud contributor to the Tairawhiti region, employing 100 people and creating economic value by purchasing locally-source goods and services.

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