Ferret's Stock to Watch: MAXITRANS INDUSTRIES LIMITED 07:25, Wednesday, 25 August 2004
A COMPANY ON THE FAST TRACK WITH TRANSPORT TRAILING SOLUTIONS
Sydney - Wednesday - August 25:(RWE) ************************************
OVERVIEW ********
You could well say MaxiTRANS is going places - fast.
It has an insatiable appetite for taking over companies that fit into the group and show good profits.
It claims the title of Australia's largest supplier of road transport trailing equipment and solutions.
The company has a 50 per cent stake in a panel manufacturing joint venture with the Chinese (Yangzhou Maxi-Cube Tong Composites C Ltd) which has achieved record pretax earnings for the year with a 136 per cent increase.
Yesterday MaxiTRANS Industries reported a peak net profit of $8.82 million for the year to June 30, up 76 per cent.
As a result of the continued improvement in performance the company will pay a final dividend of 2c on October 18, bringing the total dividend paid for the year to 3.5c, a 40 per cent increase.
Revenue rose 36 per cent to a record $160.7 million.
Directors confessed that acquisitions during the year provided MaxiTRANS with an "exciting opportunity" to further diversify into complementary markets within the trailing industry.
At the same time it provided the company with the opportunity to benefit from synergies between its current business operations and the operations of Lusty EMS and Hamelex White.
The new financial year has begun well with the order book remaining strong and the receipt of the largest order the company has ever received in July for more than 130 vans and trailers.
MaxiTRANS will increase its manufacturing capacity during the year, in particular for tippers, so that it is well placed to take advantage of the projected rural recovery and capital infrastructure projects over the next few years.
The company has reached agreement to acquire a 70 per cent interest in an incorporated joint venture which will acquire the Colrain truck and trailer parts business and the Ultraparts and Trail Truck divisions of MaxiTRANS, effective November 1.
The merger of the two parts groups is a "very good strategic fit" and in line with MaxiTRANS's strategy to aggressively expand its parts operations.
The projected cash consideration for MaxiTRANS's stake is $9.6 million.
SHARE PRICE MOVEMENTS *********************
Shares of MaxiTRANS yesterday edged up 2c to 82c. Rolling high for the year has been 95c and low 50c. Dividend is 3.5c to yield 4.27 per cent.
MaxiTRANS focuses on the needs of its customers through specialist capabilities in:
*Engineering Design to achieve durable, high capacity, light weight transport trailing equipment. This provides MaxiTRANS customers with efficient equipment usage, greater payload and resulting higher profits.
* High Volume Manufacture to provide its customers with fast delivery of large numbers of trailers at short notice. This capability equips MaxiTRANS customers with the ability to respond quickly to market demands - whether their need is for an individual unit or a fully-equipped fleet.
* Design and Manufacture of Specialty Trailers that meet the unique performance requirements of customers. MaxiTRANS has the engineering capability to create specialised designs or to modify existing models to suit special customer needs and logistics requirements.
* Ballarat Manufacturing Facility
* Trailer Hire through the wholly owned MaxiTRANS TraileRentals business that operates over 120 trailers nationally. TraileRentals can provide flexible short and long term rental contracts tailored to match freight contract duration - providing a viable, competitive and flexible alternative to purchase.
* Accident Repair and Servicing of all styles of trailers at several locations around Australia. Specialising in the repair of all degrees of accident damage and quality refurbishing and finishing.
* Trailer Finance through highly competitive and innovative MaxiTRANS Finance packages, offering both finance and operating leases and commercial hire purchase contracts.
* MaxiTRANS is the only trailer manufacturer to make its own urethane insulating foam to the appropriate gauges for optimum thermal insulation and maximum load capacity. MaxiTRANS also manufactures fully fabricated FRP/foam sandwich panels for use in manufacturing and for sale to vehicle body builders.
* MaxiTRANS operates a large second hand trailer business, offering its customers competitive trade values - from single units through to complete fleets
* Part sales are available for the complete range of Freighter and Maxi-CUBE trailers, including full panels and body components for major body repair work. The Maxus parts range supplies quality and competitively priced consumables for trailers and trucks.
BACKGROUND **********
MaxiTRANS, is Australia's foremost supplier of road transport trailing solutions.
The Company's operations consist of a complimentary mix of activities centred on the broad needs of road transport operators.
They include manufacture of leading trailer brands, supply and distribution of parts, provision of service and repair support, manufacture of urethane foam and body panels and the sales, rental and finance of new and used trailing equipment.
In 1998 Maxi-CUBE, a company listed on the Australian Stock Exchange since 1994, purchased Freighter Industries to create a group that was subsequently renamed MaxiTRANS.
The acquisition united two prominent transport trailer brands - Freighter and Maxi-CUBE - that had pioneered their sectors of the Australian road transport industry.
In 1996, Maxi-CUBE had established a Chinese joint venture operation with THT, a major Chinese transport equipment manufacturer, to produce fibreglass wall panels.
The joint venture operates under the name of MTC (Yangzhou Maxi-Cube Tong Composites Co. Ltd), with panels sold throughout China and used by MTC in the manufacture of insulated and refrigerated trailers.
This joint venture partnership continues to experience significant growth.
In recent years MaxiTRANS has embarked on a successful strategy to broaden and cement its role as an all-round provider of total transport solutions through acquisitions, joint ventures and partnerships and by undertaking new and complimentary business enterprises.
Principally manufactured in Ballarat (Victoria) and Auckland (NZ), the company's Freighter and Maxi-CUBE products are market leaders, supplying T-Liners, flat tops, container skels, dry freight and temperature controlled vans to Australasia's road freight haulage operators.
Since acquiring the respected Brisbane-based Lusty EMS operation in July 2003, this product range has been broadened to include a selection of aluminium tipping trailers that provide MaxiTRANS with the opportunity to expand its sales in a market segment that is new to the company.
The MaxiTRANS' range provides transport operators with advanced engineering solutions that deliver profits, high resale value and reliability - sold through a network of dealers throughout Australia and New Zealand where parts and service support is also available.
(20min delay)