The transport services for Lindsay Australia have experienced a surge in recent demand following the publicised collapse of Scott’s Refrigerated Logistics (SRL).
The demise of the cold chain carrier, who went into liquidation last month, has provided Lindsay Australia with additional opportunities.
Scott’s provided refrigerated trucks and warehouses for businesses including supermarket giants Coles, IGA and Aldi.
Initially touted as a potential buyer of the failed Scott’s, Lindsay Australia this week announced an upgrade of guidance for underlying Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the 2023 financial year.
The revised range is now expected to be between $85 million and $90 million, up from the range of $68m to $71m announced at its AGM held on 4 November 2022.
Q3 trading has been navigated without material adverse weather events.
The update is based on the strength of the Q3 trading results, along with a positive Q4 outlook.
The increased demand comes at a time of already tightening supply chain after the continued exit of smaller operators over the past two years.
The company said it had been able to accommodate the increased demand through its improved road and rail equipment utilisation; acquisition of equipment under the FY2023 growth capital expenditure plan; and acquisition of selective Scott’s equipment predominantly comprised of rail assets.
“Lindsay is well-positioned to meet the increased demand for our transport services following the unfortunate collapse of SRL,” said Lindsay Australia CEO Kim Lindsay.
“Our positioning and agility, including the acquisition of new equipment and the integration of SRL assets, have enabled us to expand our operational capacity, maintain customer service levels and deliver strong financial results for FY2023.”