Wednesday 19 June 2019
SeaLink Travel Group Limited advises:
SeaLink Travel Group Limited (ASX:SLK or “the Company”) announced today that it expects its underlying net profit after tax (“NPAT”) for the year ended 30 June 2019 will be in the range of approximately $22.0 million to $24.0 million, an increase of approximately $2.4 million to $4.4 million on statutory NPAT of $19.6 million for the year ended 30 June 2018. Underlying NPAT for FY18 was $22.1 million.
During the second half, the Company has experienced softer than expected trading conditions in Sydney and Perth markets, similarly in line with other tourism operators. The Company believes the trading conditions have been impacted by slower growth in inbound international tourism and a subdued overall domestic travel market due to the uncertainty surrounding the May 2019 Federal election.
The Company is pleased to announce that, following a careful review of overall fleet utilisation and future requirements, it has sold two Capricornian vessels to a New Zealand operator for net proceeds of $9.9 million, above the book value of the assets.
Proceeds from the sale of the Capricornian vessels will be applied to reduce net debt and position the Company for future transport and tourism sector acquisitions.
The Company has seen early signs of an improved trading environment, with the performance of its dining and sightseeing operations on Sydney Harbour during the Vivid Festival tracking ahead of last year.
Managing Director Jeff Ellison said: ”Whilst overall results for FY19 are anticipated to be an improvement on last year, particularly with the addition of our Fraser Island operations which are performing strongly, we continue to work on strategies to further improve performance and grow the company. I am personally committed to continuing SeaLink’s growth strategy.”
For further information, please contact:
Jeff Ellison, Chief Executive and Managing Director, 0407 407 123
Andrew Muir, Chief Financial Officer and Company Secretary, 0423 027 745