Tox Free profit rises 60 per cent

Waste management company Tox Free Solutions has announced a 60 per cent increase in net profit to 21.7 million on the back of a 30 per cent rise in revenue to $369.9 million.

The company announced a final dividend of 3 cents per share, fully franked, bringing the total dividend for the financial year up to 6 cents per share, a 20 per cent increase on the previous year.

Tox Free said it had $16.2 million in cash, with borrowings of $97.5 million, and had repaid $21.4 million in debt over the course of the year.

“The company views the results as an excellent achievement at a challenging time when the Australian economy is in a period of transition as the completed capital projects in the mining and oil and gas sectors come to an end and many of the other industry sectors in Australia, such as civil infrastructure, continue to remain subdued,” Tox Free said in a statement.

“Within our waste services division the main business units comprise the Pilbara, Kimberley and Darwin, Gorgon and Wanless.

“The Pilbara and Kimberley business performed very well as we continue to see high levels of activity from both the iron ore and oil and gas sector.”

Tox Free won a contract renewal with Rio Tinto to provide waste management in February, building on its four-year partnership with the mining giant.

It followed a contract won in January with Rio to provide waste management for Rio’s Dampier Salt operations in Port Hedland and Dampier.

It also secured a contract with Titan Energy to provide waste collection and water services for drilling and camp activities at various locations in Queensland’s Surat basin.

“In diversifying our revenue streams across multiple sectors and providing total waste management solutions, we believe we are well placed to continue to grow our business over the long term,” the company said.

Tox Free’s share price closed out the week nearly 3 per cent higher at $2.82 per share.