SeaLink’s Jeff Ellison to retire after 27 years; record sales but costs push profit down
NATIONAL cruise and ferry services operator SeaLink remains “excited about its outlook” after reporting a fall in underlying net profit despite record sales and announcing the retirement of its long-time managing director Jeffrey Ellison.
NATIONAL cruise and ferry services operator SeaLink remains “excited about its outlook” after reporting a fall in underlying net profit despite record sales and announcing the retirement of its long-time managing director Jeffrey Ellison.
SeaLink’s underlying net profit after tax fell 7 per cent to $22.1 million to the end of June, compared to $23.8 million in the previous financial year.
Statutory net profit, which included costs related to its Fraser Island acquisition and start-up costs related to major new ferry routes, was down 18 per cent to $19.6 million.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in six per cent lower at $46.5 million.
The group said sales were at a record $209.4 million, up 4.0 per cent from $201.4 million.
“SeaLink is positioned for strong growth in earnings in 2019,” the company said, with the full year impact of the Fraser Island acquisition; the newly awarded ferry service to Bruny Island, anticipated improved profitability on the Barangaroo and Rottnest Island services and expected higher domestic and international visitation.
“We remain excited about the outlook for further organic tourism and transport growth opportunities throughout Australia,” SeaLink said.
The group said it has also started a national and international executive search to replace Mr Ellison, who has been at the helm for 27 years and intends to retire at next year’s annual meeting in October.
Mr Ellison will remain as chief executive until such time as a successor is appointed to ensure a smooth transition.
“I firmly believe that now is the time to give a new generation of leaders the opportunity to build on the strong platform that now exists,” Mr Ellison said.
“The organisation has transitioned from a small privately owned South Australian based business to ultimately becoming a top 300 publicly listed company on the ASX.
“The direction and strategy of the organisation is established as an integrated provider of transport and tourism experiences,” he said.
SeaLink chairman Andrew McEvoy highlighted Mr Ellison’s “remarkable career, steering the company through private ownership, culminating in the IPO of the business in 2013”.
“Under his leadership, SeaLink has become Australia’s biggest tourism and transport operator with operations all around the country.”
“He will be leaving the company with great profit growth prospects and balance sheet, a very capable and focused executive team and strong momentum in the business,” Mr McEvoy said.
Heidrick & Struggles has been appointed to find a new leader for the group.
Commenting more broadly on the results, the group which operates the Kangaroo Island ferry services, said tourism operations in NSW also experienced some softness in demand growth in line with national inbound tourism statistics in the second half of 2018.
In SA, the group saw a strong demand for its PS Murray Princess services and growth in passenger volunes on the KI ferry service. Fledgling rival operator KI Connect, which started a passenger ferry service to the island in June remains out of action following an accident in the same month.
Lunch and dining operations in WA remained subdued, albeit with signs of stabilisation in the second half of 2018.
Corporate expenses increased $0.5 million as part of the company’s strategy to develop an enhanced national sales and marketing.
SeaLink currently employs more than 1600 staff nationally, operating in NSW, Queensland, Northern Territory, WA and SA with a fleet of 77 vessels and 60 coaches.
SeaLink will pay a partly franked final dividend of 8c per share on October 3.