Sunday, 23 March 2014

MaxiTrans builds muscle in trucking industry

http://www.smh.com.au/business/maxitrans-builds-muscle-in-trucking-industry-20120326-1vuo5.html

o   BALLARAT truck trailer and parts supplier MaxiTrans' $20 million buy of Gladstone-based Queensland Diesel Spares may not be its only acquisition using its spruced-up balance sheet.
o   MaxiTrans' managing director Michael Brockhoff had been so busy yesterday, he had not seen the 8 per cent rise in the group's shares, which closed 3.5¢ higher at 46.5¢ after the deal was unwrapped.
o   Asked by Insider why he was using debt rather than equity - especially given the MaxiTrans share price has gone from 20¢ to 46¢ since mid-2011 - Brockhoff said that having cleaned up his balance sheet in recent times, he had no qualms about borrowing to do the acquisition.
o   QDS has turnover of $40 million a year, compared to MaxiTrans' total of close to $300 million these days. The Queensland group, which is debt free, made $4.5 million before interest and tax on a ''normalised'' basis in the latest year.

o   Brockhoff, having dipped a toe in the water and noting that QDS is predominantly servicing the resource-heavy Gladstone region (it is in Brisbane and the Gold Coast, too), is looking to see what gaps he can plug in his group's national footprint. No doubt Queensland, and Western Australia, will continue to be on the radar.

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