Group shareholders’ funds increased from $338.7 million at 30 June 2012 to $349.9 million at 30 June
2013. The increase was attributable to profit for the year of $54.6 million offset in part by dividends paid
to shareholders of $32.5 million and other comprehensive expense of $10.9 million. The profit for the
year ended 30 June 2013 was primarily attributable to a net profit of $19.3 million from the sale of the
Group’s investment in McMoRan Exploration Co. (“MMR”) and $27.7 million of investment income from
Knowledge Universe Holdings LLC (“KUH”). The other comprehensive expense for current year was
mainly attributable to the sale of MMR as the value was realized and transferred to profit & loss.
Group total assets of $638.1 million at 30 June 2013 increased by $10.6 million compared to the previous
year end driven by cash distributions received from investments including the sale of MMR, partially offset
by dividends paid to shareholders. The increase in fixed assets resulted from the purchase of rail
equipment and locomotive upgrades at Helm. The decrease in investments mainly arose from the sale of
MMR. The decrease in stocks was mainly due to the disposal of held for sale six-axle locomotives.
Group total liabilities of $256.1 million at 30 June 2013 were $1.5 million lower than the previous year
end. The increase in provision for taxation includes $10.4 million attributable to the sale of MMR during
the current year. This includes a reversal of $6.2 million deferred tax liability recorded at the prior year
REVIEW OF GROUP PERFORMANCE
Group revenue of $168.0 million for the year ended 30 June 2013 was $89.3 million above the prior year
driven by $55.6 million from the sale of the Group’s investment in MMR and an increase in investment
income of $18.9 million which was primarily attributable to a distribution received from KUH of $27.7
million. Revenue from transportation leasing and related activities of $72.1 million was $15.0 million
above the prior year due to the sale of inventory and held for sale locomotives as well as higher railcar
leasing revenue partially offset by a decline in locomotive leasing revenue. Revenue related to the sale of
inventory and locomotive parts increased by $17.5 million over the prior year.
Group operating profit was $71.2 million for the year ended 30 June 2013 compared to a loss of $58.7
million in the prior year, and Group profit before tax was $69.1 million compared to loss of $60.6 million in
the prior year. The improvement in Group profit before tax was driven by $29.8 million from the sale of
MMR, higher investment income and the absence of impairment losses at Helm which was present in the
prior year. The increase in raw materials and consumables are costs associated with the increase in
revenue from the sale of inventory and locomotive parts at Helm. Group EBITDA of $106.7 million was
$52.4 million above the prior year.
Group taxation was $13.8 million compared to a taxation credit of $61.2 million in the prior year. Included
in previous year’s tax credit was a write-back of the Group tax provision of $44.3 million and a tax benefit
of $11.4 million related to the fixed assets and other intangibles impairment losses at Helm.
After taking into account income tax and non-controlling interests, net profit attributable to shareholders
was $54.6 million for the year ended 30 June 2013 compared to $11.9 million in the previous year.
In the opinion of the Directors, no factor has arisen between 30 June 2013 and the date of this report
which would materially affect the results of the Group and the Company for the year just ended.
As a result of continued weakness in the six-axle locomotive leasing market, the Group’s operating
subsidiary, Helm Corporation, is evaluating its entire fleet of six-axle locomotives. Helm remains focused
on overall fleet management and continues to be focused on opportunities for rail equipment acquisitions
primarily in the railcar sector.
The Board has determined that the Company will not be making any new investments, but will focus its
efforts on managing the current portfolio of assets and, at the appropriate time, realizing such assets.
The Board believes that this is the best course of action in the current circumstances, and will enable the
Company to maximize value from the proceeds from any realization of assets and to return the same to
shareholders as appropriate.
The Board of Directors is pleased to recommend a tax exempt one-tier final dividend of 2.0 cents per
share, in respect of the financial year ended 30 June 2013 for approval by shareholders at the next
Annual General Meeting to be convened.