SeaLink transformation

THE acquisition of the Transit Systems Group earlier this year (TD 16 Jan) has transformed SeaLink Travel Group Limited into an “integrated, resilient international multi-modal transport business,” which has been well placed to weather the COVID-19 pandemic according to CEO Clint Feuerherdt.

SeaLink this morning posted its results for the year to 30 Jun, with a $13.5 million after-tax loss driven mostly by one-off charges associated with the takeover, as well as write-downs of assets in the Marine and Tourism division.

The underlying profit was up 47% on the prior year to $37m, on total revenue of $646.5m.

Feuerherdt said the business was already well on the way to rebuilding its revenue base from domestic travel, but border closures will limit the ability to fully return to pre-COVID levels.

He forecast an ongoing depressed market for Sydney Harbour cruises, touring on Kangaroo Island and Captain Cook Cruises on Perth’s Swan River.

While the tourism operations traded well in the six months to 31 Dec, they were then slammed by the Jan bushfires, particularly on Kangaroo Island, and then further crushed by COVID-19.

The overall impact on earnings has been minimised, with SeaLink businesses negotiating rental waivers, relief from berthing fees, reducing staff hours and accessing JobKeeper payments.

The company continues to invest for the future, including a new 700 guest multi-purpose restaurant dining, bar and private charter “superyacht” which is scheduled for delivery on Sydney Harbour in mid-2021, as well as redevelopment of fire-affected properties on Kangaroo Island.