Page 1 of 4

Nicholas Grove is a Morningstar journalist.

Companies covered in this report:

• Toll Group (TOL)
• Caltex Australia (CTX)
• Investa Office Fund (IOF)
• Spark Infrastructure (SKI)

Toll Group records 6pc fall in profit

Toll Group (TOL) has recorded a 6 per cent fall in net profit before one-off items to $274 million for fiscal 2012, the shipping company said on Monday.

The figure was slightly above Morningstar's forecast for a profit of $262.3 million and in line with guidance provided by the company in May 2012.

The company declared full-year dividends of 25 cents a share fully franked, unchanged on the previous year and in line with Morningstar's expectations.

The fully franked final dividend of 13.5 cents a share will be paid to shareholders on 22 October, Toll said.

Sales revenue for the year ending 30 June 2012 rose 6 per cent on the previous year to $8.7 billion, with total operating profit (EBIT) down 6 per cent to $411 million.

Operating cash flow for the year rose 7.1 per cent to $673.4 million, the company said.

Toll said its balance sheet remains strong, with net debt to net debt plus equity at 29.3 per cent ensuring sufficient balance sheet capacity to fund planned growth initiatives.

Morningstar senior equities analyst Ross Macmillan said there were really no surprises in the result, given the guidance provided by the company back in May.

"It was a very difficult and challenging year for Toll and the new CEO Brian Kruger, who took over from long-time CEO Paul Little in January," Macmillan said.

"The Toll Global Resources business performed strongly on the back of a recent acquisition. Toll Global Forwarding had a disappointing performance, in line with weak global economic conditions."

In a statement, Toll Group managing director Brian Kruger said he was pleased with the company's overall performance given the difficult market conditions.

"An increased focus on returns across our six divisions and our strong financial position mean Toll is well-placed to continue to pursue opportunities for sustainable growth," he said.

While Toll does not expect any short-term improvement in external conditions, recent new contract wins and the company's ongoing investment in fleet, property and IT will help support future earnings growth, Kruger said.

"Toll is well-positioned to continue sustainable, disciplined growth in the years to come," he said.