• Underlying profit before tax down 4.1% to $23.4 million
• Statutory profit before tax down 3.8% to $23.0 million
• Operating revenue down 9.3% to $383.5 million
• Interim dividend of 8.0 cents per share declared

K&S Corporation Limited (ASX: KSC) has announced its financial results for the half year ended 31 December 2024. The company reported an underlying profit before tax of $23.4 million, 4.1% lower than the prior corresponding period. Statutory profit before tax was $23.0 million, 3.8% lower than the prior corresponding period. Operating revenue for the period was $383.5 million, 9.3% lower than the prior corresponding period. The underlying profit saw continued sound performance by Australian Transport and New Zealand, while the contribution from K&S Fuels weakened due to tightening trading conditions. The Group's net debt increased from $23.8 million as at 30 June 2024 to $45.9 million as at 31 December 2024, with the Group's gearing ratio (excluding lease liabilities) also increasing from 6.3% to 11.3% over the same period. The company has declared a fully franked Interim Dividend of 8.0 cents per share, down from 10.0 cents per share in the prior corresponding period.

The Group presently anticipates that its second half result for FY2025 will be lower than for the prior comparative period, due to the cessation of several customer contracts in the first half of FY2025, the full year impact of customer contract losses in FY2024, and a more challenging trading environment.

While the Group recorded another strong result for the first half of FY2025, providing specific earning guidance for the second half remains difficult. The current higher interest rate environment, coupled with cost-base pressures, costs associated with investment in additional resources, de-stocking by some customers and lower construction activity, present down-side risks to the second half result.