Profits at the logistics group, which sold its Global Express division to Allegro Funds a year ago, were boosted by a lower loss on discontinued operations, which dropped to $131 million down from a $942 million loss a year earlier.
The company also cut a broad swath of costs, including maintenance, energy, property, finance and operational expenses.
The annual report revealed that Japan Post’s guarantees over Toll’s external debt facilities, which were due to expire at the end of June 2022, have been extended another year to “a maximum date” of June 30, 2023.
Toll’s uncommitted bank facilities have been extended to the same date. The company had undrawn debt facilities of $570 million at the end of March, down from $882 million a year earlier.
Toll’s needs the guarantees because its liabilities still exceed its assets by $2.8 billion, reflecting a net asset deficiency of $958.4 million.
Toll said that it continued to have strong support from Japan Post. “In line with Japan Post’s strategic approach to debt management, Toll maintains a high proportion of short-term debt,” a company spokeswoman said.
“All Toll’s banking facilities are guaranteed and are being renewed without incident as they expire.”
The accounts also showed that Toll secured $72.2 million in commercial settlements, mostly related to payments on cyber insurance policies following two big malware attacks in 2020.
The company has not disclosed the total cost of the cyberattacks.
Toll’s focus after the sale of its Global Express operations is to become “the pre-eminent Asia-Pacific logistics provider” focusing on its contract logistics and freight forwarding businesses, according to its annual report.
The logistics group wants to switch status from being a public company to a proprietary company, Toll Holdings Pty Ltd, as it orientates itself towards Asia.
Public companies need to have at least two out of three directors living in Australia, as well as a secretary. But a proprietary company only needs to have one director living in Australia.