Business Description:
Transpacific Industries Group Ltd (TPI) provides integrated industrial cleaning, recycling and total waste management solutions to customers across Australia and New Zealand. It is also a key player in the domestic heavy-duty commercial vehicles industry.

Strategy Analysis:
After growing rapidly prior to the global financial crisis via acquisitions, TPI is now a company in transformation. FY10 was a year of recapitalisation and consolidation. FY11 was a year of restructuring and positioning for TPI to take advantage of future opportunities once economic conditions improve. In FY12, the strategic emphasis will be improving profitability and reducing debt. The company will need to rapidly reduce operating costs in the Manufacturing business to ensure the business achieves solid positive cash flow in FY12. The company has outlined a five point plan for addressing the high debt level. Transpacific Industries Group reported a net loss of $296.54m for the year ended 30 June 2011. The 2011 result was affected by a non-cash write-down on the carrying value of non-current assets of $346.8m (before tax). The majority of this impairment charge relates to: the NZ division - $181.5m; Victoria Landfill - $95.2m; and the Manufacturing division - $60.4m. Revenues from ordinary activities were $2.18bn, up 5% from last year. Diluted EPS was (30.9) cents compared to 6.6 cents last year. Net operating cash flow was $253.99m compared to $289.84m last year. No dividend was declared. The group continues to focus on debt reduction and positioning itself to meet upcoming debt maturities.