Toll reaffirms FY guidance

Services provider expects restructure to generate savings of up to $12m from FY15.

Toll Holdings (TOL) has reaffirmed its full-year guidance for fiscal 2014 and expects newly announced changes to its business and management structures to begin generating annual savings in the range of $10 million to $12m from fiscal 2015.

The transport and logistics services provider today announced a number of changes to its business and management structures.

The key changes will see Toll reduce its divisional reporting structure from six divisions to five, and amend reporting lines for a number of business units to better align contract logistics and network-based businesses. The changes come into effect from July 1.

Toll also announced that two long-serving directors, Paul Ebsworth and Wayne Hunt, will leave the group following the restructure. Both will stay with Toll until later in the calendar year to ensure a smooth transition to the new organisational structure, the group said.

The group reaffirmed its expectations for underlying earnings before interest, tax and amortisation (EBITA) for fiscal 2014 to be broadly in line with the previous year, while EBIT is still tipped to come in ahead of the previous year. 

It expects annual savings from the restructure to flow from fiscal 2015, with further details of the costs and benefits of this restructure, along with restructuring and other cost saving initiatives across the group to be outlined in the group's full-year results in August.