Kailis posts profit after tough decade

Fremantle-based seafood wholesaler and jewellery manufacturer MG Kailis Group has achieved its second consecutive year of profits, after a decade of losses, despite a 14 per cent fall in revenue.

The company’s financial report for the year to June 30, recently filed with regulators, shows revenue of $69.9 million, down from $80.8 million in the previous financial year.

Profit was down 22 per cent to be $2.6 million, including a good portion of accumulated tax losses.

Executive chairman George M Kailis told Business News the business had undertaken a major change in direction since December 2013.

“We’ve been on a five-year path to improve the business, cut our overhead costs (and) focus on the important drivers of profit, Mr Kailis said.

“We’ve been chugging away.

“It’s led to improved results in the past two years, which have been great.”

He said the focus had been on long-term businesses, rather than peripheral interests.

“We’d (previously) had a number of bad seasons, a few businesses that we were in had been exited.” Mr Kailis said.

The report said positive cash flow had been used to generate dividends, repay debt and reinvest.

Mr Kailis said one major move was refitting a prawning vessel to improve asset utilisation.

“We refitted one of our boats so it can be a dual prawn trawler and fish trawler, and we've been using that in the past six to eight months to support our fishing activities in the north,” he said.

Both the prawning and fishing businesses were performing well.

Queensland lobster operations delivered reduce revenue due to seasonal variability, which Mr Kailis said reflected the alignment of the fishing season with financial years.

The report showed the company purchased buildings it had previously leased in that state.

MG Kailis reported having 179 staff and assets of about $84 million, with 15 subsidiaries.

The company was founded in 1962 by Michael Kailis and his wife Patricia Kailis.

Son George M Kailis serves as executive chairman while his brother Alex Kailis is executive director.
KPMG partner Matthew Beevers signed off as auditor.