Kelsian Group (ASX:KLS) has reported its half year results ended December 31, 2022, with an underlying Net Profit After Tax of $26.5M, up 21.6% reflecting the benefits of its long-term, low-risk government-backed service contracts and a rebound in domestic tourism.

The Group highlighted significant wins including the retention of its current Sydney Region 3 contract and the award of three further Sydney Metropolitan bus regions, and the acquisition of North Stradbroke Island Buses, Horizons West Coachlines, and Grand Touring NT.

Kelisan Group also declared a fully franked interim dividend of 7.5 cents per share and capital expenditure was brought forward to take advantage of temporary full expensing for tax purposes.

The company says the outlook for 2HFY23 is positive due to continued momentum in the rebound of domestic tourism, but is offset by labour constraints, which are expected to ease as migration levels normalise.