Fliway, the NZX listed freight forwarder, and logistics specialist says the loss of a major client’s account will impact revenue and earnings in the next financial year.
BusinessDesk reports the unnamed customer contributes between 4-5% of Fliway’s total income and is likely to account for about 10% of the company’s earnings before interest, tax, depreciation and amortisation in the year ending June.
The major revenue earner for Fliway is consolidating its transport and logistics business with a rival following a competitive tender process. The work is expected to transition from August 2016.
“This is a material customer for Fliway and, while there will be no impact on the FY16 results for the 12 months ended June, at this stage there is expected to be a significant impact on the FY17 revenue and earnings as a consequence of this customer loss,” says the company.
“Targeted areas of cost reduction will be considered in order to minimise the financial impact of this customer loss, but only where there is no impact to service for our clients.”
The company says it is “very disappointed” to have not retained the business, and will continue seeking to win contracts with new customers.
