Move Logistics Group has slipped further into the red, posting a net loss after tax of $48.1 million for the year to June 30.
The result for the NZX and ASX-listed transport operator compares to a net loss of $7.2m on the year prior and included pre-tax non-trading adjustments of $19.7m.
It includes non-cash impairments of $17.3m on the carrying value of the Atlas Wind vessel which is being held for sale and goodwill in the warehousing business. Excluding these and other non-trading costs, normalised EBITDA was down 41% to $27.6m.
Revenue was down 13% year-on-year to $301.7m as a result of lower market and customer activity.
Move chair Julia Raue says the results “are clearly disappointing”.
“We acknowledge that we were too slow to react to the recessionary environment which has been stronger for longer than expected, and reduce costs to match activity levels.
“We are now moving urgently to drive change and improvement. We have engaged with independent advisors to ensure we have validated the challenges and opportunities within the business as well as the external factors that have impacted Move’s performance.
“A comprehensive change programme has been developed to replace Project Blueprint and experienced executive Paul Millward has been appointed to lead the turnaround.
“We are moving ahead with a refreshed board and leadership team and are united in our focus to execute the change programme with urgency,” Raue says.
The board says its priority is to restore positive adjusted net operating cashflow inclusive of rent and lease payments which posted a loss of $5.1m in FY24.
Net debt increased by $1.4m to $17m, with total bank debt of $36m.
“We are moving at pace to recalibrate the business, adapting it for current market conditions, and making it more efficient and fit for the future.
“We expect substantial progress over FY25 to restore cashflow and improve earnings, with initial results to be seen from 2H FY25.
“Costs associated with the change programme will impact in FY25,” Raue says.
Year-to-date, Move’s shares are down 50% and currently trading at NZ$0.27 per share.
