Move Logistics Group is reporting an improved financial result for the six months to December 31, as cost reductions and operational efficiencies from its transformation plan take effect.
The NZX-listed transport firm narrowed its net loss after tax (NLAT) for the period by $1.8 million to $8.9m.
Total income reached $150.7 million, down 5% on the prior year but ahead of the second half of 2024.
Normalised earnings before tax (NEBT) improved to a loss of $6.1m, halving the loss from a year ago, while second-quarter earnings were the strongest in 18 months, up 48% on the first quarter.
Operating expenses fell by $16.8m, driven by reductions in workforce and transport costs, with further annualised savings of $3–$4m targeted for the second half. Gross margins expanded to 29%, the highest since the first half of 2023.
Chair Julia Raue says the company’s financial performance is improving as its turnaround strategy progresses.
“The board and management team have been laser-focused on the execution of the Accelerate transformation programme. As a result, our financial performance is improving, renewed funding arrangements are in place, we have strengthened Move’s leadership team and we continue to win business as a result of our team’s commitment to customer service excellence.
“There is still much work to do, and we have a clear plan of action in place as we build a platform to deliver long-term, sustainable value for our shareholders,” Raue says.
Chief executive Paul Millward, who was appointed to the role permanently, highlighted major improvements across the business with all units showing improvement apart from warehousing.
“Our priority focus has been on cost reduction, gross margin improvements, and cashflow generation driven by sales-led recovery.
“We have achieved significant milestones in the transformation plan over the last six months as we have rightsized our network, fleet and assets, significantly reduced our cost base, and appointed experienced new leaders to key GM business roles in freight and warehousing,” Millward says.
“Good momentum is being made, despite the weak economic conditions which have seen customer demand soften. All of our business units are showing improvement apart from warehousing which remains challenged with current weak demand and excess capacity across the sector. A clear plan is in place for the business.”
Freight operations delivered its best quarterly normalised earnings in two years, while the fuel business performed strongly, playing a key role in New Zealand’s fuel supply network.
The oceans trans-Tasman shipping service also gained traction, contributing steady returns.
“Our team is focused on winning in the market, through sales execution, operational excellence and delighting our customers. We are continuing to focus on productivity improvements and positioning Move for when market activity and demand returns,” Millward says.
Funding and outlook
Move secured a $35m loan facility in August 2024, with ANZ renewing its facility in February 2025, extending tenure to August 2026 and adjusting covenants to provide greater flexibility.
Looking ahead, the company expects market conditions to remain subdued.
“While inflation has eased and there are some signs of improved business confidence, a material improvement in market conditions is not expected to be seen until at least mid-2025.
“A lift in market activity and customer demand, combined with improvements from the transformation plan, will enable earnings growth,” the company says.
Move says it remains on track to achieve its financial targets including FY25 positive adjusted net operating cashflow and a “significant improvement” in normalised EBT and a return to positive normalised EBT in FY26.
