Move Logistics Group is reporting a net loss after tax of $1.5 million for its half-year financial result with the firm acknowledging more work is needed to lift performance from its freight business.
This follows a net loss of $1.4m in the same six-month period last year. Revenue for the period was $169.5m, down 4% on last year.
The dual-listed company says it saw solid contributions from its contract logistics and international businesses, but this was offset by a “disappointing result” from the freight business as the improvement programme takes longer than anticipated to complete.
Economic conditions also impacted the business during the period, with the company pointing to increasing inflationary pressure, driver shortages, higher absenteeism due to Covid and the impact of adverse weather on customers across a range of sectors including agriculture and infrastructure.
“Freight rates are now better aligned to the market and further work is underway to improve efficiency and rebuild the customer base and volumes,” the company says.
“Contract Logistics delivered a solid revenue result in line with the prior year, while International revenue was up 26% off a smaller base.”
Move also welcomed experienced transport and logistics sector executive Craig Evans who started his role as chief executive on February 1.
Evans was most recently head of Mainfreight’s New Zealand operations and will lead the execution of Move’s strategy across the group, working with its team of more than 1200 people.
“We are on a journey to position Move as a solutions-driven transport and logistics business and a leader in our industry.
“While there is still work to do, we have multiple initiatives underway as we focus on working our assets smarter, investing in what matters, and driving returns for our business.
“We recognise that challenging trading conditions will surround us in 2H23, further exasperated after the recent adverse weather events. Our teams have been working tirelessly to ensure the continuation and quick return of our services and networks during this time and our thoughts are with all New Zealanders who have been affected,” Evans says.
Move is currently trading at just over $1 per share, down from a year high of $1.52.
