Move Logistics Group has reported a net loss after tax of $7.2 million for its full-year result with a “soft performance” from its freight business contributing to the result.
Total revenue for the dual-listed firm was $347.7m for the year to June 30, down 4.5% compared to $364m the previous year. Normalised EBITDA was $47.4m. Its net loss was extended following a loss of $4.2m the year prior.
Revenue from Move’s freight business was down 19% to $146m and EBITDA down 50% to $9.3m. This reflected a decrease in sales, including the loss of a customer contract worth $11m in annualised revenue. The result also included $1.1m of IT project costs.
On top of the weaker freight result, the company points to a moderation in customer demand in response to economic conditions, the impact of weather events, as well as inflationary pressures impacting results.
All businesses, excluding freight, delivered revenue gains, with contract logistics (Move’s largest division) delivering a “solid” year-on-year performance, helping to offset a disappointing result from the freight division.
Its contract logistics business increased revenue 3% to $159.4m while EBITA was down 2% to $34.4m. This division saw a solid performance in logistics and warehousing with capacity at high levels, offsetting small decreases in its fuels business.
Following a review, its specialist and lifting business was reintegrated into the group after a strong year following Covid impacts in FY22. This was a backtrack on plans announced last year to sell the business in order to focus on core freight and contract logistics operations.
However, Move says the specialist division is “a high performing business which delivers robust margins”. Revenue from the operation was up 32% to $18.7m and EBITDA up 132% to $4.3m.
Following the appointment of Craig Evans as chief executive in February, an in-depth business review was conducted. In late FY23, MOVE embarked on ‘Project Blueprint’ – a 12 to 18 month programme to reshape and strengthen the business, and drive organic growth.
“Project Blueprint will create a strong launch pad to support our future growth ambitions, with a more efficient, higher margin business model, that capitalises on Move’s strengths,” Evans says.
“We are focused on organic growth, through careful customer acquisition and a focus on building base volumes while allowing capacity for higher margin business.
“The freight improvement programme remains in progress and the gains from this will be a key driver of improving financial returns.”
Move expects the softer economic conditions and inflationary pressures to continue into FY24, along with a slowdown of activity prior to the election.
“Businesses are telling us they want a strong alternative in the market; a provider who is focused on New Zealand customers, with a breadth of product and service capability, and who can move quickly to deliver a solution that is tailored to their needs,” Evans says.
“We remain committed to delivering exceptional value to our customers, nurturing our talented team, and ensuring the long-term success and prosperity of our company.”
