MOVE Logistics Group has released its results for the 2023-24 financial year (FY24), admitting that group performance was below aspirations.
The New Zealand-based transport and logistics group lamented “clearly disappointing” results, amidst declined financial figures reflecting a group “underperformance”.
Revenue for FY24 was down by 13% to NZ$301.7 million, which Move said was a result of lower market and customer activity.
Net loss after tax for the year was NZ$48.1 million, including pre-tax, non-trading adjustments of NZ$19.7 million, with reduction in net operating cashflow (including rent and leases) to NZ$5.1 million.
Move said the priority of the board is to restore adjusted net operating cashflow, inclusive of rent and lease payments.
Net debt increased by NZ$1.4 million to NZ$17 million, with total bank debt of NZ$36 million (inclusive of NZ$9 million bank guarantees).
The group said the results reflected an underperformance, but claimed the results were exacerbated by a recessionary environment, which impacted customer demand and highlighted a need to right-size and improve efficiencies within the organisation.
According to Move, a group-wide change program has been developed and is now being executed at pace to drive financial improvement.
Julia Raue, chair of Move said this year’s results are “clearly disappointing, as well as acknowledging the company was “too slow” to react to the recessionary environment which has been stronger for longer than expected.
“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,” Ms Raue said.
“We are moving ahead with a refreshed Board and leadership team and are united in our focus to execute the change program with urgency.”
Move says its success relies on three factors which will improve financial performance, namely; recalibrating operations, profitable revenue growth, and balance sheet resilience.
The change program targets delivery of significantly improved EBT in FY25, and a return to profitable normalized EBT in FY26.
“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,” Raue said.
“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 program will impact in FY25.
“The work we are doing now will reset our company, leverage MOVE’s strengths, realise its considerable potential and grow shareholder value.”
Ms Raue said the board is holding themselves and their team to account, and will keep shareholders and the market informed on their progress.
