Logistics group eyes shake-up
The Move Logistics Group has announced it is conducting a comprehensive review of the business despite recording an increase in sales revenue for the year ended June 30, 2021.
The board and leadership of Move, previously known as TIL Logistics Group, was refreshed in July with Chris Dunphy becoming executive director.
In presenting its full-year results, the company says its three priorities are turning around and resetting the freight division, defining, investing in and delivering a multi-service solution for clients, and optimising the property footprint to better meet demands.
Dunphy, pictured, says: “A comprehensive 90-day business review is under way to reset the business and define a clear strategic pathway that will deliver on our priorities of margin improvement, better utilisation of assets and profitability.
“We will be brave in identifying our weaknesses as well as our strengths and doing what is needed to make Move a stronger, leaner and more profitable business.”
Sales revenue for the 2021 financial year was $353.2 million, an increase of six per cent from the previous year, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) clocked $61.3m, up seven per cent.
Move says its net profit after tax of $900,000 reflects the “inflationary environment, significant project variations, increasing fuel and fleet maintenance costs, as well as non-trading items”. Excluding non-trading items, net profit after tax was up 71 per cent to $2.1m.
The company notes the continued economic recovery in New Zealand was driving activity and demand across a range of sectors that are important sales areas for the business, including residential construction, infrastructure, food and beverage, and agriculture.
Move forecasts the current momentum in the domestic economy will continue, but supply and capacity constraints may temper growth in the short term.
It adds continuing disruption is expected on supply chains from Covid-19 in FY22, with lockdowns, shipping constraints and port closures and congestion affecting the import and export of goods from New Zealand.
Trevor Janes, chairman, says: “We were pleased to deliver a year-on-year increase in revenue and profit in a challenging environment, however, we are conscious that our business must and will do better.
“We are now taking bold steps to ensure our business is fully optimised and strongly positioned for the future.”
