Interim financial statements.
For the six months ended 31 December 2024
MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT | 1 |
CONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS &
OTHER COMPREHENSIVE INCOME
SIX MONTHS ENDED 31 DECEMBER 2024
NOTES
Revenue
Gain on disposal of assets
Lease income
Insurance income receivable
Other income
Total Income
Transport costs
Employee costs
Rental / lease expenses
Trading and Warehousing costs
Other operating expenses
Depreciation of right of use assets
Net loss on disposal of assets
Other depreciation / amortisation expenses
Other non operating expenses
Total Operating Expenses
Finance costs relating to lease liabilities
Other finance costs - interest on borrowing
Interest income on short term deposit
UNAUDITED | UNAUDITED |
6 MONTHS TO | 6 MONTHS TO |
DECEMBER 2024 | DECEMBER 2023 |
$000 | $000 |
148,426 | 158,250 |
- | 175 |
455 | 547 |
1,402 | - |
368 | 376 |
150,651 | 159,348 |
(61,023) | (67,632) |
(50,316) | (60,836) |
(1,280) | (2,129) |
(6,753) | (4,418) |
(9,910) | (11,115) |
(16,463) | (15,485) |
(1,231) | - |
(3,981) | (6,330) |
(2,039) | (883) |
(152,996) | (168,828) |
(4,450) | (3,956) |
(1,464) | (882) |
155 | 126 |
Loss Before Income Tax | (8,104) | (14,192) |
Income tax (expense)/credit | (452) | 3,862 |
LOSS FOR THE PERIOD FROM CONTINUING OPERATIONS | (8,556) | (10,330) |
(Loss)/Profit attributable to: | ||
Owners of the company | (8,906) | (10,669) |
Non-controlling interests | 350 | 339 |
(8,556) | (10,330) | |
Other comprehensive income: | ||
Other comprehensive Income for the Period, Net of Tax | - | - |
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD, NET OF TAX | (8,556) | (10,330) |
Earnings per share attributable to the ordinary equity holders of the Company | CENTS | CENTS |
Basic & diluted earnings per share for loss attributable to the ordinary equity | (6.98) | (8.36) |
holders of the company | ||
The above consolidated Statement of Profit or Loss & Other Comprehensive Income should be read in conjunction with the accompanying notes.
Julia Raue - Chair | Lachlan Johnstone - Director |
27 February 2025 | 27 February 2025 |
2 MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT
CONSOLIDATED INTERIM BALANCE SHEET
AS AT 31 DECEMBER 2024
NOTES
ASSETS
Current Assets
Cash and cash equivalents
Inventories
Trade and other receivables
Tax receivable
Assets Held for Sale
Total Current Assets
Non-Current Assets
UNAUDITED | AUDITED |
31 DECEMBER 2024 | 30 JUNE 2024 |
$000 | $000 |
7,211 | 9,704 |
573 | 178 |
44,835 | 41,520 |
271 | 179 |
- | 1,929 |
52,890 | 53,510 |
Property, plant and equipment | 47,649 | 54,989 | |
Right of use assets | 162,585 | 171,552 | |
Intangible assets | 1,540 | 1,705 | |
Other receivables | 35 | 270 | |
Total Non-Current Assets | 211,809 | 228,516 | |
TOTAL ASSETS | 264,699 | 282,026 | |
EQUITY | |||
Share capital | 84,262 | 84,262 | |
Other reserves | (66) | (505) | |
Accumulated losses | (69,240) | (60,334) | |
Equity attributable to owners of the parent | 14,956 | 23,423 | |
Non-controlling interest in equity | 3,570 | 3,740 | |
TOTAL EQUITY | 18,526 | 27,163 | |
LIABILITIES | |||
Current Liabilities | |||
Trade and other payables | 31,715 | 31,119 | |
Deferred revenue | 60 | 439 | |
Borrowings | 6 | 9,955 | 26,665 |
Lease liability | 31,081 | 30,263 | |
Employee entitlements | 8,261 | 8,765 | |
Total Current Liabilities | 81,072 | 97,251 | |
Non-Current Liabilities | |||
Borrowings | 6 | 16,204 | - |
Lease liability | 145,447 | 154,362 | |
Provisions for other liabilities and charges | 3,450 | 3,250 | |
Total Non-Current Liabilities | 165,101 | 157,612 | |
TOTAL LIABILITIES | 246,173 | 254,863 | |
TOTAL EQUITY & LIABILITIES | 264,699 | 282,026 |
The above consolidated Balance Sheet should be read in conjunction with the accompanying notes.
MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT | 3 |
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
ATTRIBUTABLE TO OWNERS OF THE
COMPANY
NOTES
Balance as at 1 July 2023
Comprehensive income
SHARE CAPITAL | RETAINED EARNINGS/ (ACCUM. LOSSES) |
$000 | $000 |
84,262 | (12,271) |
OTHER RESERVES | TOTAL |
$000 | $000 |
- 71,376
NON-CONTROLLING INTEREST | TOTAL EQUITY |
$000 | $000 |
3,527 | 74,903 |
(Loss) / profit for the period | - | (10,669) | - | (10,669) |
Other comprehensive income | - | - | - | - |
Total comprehensive income | - | (10,669) | - | (10,669) |
Cumulative translation adjustment | - | - | (252) | (252) |
Transactions with owners: | ||||
Dividends | - | - | - | - |
Balance as at 31 December 2023 | 84,262 | (22,940) | (867) | 60,455 |
Balance as at 1 July 2024 | 84,262 | (60,334) | (505) | 23,423 |
Comprehensive income | ||||
(Loss) / profit for the period | - | (8,906) | - | (8,906) |
Other comprehensive income | - | - | - | - |
Total comprehensive income | - | (8,906) | - | (8,906) |
Cumulative translation adjustment | - | - | 439 | 439 |
Transactions with owners: | ||||
Dividends | - | - | - | - |
Balance as at 31 December 2024 | 84,262 | (69,240) | (66) | 14,956 |
- (10,330)
- -
- (10,330)
- (252)
-
(120)
3,746 64,201
3,740 27,163
350 (8,556)
- -
350 (8,556)
- 439
- (520)
3,570 18,526
The above consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
4 MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
NOTES
Cash flows from operating activities
Receipts from customers and others
Interest received
Dividends received
Payments to suppliers and employees
Government subsidy received
Notional finance charge on NZ IFRS 16 leases
Interest paid
Income tax paid
Net cash generated from operating activities
Cash flows used in investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Repayment of borrowings
Proceeds from borrowings
Repayment of lease liability (NZ IFRS 16)
Dividends paid to shareholders / non-controlling interests
Net cash flow used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents 31 December
UNAUDITED | UNAUDITED |
6 MONTHS TO | 6 MONTHS TO |
DECEMBER 2024 | DECEMBER 2023 |
$000 | $000 |
145,806 | 168,403 |
155 | 126 |
3 | 4 |
(130,582) | (152,838) |
- | 5 |
(4,450) | (3,956) |
(1,442) | (861) |
(544) | (623) |
8,946 | 10,260 |
(54) | (1,424) |
5,179 | 4,112 |
(2) | (12) |
5,123 | 2,676 |
(17,675) | (938) |
17,149 | 5,500 |
(15,516) | (14,104) |
- (120)
(16,562)(9,662)
(2,493)3,274
9,7048,744
7,21112,018
The above consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT | 5 |
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. GENERAL INFORMATION
1.1. REPORTING ENTITY
The core operations of MOVe Logistics Group Limited ("MOVe Logistics" or the "Company") and its subsidiaries (collectively "the Group") are in the New Zealand logistics sector. These include general transport, bulk liquids, heavy haulage, shipping, warehousing and distribution, freight forwarding and storage.
The Company is incorporated and domiciled in New Zealand, registered under the Companies Act 1993 and is a FMC Reporting Entity under part 7 of the Financial Markets Conduct Act 2013. The Company is dual listed with its primary listing of ordinary shares quoted in New Zealand on the NZX Main Board, and a secondary listing in Australia as a foreign Exempt Entity on the Australian securities exchange (ASX).
The registered office of the Company is at 24-30 Paraite Road, Bell Block, New Plymouth, New Zealand. The interim financial statements were approved for issue by the MOVe Logistics Board of Directors on 27 February 2025.
1.2. BASIS OF PREPARATION
This consolidated interim financial report for the half-year reporting period ended 31 December 2024 has been prepared in accordance with accounting standards IAS 34 Interim Financial Reporting and NZ IAS 34 Interim Financial Reporting. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2024 and any public announcements made by MOVe Logistics during the interim reporting period.
1.3. GOING CONCERN
As at 31 December 2024 the Group recorded an after tax loss attributable to owners of $8.6m, and had a working capital deficit of $28.1m (of which $31m is current lease liability) with loans and borrowings due for refinancing within the next twelve months.
In the annual accounts for the previous year ended 30 June 2024 the board concluded that there were material uncertainties that may have arisen (refer financial statements for the year ended 30 June 2024). Directors' analysis of all relevant material uncertainties identified in June 2024 and how these are progressing or have been addressed includes the following:
Trading Performance
While the economic environment is proving slower to recover the Group is well advanced on the range of Accelerate initiatives noted at year end. The cost savings and optimisation plans identified have resulted in a material improvement in the Groups results year on year. In addition to this, the Group performed to plan for the 6 months to December 2024.
In September 2024, we welcomed turnaround specialist Paul Millward to the team. Under strong leadership the Group remains acutely focused on delivery of Accelerate initiatives for 2H25 including gross margin growth, further cost disciplines and improved process efficiencies. New leaders for Freight and Warehousing joined in early 2025. Under the current conditions, Management remains confident that the plan remains on track.
Financial Position
Renewal of Debt Facility
Working with existing banking partner ANZ, the Group has secured an extension of the ANZ facility term to August 2026, with financing terms acceptable to the Group. Note 6 provides details on the updated facilities. With the above facilities, and in conjunction with prudent working capital management, the Group is comfortable that sufficient headroom, cash and debt facilities are available to meet its obligations going forward and to manage the Groups liquidity position appropriately.
6 MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT
Working capital deficit
The Group notes the impact of the current lease liability of $31m on the current liability balance and considers that there are assets available to meet the Group liabilities as they fall due. Given the liability profile, aspects of the balances presented will be funded by ongoing future activities of the business.
Conclusion
Having made due enquiry, the Directors conclude that, to the best of their knowledge and belief, there are no material uncertainties related to the Group being a going concern, and accordingly, these interim financial statements are prepared on a going concern basis.
2. SUMMARY OF MATERIAL ACCOUNTING POLICIES
The accounting policies used in the preparation of these financial statements, unless disclosed below are consistent with those used in the previously published audited consolidated financial statements as at and for the year ended 30 June 2024. There were no new standards, interpretations and amendments effective from 1 July 2024 that would have a material impact on the Group.
Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in New Zealand dollars (rounded to thousands), which is the functional and the presentation currency of all companies in the Group except MOVe Oceans Singapore PTE Limited, MOVE Oceans Limited and TNL Australia Pty Limited, whose functional currencies are United States dollars and Australian dollars respectively.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
a. Impairment of Goodwill
The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable amounts
- At least annually for goodwill
- Where there is an indication that the assets may be impaired (which is assessed at least each reporting period)
The Group concluded that there are no indicators of impairment for any of the CGU's at 31 December 2024, although they will continue to monitor the position closely for any evidence that the goodwill has become impaired.
MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT | 7 |
4. RECONCILIATION TO GAAP MEASURE
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice ("GAAP") and comply with International Financial Reporting Standards Accounting Standards ("IFRS Accounting Standards") and the New Zealand equivalents to International Financial Reporting Standards ("NZ IFRS").
These interim financial statements include non-GAAP financial measures that are not prepared in accordance with IFRS. The non-GAAP financial measures used in this presentation are as follows:
-
Adjusted EBITDA (a non-GAAP measure) represents profit or loss before income taxes from continuing operations (a
GAAP measure), excluding interest income, interest expense, depreciation and amortisation, asset impairments and restructuring & settlement costs (non operating expenses) as reported in the financial statements. - Adjusted EBT (a non-GAAP measure) represents profit or loss before income taxes from continuing operations (a
GAAP measure), excluding asset impairments and restructuring & settlement costs (non operating expenses) as reported in the financial statements.
The Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding of the financial performance and position of the Group as they are used internally to evaluate the performance of business units and to establish operational goals. They should not be viewed in isolation, nor considered as a substitute for measures reported in accordance with IFRS. Non-GAAP measures as reported by the Group may not be comparable to similarly titled amounts reported by other companies.
The following is a reconciliation between these non-GAAP measures and net loss after tax from continuing operations:
Reconciliation to GAAP measure
6 months to | 6 months to | |
December | 2024 | December 2023 |
$000 | $000 |
Loss Before Income Tax from continuing operations (GAAP measure) | (8,104) | (14,192) |
Add back: | ||
Other non operating expenses: | ||
- Asset impairment | 12 | 487 |
- Restructuring & Settlement costs | 2,027 | 396 |
Adjusted EBT (non-GAAP measure) | (6,065) | (13,309) |
Finance costs (net) | 5,759 | 4,712 |
Depreciation & amortisation | 20,444 | 21,815 |
Adjusted EBITDA (non-GAAP measure) | 20,138 | 13,218 |
8 MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT
5. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker (CODM). The CODM is responsible for allocating resources and assessing performance of the operating segments.
The Group has made the decision that the eleven operating segments that form part of the reporting to the Group CEO can be aggregated into five reporting segments. Reportable segments have been determined by having regard to the nature of the services, the processes the various business units undertake to service customers, the allocation of capital, the type of customers serviced, and the nature of the distribution channels.
In addition to GAAP measures, the Group CEO also uses non-GAAP measures (EBITDA and EBT) to assess the commercial performance of the segments. The reportable operating segments have been determined as:
INTERNATIONAL
This segment includes international freight forwarding, shipping and agency services across a broad range of industries.
SPECIALIST
This segment provides transport and lifting solutions for oversized and large items.
FREIGHT
This segment provides nationwide general freight transport services with regional strength. It is able to transport a wide range of freight types.
CONTRACT LOGISTICS
This segment specialises in contracted solutions providing services for customers including warehouse and supply chain capability and delivery of bulk liquids.
CORPORATE
This segment includes our corporate services function.
MOVE LOGISTICS GROUP LIMITED INTERIM FINANCIAL REPORT | 9 |
5. SEGMENT INFORMATION (CONTINUED)
The segment information for the period ended 31 December 2024 is as follows:
International
$000
Specialist
$000
Freight
$000
Contract Logistics
$000
Corporate
$000
Total
$000
6 months to 31 December 2023
Total segment revenue | 9,535 | 9,517 | 63,988 | 79,432 | - | 162,472 |
Inter-segment revenue | (13) | (22) | (2,241) | (1,946) | - | (4,222) |
Revenue from external customers | 9,522 | 9,495 | 61,747 | 77,486 | - | 158,250 |
Adjusted EBITDA | (1,238) | 2,045 | (769) | 14,933 | (1,753) | 13,218 |
Depreciation - tangible assets | 736 | 1,144 | 2,041 | 1,825 | 102 | 5,848 |
Amortisation - ROU assets | 177 | 485 | 5,837 | 8,907 | 79 | 15,485 |
Amortisation - intangible assets | 1 | 37 | 1 | 302 | 141 | 482 |
Adjusted EBT | (2,050) | 316 | (10,390) | 1,802 | (2,987) | (13,309) |
Assets | 28,349 | 19,372 | 111,274 | 148,030 | 9,475 | 316,500 |
Liabilities | 11,211 | 4,662 | 89,523 | 115,865 | 31,038 | 252,299 |
Capital expenditure including intangibles | 55 | 62 | 109 | 1,115 | 111 | 1,452 |
6 months to 31 December 2024 | ||||||
Total segment revenue | 12,283 | 10,460 | 71,213 | 57,883 | - | 151,839 |
Inter-segment revenue | (312) | (150) | (1,753) | (1,198) | - | (3,413) |
Revenue from external customers | 11,971 | 10,310 | 69,460 | 56,685 | - | 148,426 |
Adjusted EBITDA | (171) | 3,432 | 5,762 | 12,332 | (1,217) | 20,138 |
Depreciation - tangible assets | 71 | 875 | 1,618 | 1,156 | 93 | 3,813 |
Amortisation - ROU assets | 191 | 553 | 6,293 | 9,325 | 101 | 16,463 |
Amortisation - intangible assets | 2 | 37 | 1 | 2 | 126 | 168 |
Adjusted EBT | (298) | 1,892 | (3,907) | (724) | (3,028) | (6,065) |
Assets | 18,177 | 19,848 | 100,675 | 123,301 | 2,698 | 264,699 |
Liabilities | 11,297 | 5,886 | 96,290 | 120,325 | 12,375 | 246,173 |
Capital expenditure including intangibles | 56 | - | - | - | - | 56 |
Interest income and expense are not allocated to segments (excluding those related to lease liabilities), as this type of activity is driven by the central treasury function, which manages the cash position of the Group.
Sales between segments are eliminated on consolidation. The amounts provided to the CODM with respect to segment revenue are measured in a manner consistent with that of the financial statements.
The Group has a diverse range of customers from various industries, with only one customer contributing more than 10% of the Group's revenue. These revenues are attributed to the Contract Logistics segment.