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Freight and logistics company Move has reported a half year loss as Covid-19 lockdowns and travel restrictions disrupted freight movements.
In an announcement to the stock exchange, the company said its financial result reflected the impact of the lockdown and regional border restrictions that were introduced in response to the outbreak of the Delta variant.
“In particular, fuel deliveries decreased significantly during the first quarter impacting on Move’s Fuel business, and several large infrastructure projects were deferred or put on hold which affected Move’s specialist division,” it said.
The result also reflects the cost of of restructuring and rebranding the business (formerly known as TIL) and mounting inflation pressures.
Key number (for the six months ended 31 December 2021 vs year ago)
*Net profit: ($1 million loss) vs $2.6m
*Revenue: $181.4m vs $179.2m
*Operating earnings: ($1.1m loss) vs $3.9m
*Dividend: no dividend
However, the company said a positive recovery had taken place during the second quarter, which it expected to flow into the rest of the financial year.
In the past six months, Move raised $40m to support its brand refresh, complete its business restructure, fund further capital initiatives, modernise its transport fleet and enter into maritime leases.
This included offering customers to the option to charter ships to move freight between secondary ports on both sides of the Tasman.
It hoped the new strategy would boost revenue, lift margins, and maximise its assets.
The outlook for the second half of the year was expected to be challenging, as the sector faced economic and Covid-19-related headwinds.
“High inflationary pressure and rising interest rates are also expected. Move will raise freight rates to offset increasing costs wherever possible.”
It said it was also dealing with acute driver shortages and was hoping that a loosening of border restrictions would enable more drivers to enter the country.
“Although there continues to be uncertainties as noted above the company confirms that it expects FY22 performance to be broadly in line with FY21.”