The company said on top of the economic conditions, its freight performance was soft. Photo: Supplied
Transport and logistics group Move Logistics has posted a deeper loss as customer demand slows amid tougher economic conditions.
Key numbers for the 12 months ended June compared with a year ago:
- net loss $7.2 million vs $4.2m
- revenue $347.7m vs $364m
- underlying earnings $47.4m vs $56.2m
The company said on top of the economic conditions, its freight performance was soft as it continued work on an improvement programme, the impact of severe weather, as well as inflationary pressure increasing its costs.
It said all of its businesses, excluding freight, delivered revenue gains. Freight revenue fell 19 percent to $146 million, helping drive down the overall revenue.
Move's largest division, contract logistics, saw revenue increase 3 percent to $159.4m.
Underlying earnings fell 16 percent, reflecting the cost pressures, investment in digital tools and new initiatives, including Move's new trans-Tasman shipping service.
The company said following the appointment of its new chief executive, Craig Evans, it carried out an in-depth business review.
Following the review, the company has started work on a new 12 to 18 month programme, called Project Blueprint, 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," he said.
"We are focused on organic growth, through careful customer acquisition and a focus on building base volumes while allowing capacity for higher margin business."
Move said the softer economic conditions and inflationary pressures would continue into the 2024 financial year, as well as "the usual slowdown of activity prior to an election".
It means "inevitably" a reduction in activity across freight and logistics, the company said.