Tuesday 23rd February 2021
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New Zealand freight and logistics company, TIL Logistics Group Limited, has reported an increase in Group revenue, earnings and profit for the six months to 31 December 2020 (1H21) as it benefits from improved trading across the majority of its divisions.
The company has seen a recovery in activity since the April lockdown, particularly in sectors which are important sales areas for TLL, including residential construction, infrastructure, food & beverage and agriculture. The second quarter also benefitted as pressure on coastal shipping and capacity at Ports led to an increase in demand for road transport, although this was partially offset by a reduction in demand for warehousing during this time.
Sales revenue of $179.2m was up on the prior year, a solid result given the ongoing impact of COVID-19 and supply chain issues impacting some divisions during the period.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 38% to $32.9m with an improved performance from four of TLL’s five divisions and a slight decrease in the International division.
The company reported a return to profitability, with a Net Profit After Tax of $2.7m, up from a loss of $2.2m in the prior comparative period (pcp). NPAT includes a $(1.3)m non-cash impact of NZ IFRS-16 Accounting for Leases.
The Board retains a prudent approach to cash management and no interim dividend has been declared. A final FY21 dividend will be considered subject to trading conditions and financial performance continuing to improve.
Operating cashflow increased to $27.4m as at 31 December, driven by improved trading and effective working capital management. Since period-end, the company has extended the tenure of its bank facilities out to 31 March 2022 with total borrowings of $83.3m as at 31 December 2020, and cash and cash equivalents of $18.3m.
The company will continue to focus on strategic priorities in the second half of the financial year, being the Freight improvement plan, organic growth, targeted acquisition opportunities, Group synergies and growing shareholder value.
The Board has confirmed its earlier guidance that EBITDA for FY21 is expected to be at least that of the FY20 post IFRS-16 result of $57.4m.
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