Wednesday 29th August 2018
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TIL Logistics lifted earnings at a slower pace than forecast as the trucking and logistics company faced a rising fuel bill and had to contend with road closures triggered by bad weather.
Stripping out listing costs, its earnings before interest, tax, depreciation and amortisation rose 49 percent to $26.2 million, below the New Plymouth-based company's forecast of $28.2 million. TIL had already warned it would probably fall short of expectations as a recovery in oil prices drove up petrol costs and as storms and bad weather around the nation closed some transport routes and affected major customers.
Transport costs, which include road user charges and petrol costs, climbed 24 percent to $139.7 million while the wage bill jumped 43 percent to $114.9 million. That offset TIL's 39 percent increase in revenue to $331.5 million, which was just ahead of expectations.
"FY18 results were significantly ahead of the previous year, although down on the expectations at the time of the reverse listing due to factors including unexpected pressures within the construction industry, where many of the major players are long term and valued clients of TIL, as well as bad weather and storms impacting on transport needs and higher than expected operating costs," the company said in a statement yesterday.
"TIL Logistics expects to report an increased net profit for the June 2019 year and half yearly dividend payments are expected to continue in FY19 in line with the company’s dividend policy."
Chair Trevor Janes said the company is currently assessing a number of acquisitions. TIL held cash and equivalents of $2.9 million as at June 30 and had drawn down almost $74 million of a $90 million facility with ASB Bank and a $10 million overdraft.
The company went public via a reverse listing in December at an implied price of $1.50 a share. The owners looked at an initial public offering but gave up on those plans in mid-2017 after being told market conditions weren't ripe, part because of the looming general election. The stock last traded at $1.50.
That process included $6.5 million of IPO and listing costs and $11.6 million of share based payments. Including those non-trading costs, TIL reported a loss of $12.2 million, more than $10.3 million loss predicted.
The board declared a final dividend of 2.3 cents per share, or $1.9 million, for registered shareholders on Sept. 19 and payable Sept. 28.
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