Monday 30th November 2020
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The Board of QEX Logistics Limited has today announced the unaudited half-year financial results of the business for the six months ended 30 September 2020 (HY2021).
● Investigations remain ongoing into the missing (and presumed stolen) inventory from the Shanghai-based warehouse. QEX continues to work closely with China Customs, authorities and a specialist legal team
● It has been determined that the inventory went missing prior to 30 September 2020, which is reflected in the HY2021 results
● Revenue for the period was $19.4 million compared to $27.8 million in the prior corresponding period. The net loss after tax for the period was $5.9 million which includes a $4.3 million loss before tax relating to the missing inventory. Without the loss of the inventory, the net loss after tax would have been $1.5 million.
As a result of the loss of inventory and the financial result for the 6 months to 30 September 2020, QEX’s subsidiary, New Y Trading Limited, which owns the inventory that has been misappropriated, and is party to the QEX group of companies’ principal bank funding facility, has, not meet two of its financial covenants comprised within the loan facility documentation. The Company’s bank has confirmed with QEX that there will be no change to the existing banking facility arrangement. They have also confirmed that the bank will provide a waiver for noncompliance with financial covenants for the quarter ended 30 September 2020.
Investigations remain ongoing into the missing product, which is presumed stolen. QEX is actively pursuing several avenues to determine the exact circumstances leading to, and persons responsible for, the removal of these goods from the Shanghai premises. This includes working closely with China Customs and local authorities. A specialist legal team has been appointed to conduct further investigations.
These external pressures, alongside the impact of the missing inventory, present a challenging second half for QEX which will require significant focus and careful management. Strengthening customer confidence following the inventory loss, and associated adverse media coverage, remains a key priority.
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