Announcement
FLLYR: TLL: TLL FY19 Results Announcement
08:31am
TLL
23/08/2019 08:31
FLLYR
PRICE SENSITIVE
REL: 0831 HRS TIL Logistics Group Limited
FLLYR: TLL: TLL FY19 Results Announcement
TIL LOGISTICS GROUP FY19 RESULTS
o TIL Logistics Group Limited has reported on its first full year as a listed
company, in its FY19 results for the 12 months to 30 June 2019.
o Strong first half growth, with revenue gains across all divisions partly
offset by a higher cost base, additional expenses in the second half of the
year and a slower market in 2H19.
o Growth initiatives having a positive impact, particularly the acquisition
of Specialised Lifting and Transport Group and investment into additional
warehouse capacity.
o EBITDA and adjusted EBITDA ahead of prior year despite increased cost base
and investment into growth initiatives.
o NPAT of $4.0m reflects full year of costs associated with being a listed
company, investment into growth initiatives, slowdown in 2H19 and additional
contingent consideration provisioning for MOVE Logistics of $2.6m. Adjusted
NPAT of $6.6m.
o The Board has declared a final fully imputed dividend of $2.5 cents per
share (cps), taking full year dividends to 5.0 cps.
o Improved performance expected in FY20, driven by new customer contracts,
additional warehousing capacity, organic growth and the benefits of FY19
investment into growth initiatives.
(See attached media release for summary financial results table)
New Zealand freight and logistics company, TIL Logistics Group Limited (NZX:
TLL, "TIL"), has reported business growth and increasing sales for the 2019
financial year, with results reflecting investment into growth initiatives
and a higher cost base.
Highlights for the FY19 year ended 30 June 2019 included the acquisition of
Specialised Lifting and Transport Group (SLTG), the renewal of two major
customer contracts with Z Energy and Farmlands and the opening of three new
warehouses in the second half of the year. The company's commitment to
reducing its environmental impact continues and TIL was a signatory to the
Climate Leaders Coalition and signed a memorandum of understanding with
Hiringa Energy to develop hydrogen fuel cell technology transport solutions.
Sales revenue for FY19 was $355.1m, up 9%. Revenue gains were delivered
across all divisions, with particularly strong growth from Warehousing &
Logistics as new warehousing capacity came online in the second half of the
year. The specialist sector grew significantly following the acquisition of
Specialised Lifting and Transport Group, which delivered additional revenue
of $11.8m. Pleasingly, the Bulk Liquids division also delivered a year on
year increase in sales revenue despite a strong prior year that included one
off revenue gains from the pipeline disruption. Multiple long term fuel
delivery contracts were secured in FY19, underpinning the business going
forward.
Operating costs increased to $332.6m, reflecting the higher cost environment,
expenses associated with growth initiatives and a full year of being a listed
provider with associated corporate and governance costs.
The higher operating cost environment has continued and is being managed
closely, including fluctuating fuel prices, road user charges and regional
fuel taxes, increased wage costs and higher costs for parts and equipment due
to the lower exchange rate. Unexpected demurrage costs were also incurred in
2H19.
Growth initiatives have also had a cost impact, with increased property rent
costs (particularly due to expanded warehousing capacity); wages and fleet
lease costs; establishment of the Senior Leadership Team; and higher repairs
and maintenance due to new fleet decisions being delayed into FY19 while new
contracts were finalised and tightening legislation.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was up
on the prior year to $25.4m with an increase in adjusted EBITDA to $28.0m.
Earnings growth was primarily seen in the first half, with Freighting,
Specialist and International divisions all delivering full year improvements.
Warehousing & Logistics and Bulk Liquids both reflect the costs associated
with growth initiatives that will provide long term value for the business,
particularly new warehousing capacity and set up costs prior to major new
customer contracts commencing.
Net Profit After Tax (NPAT) was $4.0m. A profit improvement was delivered in
the first half, with the second half profit gains offset by increased finance
costs, depreciation and the $2.6m additional provision for the deferred
acquisition consideration related to MOVE Logistics. Excluding the deferred
acquisition consideration, adjusted NPAT was $6.6m.
The Board has declared a final FY19 fully imputed dividend of 2.5 cps, taking
full year dividends to 5.0 cps. The Dividend Reinvestment Plan will be
operational for the FY19 final dividend.
CEO of TIL, Alan Pearson, said: "FY19 was a year of business growth with
expanded capacity, new business acquisitions and wins and organic growth. A
significant focus for management was the continuing amalgamation of TIL's
brands and businesses into a cohesive group organisation, which allows us to
offer our customers an end to end supply chain offer.
"TIL is well positioned to continue building on its strengths and the new
opportunities that are available to us as we meet our customers' needs and
enhance their experience of TIL through the use of technology and consistent
quality service delivery."
Outlook
TIL Logistics is expecting an improved performance in FY20, driven by new
customer contracts, additional warehousing capacity, organic growth and the
benefits of FY19 investment into growth initiatives.
The transport and logistics sector remains fragmented and TIL is well
positioned to build both organically and through carefully selected
acquisitions. Opportunities have been identified across all sectors to
improve volumes and utilisation, expand the offer and drive efficiencies.
TIL expects ongoing high demand from the food, rural and building &
construction sectors. Growth opportunities have been identified for all TIL's
divisions, particularly in Specialised, International and non-fuel Bulk
Liquid haulage.
The benefits of FY19 growth initiatives will start to be seen in FY20, with
additional warehousing capacity due to come online later this year, full year
benefits from new customer contracts that commenced in late FY19 and a full
year contribution from SLTG. In addition, the restructure of NZL into
separate freighting and transport services will deliver synergy and cost
benefits in FY20.
Significant projects will include the opening of a further two warehouses as
well as site expansion in Auckland and implementation of new IT systems for
Freighting and Bulk Liquids, which will drive efficiencies and improve the
customer experience.
ENDS
For further information and media assistance, please contact:
Alan Pearson
Chief Executive Officer
Phone: +64 6 7559457
Email: alan.pearson@til.kiwi
Lee Banks
Chief Financial Officer
Phone: +64 27 525 2876
Email: lee.banks@til.kiwi
Jackie Ellis
Media Liaison
Phone: + 64 27 246 2505
Email: jackie@ellisandco.co.nz
End CA:00339652 For:TLL Type:FLLYR Time:2019-08-23 08:31:35
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