Transport and logistics group, MOVE Logistics, has provided a trading update for the six months ending 31 December 2023.
The company is expecting a softer result for the first half of the financial year, as it continues to face economic and sector headwinds that impact customer volumes, costs, and growth opportunities.
MOVE has escalated its comprehensive cost-cutting programme in order to drive efficiency and operating excellence.
For 1H24, normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) are expected to be between $11.5 million and $12.5 million.
This is attributed to lower customer demand, the ongoing re-set of the Freight business, the start-up of the Oceans service, and reduced fuels volumes.
In addition, some project work undertaken by the Specialist division has been delayed and pushed into future periods.
MOVE expects the second half of the year to benefit from increased new business leads and participation in request for proposal (RFP) processes, as well as gains from Project Blueprint initiatives.
The company will provide a further update when it reports its half-year results in February 2024.
Economic and sector headwinds, including inflationary cost pressures and slowing consumer spending, have been impacting the sector, with competitive pricing pressure in freight and warehousing.
Retail and construction, which are important customer sectors for MOVE, have been particularly affected.See more