MOVe Logistics Group – Full Year Results to 30 June 2021
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer MOVE Logistics Group Limited (MOV)
Reporting Period 12 months to 30 June 2021
Previous Reporting Period 12 months to 30 June 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$353,247 5.8%
Total Revenue $353,247 5.8%
Net profit/(loss) from
continuing operations
$869 (56.9%)
Total net profit/(loss) $869 (56.9%)
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.00
Imputed amount per Quoted
Equity Security
$0.00
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.17 $0.15
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer audited financial statements.
Authority for this announcement
Name of person
authorised
to make this announcement
Lee Banks, CFO
Contact person for this
announcement
Lee Banks
Contact phone number 06 755 9405
Contact email address lee.banks@movelogistics.com
Date of release through MAP
26 August 2021
Audited financial statements accompany this announcement.
---
Company Announcement
26 August 2021
MOVE LOGISTICS GROUP FY21 RESULTS
RESULTS IN LINE WITH GUIDANCE; COMPREHENSIVE BUSINESS REVIEW UNDERWAY
For the 12 months ended 30 June 2021
• Results in line with guidance, with year on year increase in sales revenue and EBITDA
1
• Sales revenue up 6% to $353.2m; EBITDA of $61.3m, up 7% on prior year
• Net profit after tax of $0.9m reflects inflationary environment, significant project variations,
increasing fuel and fleet maintenance costs, as well as non-trading items
• Excluding non-trading items
2
, NPAT was up 71% on prior year to $2.1m
• Prudent approach to cash management continues and no final dividend has been declared
• Refreshed Board and leadership in place, with Chris Dunphy taking up role of Executive
Director in July 2021 and Mark Newman appointed as Independent Director
• Comprehensive business review underway with goal to drive margin improvement, better
utilisation of assets and profitability
• Value focused culture with commitment to continually improve safety, customer response,
workplace environment, sustainability and shareholder returns.
Transport and logistics group, MOVe Logistics Limited (NZX: MOV), has reported its financial results
for the year ended 30 June 2021, announcing an increase in revenue and EBITDA and the
commencement of a comprehensive business review led by new management.
Group revenue was up 6% on the prior comparative period (pcp) to $353.2m, with the continued
economic recovery in New Zealand driving activity and demand across a range of sectors which are
important sales areas for MOVe, including residential construction, infrastructure, food & beverage
and agriculture.
Earnings Before Interest, Tax, Depreciation and Amortisation and non-trading costs (EBITDA) of
$61.3m was 7% ahead of the prior year and in line with guidance.
Group EBITDA margin remained flat at 17% with revenue gains from increased warehouse capacity
and specialist haulage project work offset by increasing wage and fuel costs, higher fleet
maintenance costs and significant project variations.
Four of MOVe’s five divisions delivered increased revenue and EBITDA, with a slight decrease in the
International division which has been affected by supply chain headwinds and Covid-19 restrictions.
The significant turnaround programme for the Freight division continues, focused on improving
utilisation and margins.
1
EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation and non-trading costs excluding
income and impairment from associates. EBITDA is a non-GAAP measure
2
Non-trading costs of $1.5m excluding tax comprise $1.2m for a discontinued IT project and $0.3m associated
with an acquisition which was not progressed
Net profit after tax was $0.9m including non-trading and impairment post tax costs of $1.2m. These
were associated with a discontinued IT project, joint venture impairment and an acquisition which
was not progressed. Excluding these non-trading items, NPAT was up 71% on prior year to $2.1m.
A prudent approach to capital expenditure in the post-Covid environment saw spend reduced by
45%, while still maintaining baseline investment in fleet and equipment maintenance and
technology. Capex is expected to increase in FY22 as the company resumes sustaining capital
expenditure, and investment into fleet upgrades and technology.
Cashflow metrics remain positive with net cash generated from operating cashflow increasing to
$43.2m as at 30 June 2021.
Total borrowings reduced to $70.2m at year end, with $16.2m repaid during the year from cash as
well as net proceeds of $8.2m from the mandatory convertible note placed in May 2021. Excluding
lease liabilities, net debt decreased to $65.2m as at year end. The company had cash and cash
equivalents of $13.2m at period end. New financing arrangements are in place for the FY22 year
with ANZ Bank and UDC Finance, providing improved terms and tenure.
Chair of MOVe, Trevor Janes, said: “We were pleased to deliver a year on year increase in revenue
and profit in a challenging environment, however, we are conscious that our business must and will
do better. We are now taking bold steps to ensure our business is fully optimised and strongly
positioned for the future. Led by newly appointed Executive Director, Chris Dunphy, a
comprehensive business review is underway. This will lead to a clear strategy that unlocks the
potential of our business, delivers value for all stakeholders and positions MOVe as the preferred
transport and logistics provider in New Zealand.”
Business Review Underway
The Board and leadership of MOVe were refreshed in July 2021 with the appointment of
experienced transport and logistics sector executives, Chris Dunphy and Mark Newman, to the
Board. Chris took up the role of Executive Director in late July 2021 and has commenced a
comprehensive business review.
Three immediate priorities have been identified to drive margin improvement, better utilisation of
assets and profitability – to turn around and reset the Freight division; to define, invest in and deliver
an attractive multi-service solution for contracted clients; and to optimise the property footprint to
service client demand.
The company will be moving forward with a value focused culture and a commitment to continually
improve safety, customer response, workplace environment, sustainability and shareholder returns.
Outlook
Margin improvement and growing shareholder value remain priorities for the Group.
While the current momentum in the domestic economy is expected to continue, supply and capacity
constraints could temper growth in the short term. Continuing disruption is expected on supply
chains from Covid-19 in FY22, with lockdowns, shipping constraints and Port closures and congestion
affecting the import and export of goods from New Zealand. Inflationary pressures are now looking
more persistent, with increasing wage costs and the continuing challenge of driver shortages in the
transport industry.
Private and public investment, as well as consumer demand and Government spending, is expected
to drive demand in certain sectors such as construction and infrastructure. MOVe will be targeting
those sectors that offer value accretive opportunities for the business.
Executive Director, Chris Dunphy, said: “We believe there is significant potential in the Group. Our
timing is good to shake things up and position our business for a future as an integrated supply chain
provider in New Zealand.
“A comprehensive 90-day business review is underway to reset the business and define a clear
strategic pathway that will deliver on our priorities of margin improvement, better utilisation of
assets and profitability. We will be brave in identifying our weaknesses as well as our strengths and
doing what is needed to make MOVe a stronger, leaner and more profitable business. Essential to
our success is our commitment to delivering value for our people and our customers and reducing
our impact on the environment.”
An update, including the outcomes of the business review, will be provided to shareholders at or
before the 2021 Annual Meeting.
ENDS
For media assistance, please contact: Jackie Ellis t: + 64 27 246 2505 e: jackie@ellisandco.co.nz
For further information, please contact:
Chris Dunphy
Executive Director
Phone: +61 417 888 930
Email: Chris@movelogistics.com
Lee Banks
Chief Financial Officer
Phone: +64 27 525 2876
Email: Lee.Banks@movelogistics.com
About MOVe Logistics Group Limited (MOV)
MOVe is one of the largest domestic freight and logistics businesses in New Zealand, with a
nationwide network of branches, depots and warehouses. MOVe operates through five divisions –
Transport, Warehousing & Logistics, Bulk Liquid transport, Specialised Lifting and Transport and
International logistics.
---
MOVE LOGISTICS GROUP LIMITED
2021 FULL YEAR RESULTS
Chris Dunphy, Executive Director
Lee Banks, Chief Financial Officer
26 August 2021
Agenda
•Overview of Group safety &
financial results
•Group financial results in
detail
•Divisional results
•Key themes and priorities
•Questions and answers
FY21 Results Presentation
2
SUMMARY SAFETY AND
FINANCIAL RESULTS
Safety Performance
2018201920202021
Lost time injury frequency rate28.9325.3624.5019.84
Total recordable injury frequency rate84.1571.3562.1863.50
FY21 Results Presentation
4
•Continuedreduction in lost time injury frequency rate for the 3
rd
year in a row
•Lifting focus on lead indicators
•Accepted into ACC Accredited Employer Program–annual improvements of circa $250k
•Recognised with a Global Fleet Champion Award for Company Driver Safety
•Rolling out in-cab technology to help prevent fatigue events (% completed: Freight 90%, Bulk
Liquids 64%)
FY21 Overview
OPERATING ENVIRONMENT
•Continued economic recovery expected however
supply constraints could temper growth
•Strengthening demand and constrained supply
driving increase in cost pressures across sectors.
Businesses are passing on higher costs
•Supply chain capacity remains congested in New
Zealand~ inflationary pressure
•Driver shortages becoming more acute
•Improved household income supports spending,
with residential construction boosting activity and
oil prices rising
•Agriculture and forestry sector improving but
aquaculture activity down
FY21 Results Presentation
5
KEY EVENTS
•The Group rebranded to bring its
businesses under the banner of MOVE.
This signifies a unified presence across
our end-to-end supply chain solutions
•Chris Dunphy and Mark Newman joined
the MOVE Board and Chris Dunphy
assumed Executive Director role on 27
July 2021
•Refinanced bank debt
•Significant changes in share register
Group Summary Performance
FY21 Results Presentation
6
1.Before non-trading items in FY21 totalling $1.5m (refer non-GAAP reconciliation appendix 2)
2.Profit attributable to shareholders
3.Refer non-GAAP reconciliation appendix 3
20212020
Revenue$353.2 m$333.8 m
↑
5.8%
Total Income$356.8 m$348.0 m
↑
2.5%
EBITDA
1
$61.3 m$57.5 m
↑
6.6%
EBITDA Margin17.2%16.5%
↑
0.7%
EBIT
1
$15.0 m$14.6 m
↑
2.7%
EBIT Margin4.2%4.2%
Net profit after tax
2
$.9 m$ 2.0 m
↓
-55.0%
Net profit after tax (before non trading items)
3
$2.1 m$1.2 m
↑
70.8%
Free cash flow$51.6 m$44.6 m
↑
15.7%
EPS (before non trading items)
2.39 cps1.40 cps
↑
.99 cps
Return on capital employed
5.3%4.8%
↑
0.5%
Year end 30 June
change
no change
DETAILED GROUP
FINANCIAL RESULTS
Earnings improved post
COVID
•Improved income due to recovery
of sales (post COVID), new
warehouses commissioned and
significant specialist windfarm
project
•Gross profit margin improved by
project work
•Increased divisional overheads
driven by a focus on improved
capability in both people and
systems
•Corporate overhead cost increase
due to additional investment in
externally hosted technology
environments
•Depreciation increase due to the
addition of several leased
properties
•Net finance cost decrease driven
by reduction in debt levelsbut
partially offset with margin
increase
FY21 Results Presentation8
$000s20212020Profit Impact% Change
Income
1
356,806346,909
↑
2.9%
Direct Expenses(255,319)(252,188)↓1.2%
Gross profit101,48794,721↑7.1%
Gross profit margin28.4%27.3%↑1.1%
Divisional overheads(36,538)(34,419)↓6.2%
Corporate overheads(3,635)(2,782)↓30.7%
EBITDA
1
61,31457,520↑6.6%
Depreciation & Amortisation(46,362)(42,902)↓8.1%
EBIT
1
14,95214,618↑2.3%
Net finance costs(11,226)(11,824)↑-5.1%
Share of associates(149)(86)↓73.2%
Income tax expense(1,045)(984)↓6.2%
Non controlling interests(435)(496)↑-12.3%
Net profit after tax before non trading
1
2,0981,228↑70.8%
1
Before non-trading items for FY21 totalling $1.5m (refer non-GAAP reconciliation appendix 2 & 3)
Cashflow metrics remain
positive
•Increased free cash flow driven
by lower net capital expenditure
•Net capital expenditure down
due to cautious approach post
COVID
•Managing customers who
requested extended payment
terms
•Interest paid decrease due to
reduced debt levels
•Tax payments increased due to
higher tax instalment rates
•Dividends represent those paid
to non controlling interests
•Cash conversion of 94.5%
remains strong
FY21 Results Presentation9
$000s20212020
Cashflow
Impact% change
EBITDA excluding non cash items
60,67457,361
↑
5.8%
Working capital movement
(3,348)(2,156)
↓
55.3%
Net operating cashflows
57,32655,205
↑
3.8%
Capital expenditure
1
(7,160)(12,966)
↑
-44.8%
Sale of PPE
1
1,4682,387
↓
-38.5%
Net capital expenditure
(5,692)(10,579)
↑
-46.2%
Free cash flow
51,63444,626
↑
15.7%
Acquisitions
(230)(5)
↓
4,500.0%
Net cash flow before financing and tax
51,40444,621
↑
15.2%
Net interest payments
(11,057)(11,599)
↑
-4.7%
Tax payments
(2,504)(1,205)
↓
107.8%
Advances to/from associates
0275
↓
-100.0%
Dividends (non controlling interests)
(371)(672)
↑
-44.8%
Cash flow before movements in net debt
37,47231,420
↑
19.3%
EBITDA cash conversion
94.5%96.2%
↓
-1.8%
1
Adjusted to net of assets sold and then leased by the Group
Sustaining capital
expenditure needs to resume
FY21 Results Presentation
•Prudent management and
minimisation of capex in
post COVID environment
•Average age of fleet needs
to be managed down
(current aging owned
prime movers: 12.6yrs)
•Replacement of aging fleet
is planned over the next
two years
Sustaining capital expenditure/depreciation and software amortisation
FY2021
46%
FY2020
83%
10
$000sFleetEquipment
L/H
Improvem
ent
IT
Total
Sustaining
Total
Growth
Total
Capex
Freight 1,142 442 128 2 1,714 -1,714
Specialist205 77 5 -287 -287
Warehousing & Logistics566 326 -78 970 1,053 2,023
Bulk Liquids2,116 94 --2,210 -2,210
International 59 36 -7 102 75 177
Corporate-38 -711 749 -749
TOTAL FY214,088 1,013 133 798 6,032 1,128 7,160
TOTAL FY20
1
7,004 780 139 2,669 10,592 2,374 12,966
1
Adjusted to net of assets sold and then leased by the Group
Refinancing completed
Debt profile
•$65 million refinancing completed in July 2021
•Average debt maturity increased to 4.3 years post
refinance, an increase from 1.5 years as at 30 June
2021
Balance Sheet Position
•Net debt position excluding lease liabilities of $65.2m
•Gearing of 63% is down 4% on prior year
Credit metrics
•EBIT to interest cover is 3.17 times
•Leverage ratio is 2.28 times
•Average cost of borrowing 3.82%
•Improved covenants from refinance (interest cover
decreased from 3.0x to 2.5x and debt service cover
removed)
FY21 Results Presentation11
-
5
10
15
20
25
30
FY22FY23FY24FY25FY26FY27
Millions
Group Debt Maturity Profile
(post July 21 refinance)
DIVISIONAL RESULTS
MOVeoperates across five divisions
FY21 Results Presentation
13
Freight BULK LIQUIDSWAREHOUSING
& LOGISTICS
INTERNATIONALSPECIALIST
One of NZ’s
largest general
freight and line
haul transport
service providers
with a nationwide
network and
regional breadth.
Specialists in
transporting fuel,
LPG and industrial
chemicals,
transporting c.
40% of New
Zealand’s
petroleum.
NZ’s largest 3PL
operation,
providing a
national
warehousing
solution.
International
freight forwarding
and logistics
services. TIL’s
offering also
includes custom
clearance support
and port services.
Group of
businesses
specialising in
heavy and large
haulage and
machinery lifting
as well as advisory
services.
48%22%21%2%7%
27%22%37%3%11%
% Group Revenue
% Group EBITDA
Freight
•Revenue up 4.8% on last year due to post covid recovery
•EBITDA margin remained flat and is below acceptable levels.
Low margin pricing and some operational inefficiencies exist
•Increase in EBITDA driven by sales uplift but offset by
increase in overhead costs
•Focus to improve current ROCE of 1.1% by:
-Conversion to a low asset model
-Review pricing to address current cost pressures and
low margins
-Rationaliseexcess capacity and low margin customers
-Continue to adopt other transport modes such as rail
and coastal as part of customer solutions
-Optimiseoperational structures
•LTIFR while improved still needs focus
FY21 Results Presentation
-
2
4
6
8
10
12
14
16
18
20
FY 2020FY 2021
NZD millions
EBITDA
60
80
100
120
140
160
180
FY 2020FY 2021
NZD millions
Revenue
14
New brand to move through fleet
FY21 Results Presentation15
Warehousing and Logistics
FY21 Results Presentation
•Revenue growth of 3.4% driven by:
-two new warehouses commissioned
-full year impact of warehouse that commenced in FY2020
•Sales growth from expansion offset by softer sales in Auckland
transport volumes and Christchurch warehousing utilisationlevels
•Expansion at Rolleston warehouse has generated capacity and an
opportunity for property rationalisation
•ForemansRoad warehouse in Hamilton with cornerstone agriculture
customer commenced operating in January 2021
•Port congestion negatively impacted Auckland operations in the
second half of FY2021
•EBITDA margin increased 2.3% from prior year due to covid recovery
•ROCE improvement from 4.8% required with a focus on:
-property rationalisation
-capacity utilisation
-expansion into different market segments
•Improved LTIFR is pleasing
-
10
20
30
40
50
60
70
80
FY 2020FY 2021
NZD millions
Revenue
-
3
6
9
12
15
18
21
24
27
FY 2020FY 2021
NZD millions
EBITDA
16
Bulk Liquids
•Revenue increased by 5.8% and recovered to pre-covid
levels
•EBITDA margin decreased due to higher fleet repairs and
maintenance and increased staff costs
•Overheads increased on prior year due to additional staff
and technology cost increases
•Working closely with partner to develop opportunities for
hydrogen fuel
•Responding to customer demands for greater service
•LTIFR has remained flat and continues to be a focus
-
10
20
30
40
50
60
70
80
90
FY 2020FY 2021
NZD millions
Revenue
-
2
4
6
8
10
12
14
16
FY 2020FY 2021
NZD millions
EBITDA
FY21 Results Presentation17
Rebranded unit for MOVE Fuel
FY21 Results Presentation18
Specialist
•Revenue increase on prior year due to:
-continuation of windfarm project started in FY2020
-new business contracted in the construction sector
•EBITDA margin decreased 1% to 28% for the year.
Significant project variations resulted in lower margin
•ROCE improved due to significant project work completed
using existing asset base
•Significant reduction in LTIFR
FY21 Results Presentation19
-
1
2
3
4
5
6
7
8
FY 2020FY 2021
NZD millions
EBITDA
Transformer on the move
FY21 Results Presentation20
International
•Revenue includes $1.5m for acquired Australia business.
Excluding acquisition revenue down 25% on prior year
•Revenue negatively impacted by port congestion
•Reduced EBITDA due to cost base remaining unchanged
despite lower sales
•Expecting slow and steady recovery with the current port
congestions expected to continue
•Opportunity to streamline minority ownership structures
•Lost time injury free for 2 years
FY21 Results Presentation21
2
3
4
5
6
7
8
9
10
FY 2020FY 2021
NZD millions
Revenue
-
1
2
3
FY 2020FY 2021
NZD millions
EBITDA
Importation and ground services in action
Arrival of America’s Cup
yacht per Antonov-124 at
Auckland Airport
FY21 Results Presentation22
KEY THEMES AND
PRIORITIES
Key Themes & Priorities
Underpinned by a value focussed culture
FY21 Results Presentation24
Business Review
Fix, Grow,
Reposition
Property Lease
Rationalisation
Re-engagement
with key customers
Customer pricing
review
Leadership and
sales uplift
Focus on capex
efficiency and
ROCE
Technology &
process efficiencies
to support business
Priority # 1: Fix the Freight Division
•MOVe Freight is a diverse offering of full truckload and less-than-full-load freight
•Our branding has been diverse and often overlapping
•We have a strong competency in full truck load transport but less-so in multi-
modal freight
•A number of our freight terminals are sub-optimal in terms of location, size and
layout
•Discipline around margin and vehicle utilisation can be improved significantly
•Some customers are better suited to alternative suppliers. Others need better
multi-modal choice from MOVe
FY21 Results Presentation25
Priority #2: Fix & grow our Contract Logistics
offering
•Both MOVe Fuels and MOVe Logistics share strong contracted multi-year revenue
streams
•We have identified opportunities to better service contracted customer needs
•Long lead times for specialised trailers and new warehouses require targeted
capital investment
•Our sites need to be more customer-facing and led via marketing
•Our continued focus is to drive ROCE improvement
FY21 Results Presentation26
Priority #3: Reposition Property
•MOVe has a number of facilities that are sub-optimal
•The market for industrial property remains tight
•We have a number of long-tail leases which will require repositioning, with a
number of sites capable of being repurposed or sub-let on favourable terms e.g.
South Auckland industrial property market
•Looking for rail serviced real estate throughout our network
FY21 Results Presentation27
MOVeto Improve
MOVeis focussed on providing its shareholders, team
members and customers with a commitment to
improvement.
•We will improve our shareholder returns, so that we
are measured comparably to our listed peers;
•We will improve our facilities and incentivise good
outcomes to retain good people & attract more like-
minded MOVers;
•We will improve our customer response times, our
metrics and our ability to make change that benefits
our customers’ businesses; &
•We will improve our commitment to sustainability
and our carbon footprint for all stakeholders.
FY21 Results Presentation
28
QUESTIONS AND
ANSWERS
Chris Dunphy
Executive Director
Phone: +61 417 888 930
Email: Chris@movelogistics.com
Lee Banks
Chief Financial Officer
Phone: +64 27 525 2876
Email: Lee.Banks@movelogistics.com
APPENDICES
Appendix 1: Our Vision And Values
FY21 Results Presentation
SAFETY.
We focus on team safety ensuring every employee arrives home
safe and sound whatever their role. This includes training our
staffinthelatestsafetyproceduresandusingqualityequipment
aspartofour processes.
PROFESSIONALISM.
We do what we say we will do. We act openlyandhonestlyboth
withintheorganisationandwithourcustomers. Wevalueethics,
integrityandwedowhatisright.
CUSTOMER.
We are focused on the needs ofour customersWerecognise
withoutcustomerswehavenobusinessanddowhatittakes to
be our customers’ logistics partner of choice. We are easy todo
businesswith,collaborateandlearnfromoutcomeswithour
customers.
INNOVATION.
We strive to be leaders in logistics innovation and welcome
newtechnologywithenthusiasmandinterest.Wealwayslook
forwaystoimproveoureffectivenessandefficiency.
SUSTAINABILITY.
We want to be a leader in sustainablelogistics services. Creation
of a sustainable strategy that focuses on our people, customers,
investors and communities, is important. Our strategy extends to
emissionreductiontargetsandtransparentreporting,with the aim
beinga betterenvironment for usall.
RESULTS DRIVEN.
We are committed to providing thebest services, exceeding
expectations of our customers and creating sustainable
value forour shareholders andstakeholders.
TEAM.
We work together as a cohesive group, to empower our
individual strengths. All employees are given the opportunity for
growth and development. We show pride in the appearance of
ourselves andourequipment. We all share a “can do”attitude.
Our Vision is to be Oceania’s premier transport and logistics company
31
Appendix 2: Non-GAAP EBITDA Reconciliation
$MillionsFY21FY20
Net profit before income tax (GAAP measure)2.03.5
Add back:
Share of loss of associates.1.1
Net finance costs11.211.8
Impairment of investment in associates.1.4
Other non operating expenses1.5.1
Bargain on acquisition-(1.1)
Depreciation & Amortisation46.442.9
Deferred consideration and advisory costs expensed-(.2)
EBITDA excluding non-trading items (non-GAAP measure)61.357.5
FY21 Results Presentation
32
Appendix 3: Non-GAAP NPAT Reconciliation
$MillionsFY21FY20
Net profit after income tax (GAAP measure) attributable to owners.92.0
Add back:
Other non operating expenses, net of tax1.1.1
Bargain on acquisition-(1.1)
Impairment of associates.1.4
Deferred consideration and advisory costs expensed-(.2)
Net profit after tax excluding non-trading items (non-GAAP measure) attributable to
owners
2.11.2
FY21 Results Presentation
33
Appendix 4: Four year financial summary
FY21 Results Presentation
34
$000s
2018
2
2019
2
20202021
Income
1
331,524360,056346,909356,806
Direct Expenses(248,287)(268,658)(252,188)(255,319)
Gross profit83,23791,39894,721101,487
Gross profit margin25.1%25.4%27.3%28.4%
Divisional overheads(56,802)(61,640)(34,419)(36,538)
Corporate overheads(247)(1,757)(2,782)(3,635)
EBITDA
1
26,18828,00157,52061,314
Depreciation & Amortisation(12,417)(13,610)(42,902)(46,362)
EBIT
1
13,77114,39114,61814,952
Net finance costs(3,329)(4,040)(11,824)(11,226)
Share of associates(127)(361)(86)(149)
Income tax expense(2,490)(3,026)(984)(1,045)
Net profit after tax
1
7,8256,9641,7242,533
Non trading items (net of tax)(19,488)(2,600)787(1,229)
Reported NPAT (post non trading)(11,663)4,3642,5101,304
Non controlling interests(528)(360)(496)(435)
Reported profit attributable to owners(12,191)4,0042,015869
Reported profit attributable to owners (pre non trading)7,2976,6041,2282,098
1
Before non trading items
2
2019 and prior does not include the impact of NZ IFRS-16
Appendix 5: Definitions Non-IFRS information
MOVE Logistics Group uses several non-GAAP measures when discussing financial performance and the Board and
Management believes this provides a better reflection of the company’s underlying performance.
•Average capital employed: Total assets less current liabilities, excluding tax and borrowings
•EBITDA: Earnings before interest, tax, depreciation, amortisation and non-trading costs excluding income and impairment
from associates
•EBITDA Margin: EBITDA as a percentage of total income
•EBIT: EBITDA less depreciation and amortisation
•EBIT Margin: EBIT as a percentage of total income
•Free cash flow: EBITDA excluding non-cash items plus movements in working capital, less net capital expenditure
•Gross profit: revenue less cost of goods sold
•Gross profit margin: gross profit as a percentage of total income
•Net debt: interest bearing liabilities less cash and cash equivalents
•Operating cash conversion: cash generated from operations as a %age of EBITDA less non-cash items
•Return on capital employed: rolling 12 months EBIT divided by average capital employed
FY21 Results Presentation35
Disclaimer
This presentation has been prepared by MOVE Logistics Group Limited (“MOV”).The information in this presentation is of a general nature only. It is not a complete
description of MOV.
This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for such offers.
This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor.It does not take into account any
particular prospective investor’s objectives, financial situation, circumstances or needs, and does not purport to contain all the information that a prospective
investor may require. Any person who is considering an investment in MOV securities should obtain independent professional advice prior to making an investment
decision, and should make any investment decision having regard to that person’s own objectives, financial situation, circumstances and needs.
Past performance information contained in this presentation should not be relied upon as (and is not) an indication of futureperformance.This presentation may
also contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy of MOV. Information about
the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this presentation is a promise or representation as to the future or a
promise or representation that an transaction or outcome referred to in this presentation will proceed or occur on the basis described in this presentation.
Statements or assumptions in this presentation as to future matters may prove to be incorrect.
A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitute for, the information provided in the
MOV Listing Profile.
MOV and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature (including as to
accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any errors in or omissions from, or for any loss
(whether foreseeable or not) arising in connection with the use of or reliance on, information in this presentation.
FY21 Results Presentation36
---
ANNUAL FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
ANNUAL FINANCIAL STATEMENTS
ANNUAL FINANCIAL STATEMENTS JUNE 2021
CONTENTS
Consolidated Statement of Profit or Loss & Other Comprehensive Income1
Consolidated Balance Sheet2
Consolidated Statement of Changes in Equity3
Consolidated Statement of Cash Flows4
Notes to the consolidated financial statements5 - 41
DIRECTORS’ STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
The Directors of MOVe Logistics Group Limited are pleased to present the financial statements for MOVe Logistics Group
Limited and its subsidiaries (together the Group) for the year ended 30 June 2021 contained on pages 1 - 41.
Financial statements for each financial year fairly present the financial position of the Group and its financial
performance and cash flows for that period and have been prepared using appropriate accounting policies, consistently
applied and supported by reasonable judgments and estimates and all relevant financial reporting standards have been
followed.
Proper accounting records have been kept that enable, with reasonable accuracy, the determination of the financial
position of the Group and facilitate compliance of the financial statements with the Financial Markets Conduct Act 2013.
Adequate steps have been taken to safeguard the assets of the Group to prevent and detect fraud and other
irregularities.
The Directors hereby approve and authorise for issue the financial statements for the year ended 30 June 2021. They do
not have the power to amend these financial statements after issue.
For and on behalf of the Board
Trevor Janes - Chairman
25 August 2021
Lorraine Witten - Director
25 August 2021
1
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS &
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
NOTES
30 JUNE 2021
$000
30 JUNE 2020
$000
Revenue 7353,247333,811
Gains on disposal of assets 869648
Lease income1,6321,333
Other income 1,05812,223
Total Income 7356,806348,015
Transport costs(136,891)(132,718)
Employee costs(127,609)(125,309)
Rental / lease expenses(3,459)(5,114)
Other operating expenses(27,533)(26,248)
Changes in contingent consideration-225
Depreciation of right of use assets(31,471)(28,460)
Other depreciation / amortisation expenses (14,891)(14,442)
Other non operating expenses(1,451)(104)
Impairment of investment in associates16.2(95)(440)
Total Operating Expenses 8(343,400)(332,610)
Finance costs relating to lease liabilities(8,046)(7,947)
Other finance costs - interest on borrowing(3,181)(3,940)
Interest income on short term deposit163
Operating surplus before income tax2,1803,581
Share of (loss) of associates (149)(86)
Profit Before Income Tax 2,0313,495
Income tax expense 9(727)(984)
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 1,3042,511
Profit attributable to:
Owners of the company8692,015
Non-controlling interests435496
1,3042,511
Other comprehensive income:
Comprehensive Income for the Period, Net of Tax --
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 1,3042,511
Earnings per share for profit attributable to the ordinary
equity holders of the Company
CENTSCENTS
Basic and diluted earnings per share 110.992.31
The above consolidated Statement of Profit or Loss & Other Comprehensive Income should be read in conjunction with the accompanying
notes.
2
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2021
NOTES
30 JUNE 2021
$000
30 JUNE 2020
$000
ASSETS
Current Assets
Cash and cash equivalents 12.113,21411,882
Inventories 5568
Trade and other receivables 12.249,75443,711
Tax receivable450
-
Advances to associates 12.3218305
Total Current Assets 63,69155,966
Non-Current Assets
Property, plant and equipment 13.187,78594,229
Right of use assets13.2164,826170,029
Intangible assets 13.321,17323,821
Investments in associates 16.2417653
Total Non-Current Assets 274,201288,732
TOTAL ASSETS 337,892344,698
EQUITY
Share capital1437,05437,054
Other reserves48-
Accumulated losses(873)(1,742)
Equity attributable to owners of the parent 36,22935,312
Non-controlling interest in equity1,7381,614
TOTAL EQUITY 37,96736,926
LIABILITIES
Current Liabilities
Trade and other payables 12.431,84027,050
Tax payable-461
Deferred revenue7504361
Borrowings 12.667,3526,100
Lease liability13.227,31025,882
Employee entitlements 12.512,52414,208
Provision for other liabilities and charges
-
294
Total Current Liabilities 139,53074,356
Non-Current Liabilities
Borrowings 12.62,81180,163
Lease liability13.2144,218147,600
Convertible note12.77,395-
Derivative financial instrument12.7834-
Deferred income tax liability 13.42,6823,340
Provisions for other liabilities and charges 13.52,4552,313
Total Non-Current Liabilities160,395233,416
TOTAL LIABILITIES 299,925307,772
TOTAL EQUITY & LIABILITIES 337,892344,698
The above consolidated Balance Sheet should be read in conjunction with the accompanying notes.
3
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
ATTRIBUTABLE TO OWNERS OF THE
COMPANY
NOTESSHARE CAPITALRETAINED EARNINGS/(ACCUM. LOSSES)OTHER RESERVESTOTAL NON-CONTROLLING INTERESTTOTAL EQUITY
$000$000$000$000$000$000
Balance as at 1 July 201935,449(2,364)-33,0851,23734,322
Adoption of NZ IFRS 16-765-765-765
Revised balance as at 1 July 201935,449(1,599)-33,8501,23735,087
Comprehensive income
Profit for the year-2,015-2,0154962,511
Other comprehensive income-
-----
Total comprehensive income-2,015-2,0154962,511
Transactions with owners:
Dividends and dividend reinvestment plan1,605(2,158)-(553)(119)(672)
Balance as at 30 June 202037,054(1,742)-35,3121,61436,926
Balance as at 1 July 2020
37,054(1,742)-35,3121,61436,926
Comprehensive income
Profit for the year
-869-8694351,304
Other comprehensive income
------
Total comprehensive income
-869-8694351,304
Cumulative translation adjustment
--(9)(9)-(9)
Transactions with owners:
Employee share scheme20
--5757-57
Non-controlling interest on acquisition of
subsidiary
----6060
Dividends and dividend reinvestment plan
----(371)(371)
Balance as at 30 June 2021
37,054(873)4836,2291,73837,967
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
4
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES
30 JUNE 2021
$000
30 JUNE 2020
$000
Cash flows from operating activities
Receipts from customers 351,850344,947
Interest received 163
Dividends received 51218
Deferred consideration-(4,000)
Payments to suppliers and employees (295,389)(298,291)
Government subsidy received26710,723
Notional finance charge on NZ IFRS 16 leases(8,046)(7,947)
Interest paid (3,011)(3,652)
Income tax paid (2,504)(1,205)
Net cash generated from operating activities 15.143,21940,856
Cash flows used in investing activities
Purchase of business, net of cash acquired(230)(5)
Purchase of property, plant and equipment(6,253)(13,428)
Proceeds from sale of property, plant and equipment1,4676,584
Purchase of intangible assets(359)(2,190)
Advances to associates -275
Net cash used in investing activities (5,375)(8,764)
Cash flows from financing activities
Repayment of borrowings15.2(16,242)(5,721)
Proceeds from borrowings-2,750
Convertible note15.28,200-
Repayment of lease liability (NZ IFRS 16)15.2(28,099)(22,956)
Dividends paid to shareholders / non-controlling interests(371)(672)
Net cash flow used in financing activities(36,512)(26,599)
Net increase in cash and cash equivalents1,3325,493
Cash and cash equivalents at beginning of year 11,8826,389
Cash and cash equivalents 30 June13,21411,882
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 5
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. GENERAL INFORMATION
1.1. REPORTING ENTITY
The core operations of MOVe Logistics Group Limited (formerly known as TIL Logistics Group limited, refer note 21) (“MOVe
Logistics” or the “Company”) and its subsidiaries (collectively “the Group”) are in the New Zealand logistics sector. These
include general transport, bulk liquids, heavy haulage, shipping, storage and distribution, freight forwarding, national and
international household removals and storage.
The Company is incorporated and domiciled in New Zealand, registered under the Companies Act 1993 and is a FMC
Reporting Entity under part 7 of the Financial Markets Conduct Act 2013. The Company is listed on the NZX Main Board.
The registered office of the Company is at 330 Devon Street East, New Plymouth, New Zealand.
The consolidated financial statements of the Company as at, and for the year ended 30 June 2021, comprise the Company
and its subsidiaries (refer note 16.1), together referred to as the “Group”.
1.2. BASIS OF PREPARATION
These financial statements have been prepared on a historical cost basis.
The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting
estimates. It also requires Management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas where assumptions and estimates are significant to the consolidated financial statements are
disclosed in note 4.
The consolidated financial statements have been prepared in accordance with the Financial Reporting Act 2013 and the
Companies Act 1993.
The principal accounting policies adopted in the preparation of the financial statements are selected and applied in a
manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby
ensuring that the substance of the underlying transaction and other events is reported. These policies have been
consistently applied to all the periods presented, unless otherwise stated. To ensure consistency with the current period,
comparable figures have been restated where appropriate.
1.3. STATEMENT OF COMPLIANCE
The Group is a for-profit entity. Its financial statements have been prepared in accordance with, and comply with, New
Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with New Zealand Equivalents to International
Financial Reporting Standards and other applicable Financial Reporting Standards and Authoritive Notices, as appropriate
for for-profit entities. The financial statements comply with International Financial Reporting Standards (IFRS).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1. CONSOLIDATION
a. Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group. They are de-consolidated from the date that control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the
equity interest issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting
from a contingent consideration arrangement and the elimination of any balances arising between the Group and the
acquiree.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 6
a. Subsidiaries (continued)
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously
held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gain or loss arising from
remeasurement is recognised in profit or loss.
Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. On an acquisition
by acquisition basis, the Group recognises any non-controlling interest in the acquisition either at fair value or at the non-
controlling interest’s proportionate share of the acquiree’s net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree, and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the
identifiable net assets acquired, is recorded as goodwill.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently re-measured to fair value with changes in fair value recognised in profit or loss.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted
by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated Statement of
Profit or Loss & Other Comprehensive Income, Statement of Changes in Equity and Balance Sheet respectively.
b. Associates
Associates are all entities over which the Group has significant influence but not control, generally accompanying
a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the
equity method of accounting after initially being recognised at cost. The Group’s investment in associates includes
goodwill identified on acquisition, net of an accumulated impairment loss. The Group’s share of its associates post-
acquisition profits or losses is recognised under ‘Share of (loss) / profit of associates’ in the Statement of Profit or Loss &
Other Comprehensive Income, and its share of post-acquisition movements in reserves is recognised in reserves. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s
share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables,
the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the
associate.
Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s
interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure
consistency with the policies adopted by the Group.
2.2. FOREIGN CURRENCY TRANSLATION
a. Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘the functional currency’). The financial statements are presented in
New Zealand dollars (rounded to thousands), which is the functional and the presentation currency of all companies in
the Group.
b. Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss.
2.3. NEW ACCOUNTING STANDARDS
During the year the Company has revised its accounting policy in relation to upfront configuration and customisation
costs incurred in implementing Software-as-a-Service (SaaS) arrangements in response to the IFRIC agenda decision
clarifying its interpretation of how current accounting standards apply to these types of arrangements. The new
accounting policy is disclosed in note 13.3. There are no significant customisation or configuration costs and therefore no
material impact on the financial statements.
2.4. STANDARDS ISSUED BUT NOT YET ADOPTED
There are no new standards or amendments to standards and interpretations that are effective for periods beginning on
or after 1 July 2021 that will have a material impact on the consolidated financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 7
3. FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise bank loans, convertible notes and overdrafts, cash, trade creditors
and accruals and trade debtors. The main purpose of these financial instruments is to raise and provide working capital
for the Group’s operations.
This note explains the Group’s exposure to financial risks and how these risks affect the Group’s future financial
performance.
RiskExposure arising fromMeasurement
Credit risk
Cash and cash equivalents and trade
receivables.
Aging analysis & credit ratings
Market risk - interest rateLong term borrowing at variable ratesSensitivity analysis
Liquidity riskBorrowings and other liabilitiesRolling cash flow forecast
The Group’s risk management is carried out by a central treasury department (Group Treasury) under policies approved
by the Board of Directors. Group Treasury identifies, evaluates and manages financial risks in close co-operation with the
Group’s operating units. The Board provides written principles for overall risk management, as well as policies covering
specific areas, such as foreign exchange risk, funding risk, interest rate risk, credit risk and use of derivative financial
instruments and non-derivative financial instruments.
3.1. CREDIT RISK MANAGEMENT
In the normal course of business the Group incurs credit risk from trade debtors and transactions with financial
institutions. The Group has a credit policy that it uses to manage this risk. As part of this policy limits on exposures with
counter-parties have been set and approved by the Board of Directors and are monitored on a regular basis.
The Group has no significant concentrations of credit risk. The Group does not require any collateral or security to support
financial instruments due to the quality of the financial institutions and trade debtors dealt with. The Group normally gives
30 or 60 days credit on its trade receivables.
At 30 June the Group’s credit risk exposure is equal to the carrying value of its financial assets.
2021
$000
2020
$000
Trade and other receivables
Trade receivables47,41843,740
Credit loss provision(1,152)(2,952)
Total trade receivables46,26640,788
Accrued revenue1,476717
Sundry receivables497534
Advances to associates218305
Cash and short term bank deposits
Bank with AA- credit rating13,21411,882
a. Impaired trade receivables
Individual receivables which are known to be uncollectible are written off by reducing the carrying amount directly. The
other receivables are assessed collectively to determine whether there is objective evidence that an impairment has
been incurred but not yet been identified. For these receivables the estimated impairment losses are recognised in
a separate provision for impairment. The Group considers that there is evidence of impairment if any of the following
indicators are present:
• significant financial difficulties of the debtor
• probability that the debtor will enter bankruptcy or financial reorganisation, and
• default or delinquency in payments.
Receivables for which an impairment provision was recognised are written off against the provision when there is no
expectation of recovering additional cash.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8
3.1. CREDIT RISK MANAGEMENT (CONTINUED)
Impairment losses are recognised in profit or loss within other expenses. Subsequent recoveries of amounts previously
written off are credited against other expenses.
Movements in the provision for impairment of trade receivables that are assessed for impairment collectively are as
follows:
2021
$000
2020
$000
At 1 July2,952865
Provision for impairment recognised during the year193393
Provision for credit notes to revenue(1,770)1,770
Receivables written off during the year as uncollectible(223)(76)
At 30 June 1,1522,952
The table below sets out information about the credit quality of trade receivables net of the expected credit loss provision:
Current1 -29 days
overdue
30 - 59 days
overdue
60+ days
overdue
Total
$000$000$000$000$000
30 June 2020
Gross carrying amount36,3062,8382,0322,56443,740
Baseline32267193352934
Specific-7931,225-2,018
Total expected credit loss rate0.9%30.3%70.0%13.7%
Credit loss provision3228601,4183522,952
30 June 2021
Gross carrying amount41,7533,4101,0951,16047,418
Baseline125661268351,152
Specific-----
Total expected credit loss rate0.3%1.9%11.5%72.0%
Credit loss provision125661268351,152
Critical estimates and judgements
a. Credit loss provision
To measure expected credit losses, trade receivables have been grouped and reviewed on the basis of the number of
days past due. The credit loss provision has been calculated by considering the impact of the following characteristics:
• The baseline loss rate takes into account the average write-off history of the Group over a two-year period as a
predictor of future conditions and applies an increasing expected credit loss estimate by trade receivables aging
profile.
• Specific credit loss provisions are made based on any specific customer collection issues that are identified.
Collections and payments from our customers are continuously monitored and a credit loss provision is maintained
to cover any specific customer credit losses anticipated.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9
3.1. CREDIT RISK MANAGEMENT (CONTINUED)
The Group has performed an assessment of credit risk on its customer base taking into consideration the factors below:
• profile of the customer, i.e. corporate or individual customers
• region the customer is based in
• industry the customer operates within
• size and nature of the customer
• and, the Group’s understanding of and experience with the customer
As a result of this assessment, the Group has assessed its baseline provision to $1,152,000 (2020: $934,000), to reflect the
estimated financial impact of its assessment of the credit risk.
3.2. INTEREST RATE RISK
The Group’s main interest rate risk arises from long term borrowing with variable rates which exposes the Group to cash
flow interest rate risk. The Group adopts a policy of ensuring that some of its exposure to changes in interest rates on
borrowings is on a fixed rate basis by entering into interest rate swaps.
The table below summarises the Group’s current interest rate swaps:
Date effectiveFace valueMaturity dateInterest rate paid
8 July 201920,000,0008 July 20241.59% p.a.
The Group does not hedge account so all market adjustments are recognised in the Statement of Profit or Loss & Other
Comprehensive Income. As part of refinancing, the swap was novated to the ANZ Bank Limited and the interest rate is
now 1.625% p.a. (refer note 21).
Sensitivity analysis
The effect of a 1% increase or decrease in the floating interest rates for the Group would be a decrease/increase in profit
and equity of $575,000 (2020: $663,000).
3.3. LIQUIDITY RISK
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, the Group
maintains flexibility in funding through having flexible funding lines available to them. Management monitors rolling
forecasts of the Group’s liquidity reserve, which comprises its undrawn borrowing facility and cash and cash equivalents
(note 12.1) on the basis of expected cash flows.
The Group had access to the following undrawn borrowing facilities at the end of the reporting period:
2021
$000
2020
$000
Expiring within one year (bank overdraft)
2,00010,000
Total2,00010,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10
3.3. LIQUIDITY RISK (CONTINUED)
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal
their carrying balances or the impact of discounting is not significant.
Less than 1
year
Between 1
and
2 years
Between 2
and
5 years
Beyond 5
years
Total
contractual
cash flows
Carrying
amount
(assets)/
liabilities
$000$000$000$000$000$000
2020
Borrowings9,15078,6523,025-90,82786,263
Lease liabilities33,17930,28766,55486,556216,576173,482
Trade and other
payables
27,050---27,05027,050
Employee entitlements14,208---14,20814,208
Total83,587108,93969,57986,556348,661301,003
2021
Borrowings69,7179662,059-72,74270,163
Convertible note4104101,162-1,9828,229
Lease liabilities34,50931,48064,40380,748211,140171,528
Trade and other
payables
31,840---31,84031,840
Employee entitlements12,524---12,52412,524
Total 149,00032,85667,62480,748330,228294,284
The Group provides guarantees, these are detailed in note 17.
3.4. CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they
can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group monitors capital on the basis of the gearing ratio and bank covenant compliance. The Group’s gearing ratio at
30 June 2021 is as follows:
2021
$000
2020
$000
Bank borrowings70,16386,263
Convertible note8,229-
Less: cash and cash equivalents(13,214)(11,882)
Net debt (excluding lease liabilities)65,17874,381
Equity37,96736,926
Gearing ratio63.2%66.8%
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 11
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
a. Estimated impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment. The recoverable amounts of cash-generating
units have been determined based on value-in-use calculations. These calculations require the use of estimates. Refer to
note 13.3 for further details.
b. Working capital
The Group has a negative working capital balance. Management note the impact of the current lease liability on the
current liability balance and consider that there are assets available to meet the Group’s liabilities as they fall due. In
addition, the Group notes the classification of debt as current and its use of the going concern basis given refinancing
(refer note 12.6). Given the liability profile, aspects of the balances presented as current liabilities will be funded by the
ongoing future activities of the business and new funding arrangements.
c. Valuation of convertible note
In May 2021 the Group issued convertible notes of $8.2m which included an embedded derivative component. The fair
value of this derivative is considered an estimate in the financial statements (refer note 12.7).
5. RECONCILIATION TO GAAP MEASURE
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“GAAP”) and
comply with International Financial Reporting Standards (“IFRS”).
These financial statements include non-GAAP financial measures that are not prepared in accordance with IFRS. The
non-GAAP financial measures used in this presentation are as follows:
• EBITDA (a non-GAAP measure) represents profit before income taxes (a GAAP measure), excluding interest
income, interest expense, depreciation and amortisation, share of loss of associates, bargain on acquisition,
impairment of investment in associates, deferred consideration, asset impairment and acquisition related costs
(non operating expenses) and advisor costs as reported in the financial statements.
• EBIT (a non-GAAP measure) represents profit before income taxes (a GAAP measure), excluding interest
income, interest expense, share of loss of associates, bargain on acquisition, impairment of investment in
associates, deferred consideration, asset impairment and acquisition related costs (non operating expenses) and
advisor costs as reported in the financial statements.
The Group believes that these non-GAAP measures provide useful information to readers to assist in the understanding
of the financial performance and position of the Group as they are used internally to evaluate the performance of
business units and to establish operational goals. They should not be viewed in isolation, nor considered as a subsitute for
measures reported in accordance with IFRS. Non-GAAP measures as reported by the Group may not be comparable to
similarly titled amounts reported by other companies.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 12
5. RECONCILIATION TO GAAP MEASURE (CONTINUED)
The following is a reconciliation between these non-GAAP measures and net profit after tax:
Reconciliation to GAAP measure 12 months to
June 2021
$000
12 months to
June 2020
$000
Profit Before Income Tax (GAAP measure)2,0313,495
Add back:
Share of loss of associates 14986
Finance costs11,22611,824
Impairment of investment in associates95440
Other non operating expenses
- Asset impairment1,133-
- Acquisition related costs318104
Bargain on acquisition-(1,106)
Depreciation & amortisation 46,36242,902
Deferred consideration and advisor costs expensed -(225)
EBITDA (non-GAAP measure) 61,31457,520
Reconciliation to GAAP measure 12 months to
June 2021
$000
12 months to
June 2020
$000
Profit Before Income Tax (GAAP Measure)2,0313,495
Add back:
Share of loss of associates 14986
Finance costs (net)11,22611,824
Impairment of investment in associates95440
Other non operating expenses
- Asset impairment1,133-
- Acquisition related costs318104
Bargain on acquisition-(1,106)
Deferred consideration and advisor costs expensed-(225)
EBIT (non-GAAP measure) 14,95214,618
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 13
6. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision
Maker (CODM). The CODM is responsible for allocating resources and assessing performance of the operating segments.
The Group has made the decision that the thirteen operating segments that form part of the reporting to the Group CEO
can be aggregated into six reporting segments. Reportable segments have been determined by having regard to the
nature of the services, the processes the various business units undertake to service customers, the type of customers
serviced, and the nature of the distribution channels.
In addition to GAAP measures, the Group CEO also uses non-GAAP measures (EBITDA and EBIT) to assess the commercial
performance of the segments (refer note 5). The revised reportable operating segments have been determined as:
INTERNATIONAL
This segment includes international freight forwarding and shipping agency services across a broad range of industries.
SPECIALIST
This segment provides transport and lifting solutions for oversized and large items. They also carry out specialist moving
jobs.
FREIGHTING
This segment provides nationwide general freight transport services with regional strength. It is able to transport a wide
range of freight types.
WAREHOUSING & LOGISTICS
This segment specialises in warehousing and supply chain capabilities which enable comprehensive supply chain
solutions to customers.
BULK LIQUIDS
This segment includes the service for delivery of various bulk liquid goods.
CORPORATE
This segment includes our corporate services function.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14
6. SEGMENT INFORMATION (CONTINUED)
The segment information for the year ended 30 June is as follows:
InternationalSpecialistFreightingWarehousing
& Logistics
Bulk LiquidsCorporate Total
$000$000$000$000$000$000$000
Year ended 30 June 2020
Total segment revenue 8,97618,722168,17673,55678,798-348,228
Inter-segment revenue (4)(312)(6,949)(2,245)(4,907)-(14,417)
Revenue from external customers 8,97218,410161,22771,31173,891-333,811
EBITDA2,5635,36416,93321,52313,919(2,782)57,520
Depreciation - tangible assets1071,9595,6592,6331,58124512,184
Depreciation - ROU assets1177189,25112,8615,41210128,460
Depreciation - intangible assets19-291,851-3592,258
EBIT2,3202,6871,9944,1786,926(3,487)14,618
Assets7,94725,932143,200110,95742,18014,482344,698
Liabilities4,1733,902104,78377,25633,07884,580307,772
Capital expenditure including
intangibles
5012,3425,9833,0482,5782,71317,165
Year ended 30 June 2021
Total segment revenue 8,24224,301181,21973,89282,862-370,516
Inter-segment revenue (9)(182)(12,226)(162)(4,690)-(17,269)
Revenue from external customers 8,23324,119168,99373,73078,172-353,247
EBITDA2,0756,83317,61823,97014,456(3,638)61,314
Depreciation - tangible assets1462,0705,8902,6491,52430212,581
Depreciation - ROU assets23297110,42814,3555,32416131,471
Depreciation - intangible assets156121,840-4012,310
EBIT1,6963,7361,2885,1267,608(4,502)14,952
Assets11,47127,419136,775114,25735,11212,858337,892
Liabilities7,1377,141100,39180,79828,75475,704299,925
Capital expenditure including
intangibles
1792871,7142,0212,2107497,160
Interest income and expense are not allocated to segments, as this type of activity is driven by the central treasury
function, which manages the cash position of the Group.
Sales between segments are eliminated on consolidation. The amounts provided to the CODM with respect to segment
revenue are measured in a manner consistent with that of the financial statements.
Revenues of approximately $46,500,000 (2020: $43,800,000) are derived from a single external customer which exceeds 10%
or more of our entity’s revenue. These revenues are attributed to the Bulk Liquid segment.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 15
7. REVENUE & OTHER SOURCES OF INCOME
Revenue comprises the fair value of the consideration received or receivable for the sale of services in the ordinary
course of the Group’s activities. Revenue is shown net of GST, rebates and after eliminating sales within the Group.
a. Sale of services
Freight Services
The Group performs transportation services. Revenue is recognised over the time of delivery, being from the time of
acceptance of the goods to delivery to the final destination.
Warehousing Services
The logistics function provides warehousing and storage services. Revenue from providing these services is recognised in
the accounting period in which the services are rendered. Some contracts include multiple deliverables. However, these
are easily identifiable and are accounted for as separate performance obligations.
Trading Services
The Group performs freight forwarding and shipping agency services. Revenue is recognised over the time of delivery,
being from the time of acceptance of the job to completion of the shipment. Revenue is recognised on a net basis after
disbursements as the Group are acting as an agent for the customer.
For fixed priced contracts, revenue is recognised based on the actual service provided to the end of the reporting period
as a proportion of the total services to be provided. This is because the customer receives and uses the benefits of the
service simultaneously.
Customers are invoiced on a daily, weekly or monthly basis and consideration is payable when invoiced. There are no
significant financing arrangements for any of the Group’s revenue streams. The Group does not offer any refunds or
warranties.
The Group derives the following types of revenue:
2021
$000
2020
$000
Freight295,463277,881
Warehousing48,13045,809
Trading9,65410,121
Total Revenue353,247333,811
Timing of revenue recognition
June 2021June 2020
$000$000
Over time
353,247333,811
At a point in time
--
Total Revenue
353,247333,811
b. Interest income
Interest income is recognised on a time-proportion basis using the effective interest method.
c. Dividend income
Dividend income is recognised when the right to receive payment is established.
d. Lease income
Lease income from operating leases where the Group is a lessor is recognised as rental income on a straight-line basis
over the lease term.
e. Financing component
The Group does not expect to have any contracts where the period between the transfer of the promised service to the
customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the
transaction prices for the time value of money.
f. Contract liability
The Group recognises a contract liability (deferred revenue) when the Group has received consideration for performance
obligations yet to be fulfilled. The opening balance has been recognised in revenue in the current year. In the current
year, there was $361,000 of revenue recognised relating to contract liabilities at the prior year end. The average timing
of satisfaction of performance obligation in relation to the payment of the contract liability is between 1 and 5 days.
Management expects that 100% of the revenue (transaction price) allocated to unsatisfied performance obligations as of
30 June 2021 will be recognised as revenue during the next reporting period ($504,000).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 16
7. REVENUE & OTHER SOURCES OF INCOME (CONTINUED)
g. Government grants
Grants from the Government are recognised at their fair value where there is reasonable assurance that the grant will be
received, and the Group will comply with the attached conditions.
COVID-19 wage subsidy grants of $267,000 (2020: $10,723,000) are included in the ‘other income’ line item. There are no
unfulfilled conditions or other contingencies attached to these grants. The Group did not benefit directly from any other
forms of government assistance. Government grants relating to income are deferred and recognised in profit or loss over
the period necessary to match them with the conditions that they are intended to compensate.
8. OPERATING EXPENSES BY NATURE
2021
$000
2020
$000
Transport costs
1
136,891132,718
Employee costs (note 8.1)127,609125,309
Property lease expenses5741,129
Operation lease expenses2,8853,985
Trading and warehousing expenses5,0216,002
Communications5,8604,892
Occupancy costs6,6546,118
Travel and accommodation3,9833,378
Bad debts193393
Foreign exchange loss2437
Remuneration paid to principal auditors (PwC)
Assurance services
Audit and review of financial statements, including associated disbursements325353
Non-assurance services
Other advisory services related to:
-Remuneration benchmarking-19
-Taxation services38-
Donations1820
Directors fees 430398
Depreciation and amortisation46,36242,902
Impairment of investment in associates95440
Net change in contingent consideration and advisor costs-(225)
Non operating expenses
2
1,413104
Share based payments57-
Other expenses4,9684,638
Total operating expenses343,400332,610
1
Includes costs relating to transportation including road user charges (RUC), fuel, tyres, repairs and maintenance, owner driver and subcontractor costs.
2
Non operating expenses are shown net of PwC non assurance services of $38,000 in this note as required by NZ IFRS. Total non operating expenses including this
amount are $1,451,000 (refer note 5).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 17
8.1. EMPLOYEE COSTS
a. Superannuation benefits
The Group operates a defined contribution superannuation scheme. The scheme is funded through employee and Group
contributions to a trustee-administered fund. The Group has no further payment obligations once contributions have
been paid. Contributions are recognised as an employee benefits expense when they are due.
MOVe Freight Limited has a historic defined contribution company superannuation scheme that has been operating for a
number of years. The Company has contribution rates from 4% - 10%.
Members contribute a minimum of 4% of their salary/wage and can go as high as 15%. The Company contributions are
vested to the member at the rate of 20% per year of service with the Company i.e. 100% after five years of service.
b. Other employee benefits
Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave are expected to be
settled within 12 months. They are measured at the amounts expected to be paid when the liabilities are settled.
c. Long service leave
The liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service. They are therefore measured at the present value
of expected future payments to be made in respect of services provided by employees up to the end of the reporting
period. Consideration is given to expected future wage and salary levels, experience of employee departures and periods
of service. Expected future payments are discounted using market yields at the end of the reporting period of high-quality
corporate bonds with terms and currencies that match, as closely as possible, the estimated future cash outflows. Re-
measurement as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or
loss.
d. Profit-sharing and bonus plans
The Group recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into
consideration the profit attributable to the Company’s shareholders after certain adjustments. The Group recognises a
provision where contractually obliged or where there is a past practice that has created a constructive obligation.
2021
$000
2020
$000
Wages, salaries & leave costs120,244118,043
Superannuation fund contributions2,9792,806
Other employee related costs4,3864,460
Total127,609125,309
9. INCOME TAX EXPENSE
The tax expense for the year comprised current and deferred tax. Tax is recognised in the profit or loss component of the
Statement of Profit or Loss & Other Comprehensive Income except to the extent that it relates to items recognised directly
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or equity respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the Company and its subsidiaries operate and generate taxable income.
2021
$000
2020
$000
Current tax on profit for the year(1,463)(1,760)
Adjustments in respect to prior years(26)(46)
Deferred tax762822
(727)(984)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 18
9. INCOME TAX EXPENSE (CONTINUED)
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense
in the financial statements as follows:
2021
$000
2020
$000
Profit before income tax2,0313,495
Add back:
Contingent consideration-(225)
Impairment of investment in associates95440
Share of loss of associates14986
Bargain on acquisition-(1,106)
2,2752,690
Prima facie tax (payable) at 28%(637)(753)
Tax effects of:
Expenses not deductible(64)(185)
Prior year adjustment(26)(46)
Income tax expense(727)(984)
Imputation credits
2021
$000
2020
$000
Imputation credits available for use in subsequent periods7,5605,028
Refer note 21 for subsequent events in relation to imputation credits.
10. DIVIDENDS PAID AND PROPOSED
Dividends to the company shareholders are recognised in the Group’s financial statements in the period in which the
dividends are declared.
No dividends have been declared or recognised in the current year (2020: nil).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 19
11. EARNINGS PER SHARE
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is computed based
on the weighted average number of ordinary shares outstanding during the period. Diluted EPS is computed based on
the weighted average number of ordinary shares plus the effect of dilutive potential ordinary shares outstanding during
the period.
12 months to 30
June 2021
12 months to 30
June 2020
$000$000
Profit attributable to the owners for the year
869
2,015
Weighted average number of shares
87,684,882
87,363,352
CentsCents
Basic & diluted earnings per share 0.992.31
12. FINANCIAL ASSETS AND FINANCIAL LIABILITIES
The Group classifies its financial assets at amortised cost. The classification depends on the purpose for which the
financial assets are held. Management determines the classification of its financial assets at initial recognition.
Financial assets are included in current assets, except for those with maturities greater than 12 months after the
reporting date which are classified as non-current assets. The Group’s financial assets comprise ‘Trade and other
receivables’, ‘Cash and cash equivalents’ and ‘Advances to associates’ in the Balance Sheet. Financial assets that are
stated at amortised cost are reviewed individually at balance date to determine whether there is objective evidence of
impairment. Any impairment losses are recognised in profit or loss in the statement of comprehensive income.
This note provides information about the Group’s financial instruments, including:
• An overview of all financial instruments held by the Group
• Specific information about each type of financial instrument
• Information about determining the fair value of the instruments, including judgements and estimations of
uncertainty involved.
The Group holds the following financial instruments:
AMORTISED COST
Financial AssetsNotes
2021
$000
2020
$000
Cash and cash equivalents
12.1
13,21411,882
Trade and other receivables
1
12.2
48,23942,039
Advances to associates
12.3
218305
Total61,67154,226
1
excluding prepayments
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20
12. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
FINANCIAL LIABILITIES AT AMORTISED COST
Financial LiabilitiesNotes
2021
$000
2020
$000
Trade Payables
1
12.4
30,42526,031
Employee entitlements
12.5
12,52414,208
Borrowings
12.6
70,16386,263
Convertible note
12.7
8,229-
Total121,341126,502
1
excluding non-financial liabilities
The Group’s exposure to various risks associated with the financial instruments is discussed in note 3. The maximum
exposure to credit risk at the end of the reporting period is the carrying amount of each class of financial assets
mentioned above, other than for trade and other receivables where the maximum credit risk is the balance before
impairment, being $49,391,000 (2020: $44,991,000 ).
12.1. CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash on hand, deposits held on call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities on the Balance Sheet.
Cash and cash equivalents include the following for the purpose of the cash flow statement:
2021
$000
2020
$000
Cash13,21411,882
Bank overdrafts (undrawn, refer note 3.3)--
Total13,21411,882
12.2. TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method less provision for expected credit loss.
The Group assesses on a forward looking basis the expected credit losses associated with trade receivables carried at
amortised cost. The Group applies the simplified approach permitted by NZ IFRS 9, which requires expected lifetime losses
to be recognised from initial recognition of the receivables. Impairment of trade receivables is recognised in profit or loss.
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation,
and default or delinquency in payments are considered indicators that the trade receivable has been impaired. The
amount of the provision is the difference between the asset’s carrying amount and the present value of the estimated
future cash flows, discounted at the original effective interest rate.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21
12.2. TRADE AND OTHER RECEIVABLES (CONTINUED)
2021
$000
2020
$000
Trade receivables47,29043,642
Trade receivables related parties 12898
Less expected credit loss (refer note 3.1(a))(1,152)(2,952)
Net trade receivables46,26640,788
Accrued revenue1,476717
Sundry receivables497534
Financial assets at amortised cost48,23942,039
Prepayments1,5151,672
Total trade and other receivables49,75443,711
Trade receivables are generally due for settlement within 30 to 90 days.
12.3. ADVANCES TO ASSOCIATES
2021
$000
2020
$000
Eamonn Stephen Farrell-88
UNITE Logistics Limited
1
218217
Total218305
1
The advance with UNITE Logistics Limited is due on demand and is non-interest bearing.
12.4. TRADE AND OTHER PAYABLES
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
2021
$000
2020
$000
Trade payables19,94516,851
Trade payables related parties164181
GST payable1,4151,019
Lease incentive461121
Accrued expenses9,8558,878
Total31,84027,050
Trade payables are unsecured and are usually paid within 30 to 60 days of recognition.
12.5 EMPLOYEE ENTITLEMENTS
2021
$000
2020
$000
Leave provision8,5878,343
Salary and wage accruals3,9375,865
Total12,52414,208
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22
12.6. BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost using the effective interest method. Any borrowings are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Borrowing costs are expensed as incurred, unless they relate to the acquisition, construction or production of a
qualifying asset in which case the borrowing costs are capitalised.
The ASB Bank Limited (ASB) facilities include a $65m revolving committed cash facility, an overdraft facility of $2m, a
term loan of $1.5m and bank guarantee’s totalling $10.8m (refer note 3.3).
30 June
2021
$000
30 June
2020
$000
Non-Current
Secured loan ASB -76,488
Secured loan Mainland Capital / De Lage Landen564
Secured loan Toyota Finance2,8063,611
2,81180,163
Current
Secured loan ASB 66,4885,259
Secured loan Mainland Capital / De Lage Landen5972
Secured loan Toyota Finance805769
67,3526,100
Total secured borrowings70,16386,263
The ASB facilities are secured by way of a first ranking security over the Group’s assets and undertakings.
Toyota Finance Limited holds a registered security over the motor vehicles that relate to the assets used as security for
the ATL Limited acquisition.
The Group is required to comply with a number of financial covenants. These are as follows:
• Leverage Ratio of <3.5x
• Interest Cover Ratio of >3.0x
• Debt Service Cover Ratio of >1.2x
• Operating Leases Commitments for fleet & equipment are <$70m
The Group has fully complied with the reset covenants and undertakings to 30 June 2021.
Subsequent to year end, as a result of the 30 June 2022 expiry of its current facility with the ASB the Group has
negotiated new facilities with ANZ Bank Limited (ANZ) and UDC Finance Limited (UDC). These facilities include:
• ANZ - $27.5m 3 year term loan facility
• ANZ - $5m overdraft facility
• ANZ - $10.8m bank guarantees
• UDC - $37.5m 5 year asset based loan
Based on forward looking forecasts and the financial covenants agreed with the ANZ and UDC the Group is expected
to comply with the financial covenants for at least 12 months from the date of signing the financial statements.
Accordingly, the consolidated financial statements are prepared on a going concern basis (refer note 21).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 23
12.7 CONVERTIBLE NOTE
Convertible notes are comprised of two elements: a debt note liability component and an embedded derivative
component. At the inception, the fair value of the host liability portion of the convertible notes is determined as being the
difference between the proceeds and the fair value of any identifiable derivative contained within the note. This amount
is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the notes.
The fair value of the embedded derivative component is calculated through a valuation model using a variety of
assumption, with the residual value assigned to the debt host components. The estimates and associated assumptions
are based on various factors that are believed to be reasonable under the circumstances, the results for which form
the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. No gain or loss on fair value changes is recognised on inception.
Valuation of the embedded derivative is calculated at each year end, with any gain or loss recognised in the
consolidated statement of comprehensive income.
The debt liability component is subsequently carried at amortised cost.
Embedded derivatives
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at each reporting
date.
An embedded derivative is a component of a hybrid contract that also includes a non-derivative host (e.g. convertible
notes). Derivatives embedded in hybrid contracts that are financial liabilities are treated as separate derivatives when
they meet the definition of a derivative, their risks and characteristics are not closely related to the host contract and the
host contract is not measured at fair value through profit or loss.
In May 2021 the Group issued $8.2m (2020: $0) of mandatory convertible notes. Each note has a principal amount of $50k
with a maturity date of 30 April 2026. Note holders may elect to convert their notes prior to maturity however this cannot
occur before 1 May 2023. Upon maturity all outstanding notes will be converted to shares at a variable rate based on a
10% discount to the market price.
Interest of 5% per annum is paid quarterly on the convertible notes.
The conversion option of the convertible note represents an embedded derivative which is separated from the debt host
contract on initial recognition and measured through the profit and loss. The debt component is held at amortised cost
and on initial recognition is offset by the fair value of the conversion element, this is incorporated in the effective interest
which is recognised over the term of the convertible note.
The movement in the carrying value of the convertible notes liability is as follows:
2021
$000
2020
$000
As at 1 July--
Proceeds of issue of convertible note8,200-
Capitalised interest costs using the effective interest method(832)-
Fair value of embedded derivative liability at date of issue27-
As at 30 June7,395-
The movement in the carrying value of the convertible note derivative liability is as follows:
2021
$000
2020
$000
As at 1 July--
Fair value of embedded derivative liability at date of issue832-
Fair value movement2-
As at 30 June834-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24
12.8 RECOGNISED FAIR VALUE MEASUREMENTS
Fair value reflects the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction.
Financial instruments are classified at either amortised cost or fair value through profit or loss.
Financial instruments which are measured subsequent to initial recognition at fair value are classified under the three-
level hierarchy based on the level that the fair value is observable:
• Level 1: based on quoted prices in an active market for identical assets and liabilities
• Level 2: based on inputs other than quoted prices included with level 1 that are observable for the asset or liability,
either directly or indirectly
• Level 3: based on valuation techniques that include inputs which are not observable
The following tables provide the fair value measurement hierarch of the Group’s liabilities:
Level 1Level 2Level 3Total
$000$000$000$000
At 30 June 2020
Convertible notes - derivative----
At 30 June 2021
Convertible notes - derivative--834834
For financial assets and liabilities measured at fair value at the end of the reporting period, limited to the derivative
components of the convertible notes, the following table gives information about how the fair value was determined:
Financial asset
and liability
Valuation
technique and
key inputs
Significant unobservable
inputs
Relationship and
sensitivity of
unobservable inputs to
fair value
Convertible notes -
derivative
Valuation model
based on market
price, optimal
conversion date
and discount
rate
The significant
unobservable inputs are
the current share price,
expected conversion
date and discount rate
applied.
The volume weighted
average market price was
valued at $1.11 as at 30
June 2021.
The optimal conversion
date used was 30 June
2023.
This discount rate applied
at 30 June 2021 was
4.5%.
The higher the volume
weighted average
market price the more
valuable the options
become. The convertible
notes convert based
a fixed discount on
the share price at
conversion. An increased
in the market share
price of plus or minus
10% would not have a
notable impact of the
contract due to the
options converting at a
fixed discount on market
price.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 25
13. NON-FINANCIAL ASSETS AND LIABILITIES
This note provides information about the Group’s non-financial assets and liabilities, including specific information about
each type of non-financial asset and non-financial liability:
• Property, plant and equipment (note 13.1)
• ROU assets and lease liabilities (note 13.2)
• Intangible assets (note 13.3)
• Deferred tax balances (note 13.4)
• Provisions for other liabilities and charges (note 13.5)
Impairment of non-financial assets
Goodwill, indefinite-life intangible assets and intangible assets that are not yet ready for use are tested annually for
impairment. Assets that are subject to depreciation and amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to dispose and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-
financial assets, other than goodwill, that suffered an impairment are reviewed for possible reversal of the impairment at
each reporting date.
13.1. PROPERTY, PLANT AND EQUIPMENT
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance
are charged to profit or loss during the financial period in which they are incurred.
Depreciation on assets is calculated using the diminishing value (DV) or straight-line (SL) method.
Years
Depreciation
rate
Method
Plant and equipment - leasehold improvements1 - 162.5% - 50%SL/DV
Motor vehicles - trucks 0.5 - 14-SL
Motor vehicles - trailers0.5 - 18 -SL
Plant and equipment 1 - 307.5% - 67%SL/DV
Motor vehicles - other1 - 2513% - 30%SL/DV
Office equipment 1.5 - 148% - 67%SL/DV
Furniture and fittings0.5 - 144% - 67%SL/DV
Leased assets1 - 12 -SL
Land and buildings0% - 30%DV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 26
13.1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The assets’ useful lives are reviewed, and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within ‘Gains on disposal of assets’ in the Statement of Profit or Loss & Other Comprehensive Income.
Land and
buildings
Motor
vehicles
Office
equipment
and F&F
Plant and
equipment
Work in
progress
Total
$000$000$000$000$000$000
At 1 July 2019
Cost604156,1384,27820,727801182,548
Accumulated depreciation(260)(77,757)(2,806)(9,412)-(90,235)
Net book amount34478,3811,47211,31580192,313
Year ended 30 June 2020
Additions-4,3395661,1218,94814,974
Acquisition of subsidiaries-5,0087361-5,142
Disposals(23)(1,497)(1)(101)(4,394)(6,016)
Transfers-1,97261,004(2,982)-
Depreciation charge(10)(9,510)(591)(2,073)-(12,184)
Closing net book amount31178,6931,52511,3272,37394,229
At 1 July 2020
Cost 580163,3834,91822,8792,373194,133
Accumulated depreciation(269)(84,690)(3,393)(11,552)-(99,904)
Net book amount31178,6931,52511,3272,37394,229
Year ended 30 June 2021
Additions-2,8225091,5461,9076,784
Acquisition of subsidiaries-203---203
Disposals-(781)-(24)(45)(850)
Transfers-2,218631,634(3,915)-
Depreciation charge(8)(9,830)(564)(2,179)-(12,581)
Closing net book amount30373,3251,53312,30432087,785
At 30 June 2021
Cost580155,9445,49125,788320188,123
Accumulated depreciation(277)(82,619)(3,958)(13,484)-(100,338)
Closing net book amount30373,3251,53312,30432087,785
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27
13.2. ROU ASSETS AND LEASE LIABILITIES
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• fixed payments, less any lease incentives receivable and
• variable lease payments that are based on an index or a rate.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined,
the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.
Right of use assets are measured at the amount equal to the lease liability, adjusted by the amount of any lease
incentives received or restoration costs estimated. There were no onerous lease contracts that would have required an
adjustment to the right of use assets at the date of initial application. These assets are subsequently depreciated using
the straight-line method.
Lease liabilities are measured at the present value of the remaining lease payments, discounted using the lessee’s
incremental borrowing rate. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities is
4.49% (2020: 4.48%).
The Group uses a build up approach that starts with a risk free interest rate adjusted to reflect changes in credit risk for
leases held by the Group and then makes specific adjustments for lease terms.
During the year, the Group applied the following practical expedients:
• the accounting for operating leases with a remaining lease term of less than 12 months as short-term leases
• the use of historical experience in determining the lease term where the contract contains options to extend or
terminate the lease
• recognising rental concessions obtained as a direct result of the COVID-19 pandemic as a reduction to rental
expenses in the Statement of Profit or Loss and Other Comprehensive Income
The recognised right of use assets relate to the following types of assets:
20212020
Right of use assets$000$000
Opening net book value 1 July170,029-
Recognised on transition-177,992
Additions25,72317,818
Disposals(2,015)(149)
Modifications to leases2,5602,828
Depreciation for the period
- Property(20,510)(17,851)
- Motor vehicles(10,239)(9,923)
- Other(722)(686)
Closing net book value 30 June164,826170,029
Cost222,665198,411
Accumulated depreciation(57,839)(28,382)
Net book value 30 June164,826170,029
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 28
13.2. ROU ASSETS AND LEASE LIABILITIES (CONTINUED)
20212020
Right of use assets$000$000
At 30 June
Property129,641127,849
Motor vehicles32,89939,473
Other2,2862,707
Total right of use assets164,826170,029
Lease liabilities$000
Opening lease liabilities at 1 July 20173,482
Additions27,158
Interest for the period8,046
Lease payments made(36,145)
Disposals(4,501)
Modifications3,488
Lease liabilities at 30 June 2021171,528
Lease liabilities maturity analysisMinimum lease
payment
InterestPresent value
$000$000$000
Within one year34,5097,19927,310
One to five years95,88419,39276,492
Beyond five years80,74813,02267,726
Total211,14139,613171,528
Current lease liabilities34,5097,19927,310
Non-current lease liabilities176,63232,414144,218
Total211,14139,613171,528
20212020
Lease liabilities$000$000
At 30 June
Current lease liabilities27,31025,882
Non-current lease liabilities144,218147,600
Total171,528173,482
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 29
13.2. ROU ASSETS AND LEASE LIABILITIES (CONTINUED)
Lease related expenses included in the Consolidated Statement of Profit & Loss & Other Comprehensive Income:
20212020
$000$000
For the year ended 30 June
Depreciation31,47128,460
Short term lease3,4595,114
Interest on leases8,0467,947
Total42,97641,521
13.3. INTANGIBLE ASSETS
a. Goodwill
Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree, and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the
Group’s share of the identifiable net assets acquired. Goodwill on acquisitions of subsidiaries is included in ‘Intangible
assets’ in the Balance Sheet. Goodwill on acquisitions of associates is included in ‘Investments in associates’ in the
balance sheet and is tested for impairment as part of the overall balance. Separately recognised goodwill is tested
annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not
reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units or groups of cash-generating units that are expected to benefit from the business combination on
which the goodwill arose.
b. Computer software and Software-as-a-service (SaaS) arrangements
Acquired computer software is capitalised on the basis of the costs incurred to acquire and bring to use the specific
software. These costs are amortised, using the diminishing value method at a rate of 48% and recognised in the profit or
loss. Costs associated with maintaining computer software programmes are recognised as an expense when incurred.
SaaS arrangements are service contracts providing the Company with the right to access the cloud provider’s
application software over the contract period. Costs incurred to configure or customise, and the ongoing fees to obtain
access to the cloud provider’s application software, are recognised as operating expenses when the services are
received.
Some of these costs incurred are for the development of software code that enhances or modifies, or creates additional
capability to, existing on-premise systems and meets the definition of and recognition criteria for an intangible asset.
These costs are recognised as intangible software assets and amortised over the useful life of the software on a straight-
line basis. The useful lives of these assets are reviewed at least at the end of each financial year, and any change
accounted for prospectively as a change in accounting estimate.
c. Customer contracts and lists
Acquired customer contracts and lists are recognised at their fair value at the date of acquisition and are subsequently
amortised on a straight-line basis over six years. Amortisation expense is recognised in the profit or loss.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30
13.3. INTANGIBLE ASSETS (CONTINUED)
Goodwill
Computer
software
Work in
progress
Customer
lists
Total
$000$000$000$000$000
At 1 July 2019
Cost15,0203,776-10,13228,928
Accum. amortisation and impairment-(1,530)-(3,489)(5,019)
Net book amount15,0202,246-6,64323,909
Year ended 30 June 2020
Additions-312,160-2,191
Disposals--(21)-(21)
Transfers-(31)31--
Amortisation/impairment charge-(652)-(1,606)(2,258)
Closing net book amount 15,0201,5942,1705,03723,821
At 1 July 2020
Cost15,0203,7772,17010,13231,099
Accum. amortisation and impairment-(2,183)-(5,095)(7,278)
Net book amount15,0201,5942,1705,03723,821
Year ended 30 June 2021
Additions-62314-376
Acquisition of subsidiaries197--372569
Transfers-1,063(1,063)--
Amortisation/impairment charge-(665)(1,283)(1,645)(3,593)
Closing net book amount15,2172,0541383,76421,173
At 30 June 2021
Cost15,2174,90213810,50530,762
Accum. amortisation and impairment
-(2,848)-(6,741)(9,589)
Closing net book amount15,2172,0541383,76421,173
The Group has classified its goodwill into the following cash-generating units (CGUs):
2021
$000
2020
$000
MOVe Freight Limited
1,0271,027
Alpha Customs Limited776776
MOVe Logistics & Warehousing Limited
12,49212,492
TNL International Limited170170
MOVe (McAuleys) Limited
555555
TNL International Australia Pty Limited197-
Total15,21715,020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31
13.3. INTANGIBLE ASSETS (CONTINUED)
The Group tests goodwill for impairment using value in use calculations with cash flow projections based on a five-year
period. Management has prepared an upside, downside and base scenario for each CGU. Each of these include the three
years of Board approved cash flow projections with cashflows beyond this extrapolated using the assumptions as noted
below. The final value in use calculations for each CGU apply an assessed probability weighting to the three scenarios.
Management exercises judgement in confirming the carrying value of goodwill, considering a wide range of inputs
including the state of the industry and market movements. Management has concluded that there are no impairments
for any of the CGUs at 30 June 2021. The MOVe Logistics & Warehousing Limited and MOVe Freight Limited CGU’s have
significant goodwill balances at 30 June 2021.
The key assumptions for the value in use calculations of MOVe Logistics & Warehousing Limited and MOVe Freight Limited
CGU’s are summarised below:
Discount
rate post-
tax
Discount
rate pre-tax
Terminal
growth rate
Revenue
growth rate
year 1*
Revenue
growth rate
year 2*
Revenue
growth rate
year 3 - 5*
30 June 2020
MOVe Logistics &
Warehousing Limited
9.1%10.2%1.7%2.1%3.0%1.9% - 2.0%
MOVe Freight Limited
9.5%11.0%1.7%0.6%7.6%0.0% - 5.2%
30 June 2021
MOVe Logistics &
Warehousing Limited
9.5%11.6%2.0%5.3%2.8%0.0% - 2.0%
MOVe Freight Limited
9.5%12.0%2.0%2.7%5.6%0.0% - 5.6%
*Probability weighted
The discount rate represents the current market assessment of the risks specific to the CGU considering the time value of
money and individual risk of the underlying assets. The discount rate is calculated based on the specific circumstances
of the CGU and its operations and is derived from its weighted average cost of capital (WACC). The Group engaged an
independent third party to assess the post-tax weighted average cost of capital for each of the CGUs. These post-tax
discount rates were applied to post-tax cash flows.
The long-term growth rate is based on growth in GDP, market conditions and opportunities for growth within the industry
and is in line with the mid-point between long term GDP predictions and inflation (as measured by the consumer price
index).
The net right of use assets and lease liabilities have been included in the carrying amount of net operating assets that
have been tested for impairment for each of the CGUs.
Future revenue projections are based on assumed growth in sales to fill the additional capacity as a result of the new
warehouses and opportunities for growth in new and existing customers. Management have confidence in the strategy
to achieve this given the opportunities both internally and the demand within the market.
Based on the probability weighted value in use calculations, the recoverable amounts of the CGUs exceed their carrying
value at 30 June 2021 by the following amounts:
• MOVe Logistics & Warehousing Limited CGU: $25.1m
• MOVe Freight Limited CGU: $31.5m
In respect of the MOVe Logistics & Warehousing Limited and MOVe Freight Limited CGU’s any reasonable possible
change in the key assumptions used in the calculations would not cause the carrying values to exceed their recoverable
amounts.
Management has concluded that the goodwill balances at 30 June 2021 are not impaired (either using the probability
weighted case or any of the individual scenarios), although they will continue to monitor the position closely for any
evidence that the goodwill has become impaired.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32
13.4. DEFERRED INCOME TAX
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred income
tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax
is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle
the balances on a net basis.
Temporary differences arise from the following:
Deferred tax (liabilities)
Opening
balance
Recognised in
profit or loss
Acquisition of
subsidiaries
Closing
balance
$000$000$000$000
2020
Property, plant and equipment(6,528)(778)(355)(7,661)
Right of use assets / lease liability-967-967
Provisions and accruals2,426633393,098
Carry forward losses--256256
Total deferred income tax(4,102)822(60)(3,340)
2021
Property, plant and equipment(7,661)(347)(104)(8,112)
Right of use assets / lease liability967909-1,876
Provisions and accruals3,098200-3,298
Carry forward losses256--256
Total deferred income tax(3,340)762(104)(2,682)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 33
13.5. PROVISIONS FOR OTHER LIABILITIES AND CHARGES
Provisions for make good obligations are recognised when the Group has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated.
Provisions are measured at the present value of Management’s best estimate of the expenditure required to settle the
present obligations at the end of the reporting period.
Make good
lease provision
Legal claim
provision
Total
$000$000$000
At 1 July 2019767-767
Additional provisions1,5812941,875
Released to profit or loss(35)-(35)
At 30 June 20202,3132942,607
At 1 July 20202,3132942,607
Additional provisions298-298
Utilised / released to profit or loss(156)(294)(450)
At 30 June 20212,455-2,455
a. Information about individual provisions and significant estimates
Make good lease provision
The Group is required to restore the leased premises of its depot and warehouses to their original condition at the end of
the respective lease terms. A provision has been recognised for the estimated expenditure required.
14. SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax from the proceeds.
30 June 202130 June 2020
Shares$000Shares$000
Issued & paid-up capital - ordinary shares
Balance at the beginning of the period87,684,88237,05486,347,60835,449
Shares issued - dividend reinvestment plan--1,337,2741,605
Balance at the end of the period87,684,88237,05487,684,88237,054
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 34
15. CASH FLOW INFORMATION
15.1 CASH GENERATED FROM OPERATIONS
2021
$000
2020
$000
Reported profit after tax1,3042,511
Non-cash items
Gain on lease modification(121)-
Depreciation expense44,05140,644
Amortisation expense2,3112,258
Bad debts193393
Amortisation of bank fees168287
Contingent consideration-(225)
Bargain on acquisition-(1,106)
Impairment of investment in associates95440
Foreign exchange losses on operating activities2437
Non trading expenses1,283-
Share based payments57-
Cumulative translation adjustment(9)-
49,35645,239
Impact of changes in working capital
Tax receivable / deferred tax(1,776)(200)
Trade and other receivables(4,650)9,681
Creditors and accruals/employee entitlements1,291(12,092)
Creditors relating to purchase of PPE(547)(1,545)
Inventories13234
43,68741,317
Items classified as investing or financing activities
Profit on disposal of property, plant and equipment(617)(547)
Loss for associates14986
Net cash flow from operating activities43,21940,856
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35
15.2 NET DEBT RECONCILIATION
This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.
2021
$000
2020
$000
Cash and cash equivalents13,21411,882
Lease liability - repayable within one year(27,310)(25,882)
Borrowings - repayable within one year (including overdraft)(67,352)(6,100)
Lease liability - repayable after one year(144,218)(147,600)
Borrowings - repayable after one year(2,811)(80,163)
Convertible note - repayable after one year(8,229)-
Net debt(236,706)(247,863)
Cash and liquid investments13,21411,882
Liability - incremental borrowing rate(171,528)(173,482)
Borrowings - fixed interest rates(31,905)(24,517)
Borrowings - variable interest rates(46,487)(61,746)
Net debt(236,706)(247,863)
Liabilities from financing activities
Convertible
note
BorrowingsLeasesSubtotalCash/bank
overdraft
Total
$000$000$000$000$000$000
Net debt as at 1 July
2019
(84,317)-(84,317)6,389(77,928)
Recognised on
adoption of NZ IFRS 16
--(176,191)(176,191)-(176,191)
Cash flows-2,97122,95625,9275,49331,420
Acquisitions-(4,629)-(4,629)-(4,629)
Lease additions--(17,841)(17,841)-(17,841)
Other non-cash
movements
-(288)(2,406)(2,694)-(2,694)
Net debt as at 30
June 2020
-(86,263)(173,482)(259,745)11,882(247,863)
Cash flows(8,200)16,24236,14544,1871,33245,519
Lease additions--(27,158)(27,158)-(27,158)
Other non-cash
movement
(29)(142)(7,033)(7,204)-(7,204)
Net debt as at 30
June 2021
(8,229)(70,163)(171,528)(249,920)13,214(236,706)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 36
16. INTEREST IN OTHER ENTITIES
16.1 SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 2.1. All subsidiaries are incorporated in New Zealand.
All subsidiaries results up to 30 June 2021 have been incorporated in the consolidated financial statements.
SubsidiaryFormerly named
1
Shareholding
30 June 2021
Shareholding
30 June 2020
Balance
date
Principal activity
MOVe Freight Limited
TIL Freighting Limited100%100%30 JuneTransport operator
MOVe Fuel Limited
Pacific Fuel Haul Limited100%100%30 JuneTransport operator
Alpha Custom Services
Limited
-60%60%30 JuneInternational freight
forwarder
Pacific Asset Leasing
Limited
-100%100%30 JuneAsset leasing
MOVe International
Limited
Hookers Shipping Limited100%100%30 JuneShipping agent
and logistics
MOVe (McAuleys)
Limited
McAuley’s Transport
Limited
100%100%30 JuneTransport operator
MOVe Logistics &
Warehousing Limited
MOVE Logistics Limited100%100%30 JuneWarehousing and
distribution
Southern Fleet Leasing
Limited
-100%100%30 JuneAsset leasing
MOVe (NZL) Limited
NZL Group Limited100%100%30 JuneWarehousing and
distribution
TNL International Limited-50%50%30 JuneInternational freight
forwarder
Appian Transport Limited-100%100%30 JuneNon trading
Global Logistics Group
Limited
-100%100%30 JuneNon trading
MOVe Specialist Lifting
and Transport Limited
Specialist Lifting and
Transport Group Limited
100%100%30 JuneHeavy Haulage
TNL Logistics Limited-100%100%30 JuneNon trading
Transport Nelson Limited-100%100%30 JuneNon trading
MOVe Investments
Limited
Transport Investments
Limited
100%100%30 JuneCorporate services
Pacific Liquid Logistics
Limited
-100%100%30 JuneNon trading
MOVe (ATL) Limited
ATL Limited100%100%30 JuneTransport operator
TNL International
(Australia) Pty Limited
-40%23.75%30 JuneInternational freight
forwarder
1
Name changes occurred on 27th July 2021 (refer note 21).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 37
16.2 INTERESTS IN ASSOCIATES
Set out below are the associates of the Group as at 30 June 2021 which, in the opinion of the Directors, are material to
the Group. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by
the Group. The country of incorporation or registration is also their principal place of business, and the proportion of
ownership interest is the same as the proportion of voting rights held.
Place of
business/
country of
incorporation
% of ownership
interest
Nature of
relationship
Measurement
method
Investment in
associates
20212020
2021
$000
2020
$000
UNITE Logistics Limited
1
New Zealand50%50%Associate
Equity method
88353
Emerald Truck Services Limited
2
New Zealand50%33.3%AssociateEquity method329225
Total417578
1
UNITE Logistics Limited is a transport services provider for the Auckland and surrounding area’s construction industry, specialising in crane transport. This service
complements the Group’s current transport services. The balance date for this entity is March.
2
Emerald Truck Services Limited is an automotive repair workshop based in Masterton specialising in trucks and trailers. This service is strategic to the Group given
the material amount spent on repairs and maintenance. The balance date for this entity is June.
The Group’s results of its principal associates, all of which are unlisted, and total assets (including goodwill) and liabilities,
are as follows. The Group equity accounts for these associates based on management reporting for the year end to 30
June (the Group’s balance date).
UNITE Logistics
Limited
Emerald Truck
Services Limited
2021202020212020
$000$000$000$000
Summarised balance sheet
Current assets
946928900749
Non-current assets
1,6432,064441491
Current liabilities
955807380299
Non-current liabilities
1,6941,785143154
Net assets
(60)400818787
Summarised statement of comprehensive income
Revenue
7,0766,7522,8953,356
Profit after tax from continuing operations
(340)(136)3197
Investment carrying amount reconciliation
Opening balance
353876225193
Dividends received
----
Consolidation of associate
----
Acquisition
--88
1
-
Impairment of investment
(95)(309)--
Earnings from associates
(170)(214)1632
Closing balance
88353329225
1
On 10 July 2020, as a result of the shareholder default McAuley’s Transport Limited signed a buyout agreement of one of the shareholders of Emerald Truck Services
Limited. From 10 July 2020 McAuley’s Transport Limited holds 50% of the shares in Emerald Truck Services Limited and the consideration for the additional 17%
shareholding was transacted in exchange for the settlement of the outstanding shareholder loan
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 38
16.2 INTERESTS IN ASSOCIATES (CONTINUED)
MOVe Logistics Limited as part of its investment in UNITE Logistics Limited has provided the Bank of New Zealand a
guarantee for $500,000 plus one years interest in relation to the loan facility held by UNITE Logistics Limited.
Impairment of associates
UNITE Logistics Limited
During the year, UNITE Logistics Limited continued to be negatively impacted by COVID-19. As a result of its poor
performance and the ongoing uncertainty regarding its financial performance, Management have assessed that the
recoverable amount was below the carrying amount of its investment. As such there was an impairment loss recorded.
17. CONTINGENCIES
Bank Guarantee
The Group provides (via ASB Bank) the below guarantees.
2021
$000
2020
$000
Bank guarantees - property6,1872,787
Bank guarantees - fuel purchases4,5004,500
Bank guarantees - other7575
Total10,7627,362
18. CAPITAL COMMITMENTS
Capital expenditure contracted for at the reporting date but not yet incurred is as follows:
2021
$000
2020
$000
Trucks and trailers359-
Other assets122417
Total481417
19. RELATED-PARTY TRANSACTIONS
19.1 TRANSACTIONS WITH KEY MANAGEMENT
a. Key management compensation
Key management includes Directors, the CEO and his direct reports:
2021
$000
2020
$000
Salaries, short term and post employee benefits3,4742,848
Directors fees430398
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 39
19.2 TRANSACTIONS WITH OTHER RELATED PARTIES
The following transactions occurred with related parties:
2021
$000
2020
$000
Sales and purchases of goods and services
Sales of services to associates814988
Purchases of services from associates1,9862,821
Purchases from entities controlled by key management employees140123
2021
$000
2020
$000
Outstanding balances arising from sales and purchases of
services
Trade receivables 12898
Trade payables164181
The Group determines the above balances are fully collectible.
2021
$000
2020
$000
Advances to related parties
UNITE Logistics Limited217217
Eamonn Stephen Farrell-88
20. SHARE BASED PAYMENTS
Share-based payment reserve
The Group currently has a long-term incentive plan for selected employees. The plan’s participants are members of
the Executive team. The reserve is used to record the accumulated value of the plan which has been recognised in the
Statement of Profit or Loss & Other Comprehensive Income. The long-term incentive plan is an equity settled-share-
based payment which provides eligible employees with the opportunity to acquire shares in the Group. The fair value
of shares granted is recognised as an employee benefit expense with a corresponding increase in equity. The fair value
is measured at grant date and recognised over the vesting period. The fair value of the plan has been assessed by an
independent valuer.
Amounts accumulated in the employee share scheme reserve are transferred to share capital on redemption of the
redeemable shares or to retained earnings where they are forfeited. At the end of each reporting period the Group revises
its estimate of the number of redeemable shares that are expected to vest based on the non-market vesting conditions.
It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding
adjustment to the employee share scheme reserve.
Employee Long Term Incentive Plan
The establishment of the MOVe Logistics Group Long Term Incentive Plan was approved by the Directors on 1 July 2020.
The Employee Option Plan is designed to provide long-term incentives for Executives to deliver long-term shareholder
returns and to reward and retain key employees. Under the plan, participants are granted options which only vest if
certain performance standards are met. Participation in the plan is at the board’s discretion, and no individual has a
contractual right to participate in the plan or to receive any guaranteed benefits. If an employee participates in the
scheme, the value of the options received is part of the total remuneration, which is calculated relative to the market
based remuneration relevant for their role.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 40
20. SHARE BASED PAYMENTS (CONTINUED)
The amount of options that will vest depends on MOVe Logistics Group total shareholder returns (TSR) during a three year
vesting period greater than the 50th percentile of the NZX50 Group. The NZX50 Group compromises those companies
on commencement date. Once the hurdle is exceeded, the Share Rights that become Eligible Share Rights increase on
a straight-line basis from 50% being payable where the TSR is greater than the 50th percentile TSR of the NZX50 Group
to 100% where the TSR is equal to or greater than the 75th percentile TSR of the NZX50 Group. Once vested, the options
remain exercisable during the exercise period which will be advised on an eligibility notice.
Options are granted under the plan for no consideration and carry no dividends or voting rights.
The exercise price of options is based on the weighted average price at which the company’s shares are traded on the
New Zealand Stock Exchange for the prior 10 days up to and including the commencement date.
Set out below are summaries of options granted under the plan:
Average exercise
price per share
option
Number of
options
As at 30 June 2019--
Granted during the year--
Forfeited during the year--
As at 30 June 2020--
Vested and exercisable at 30 June 2020--
As at June 2020--
Granted during the year-920,966
Forfeited during the year-(39,180)
As at 30 June 2021$0.90881,786
Vested and exercisable at 30 June 2021--
Share options outstanding at 30 June have the following expiry dates and exercise prices:
Grant dateExpiry dateExercise price
Share options
30 June 2021
Share options
30 June 2020
9 October 2020 (2019 LTI)30 June 2022$1.33284,615-
9 October 2020 (2020 LTI)30 June 2023$0.70597,171-
Total881,786-
Weighted average remaining contractual life of
options outstanding at end of period
2.0 years-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 41
20. SHARE BASED PAYMENTS (CONTINUED)
Fair value of options granted
The assessed fair value at grant date of options granted during the year ended 30 June 2021 were $0.03 (expiry 30 June
2022) and $0.26 (expiry 30 June 2023) per option (2020: -). The fair value at grant date is independently determined using
an adjusted form of the Black-Scholes model which includes a Monte Carlo simulation model that takes into account the
exercise price, the term of the option, the share price at grant date and the expected volatility of the underlying share, the
expected dividend yield, the risk free rate for the term of the option, and the correlations and volatilities of the peer group
companies
The model inputs for options granted during the twelve months ended 30 June 2021 included:
• options are granted for no consideration and vest based on MOVe Logistics Group TSR ranking within a peer group
of 50 selected companies over a three year period
• exercise price - 2019 LTI: $1.33 and 2020 LTI: $0.70 (2019: nil)
• grant date - 9 October 2020 (2019: nil)
• expiry date – 2019 LTI: 30 June 2022 and 2020 LTI: 30 June 2023 (2019: nil)
• share price at grant date - $0.71 (2019: nil)
• expected volatility of the company’s shares - 27.9% (2019: nil)
• expected dividend yield - $0.05 per share (2019: nil)
• risk free interest rate – 2019 LTI: .15% and 2020 LTI: .11% (2019: nil)
The expected price volatility is based on the historical volatility (based on the remaining life of the options).
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the period as part of the employee
expenses were as follows:
June
2021
June
2020
$000$000
Options issues under employee option plan57-
57-
Subsequent to 30 June 2021 280,648 shares totalling $50,919 (of which $17,932 were expensed in the year to 30 June 2021)
have been forfeited due to an employee resignation.
21. EVENTS AFTER THE REPORTING DATE
On 1 July 2021 Chris Dunphy was appointed to the Board of Directors. On 27 July 2021 he assumed the role of Executive
Director following the resignation of the Group CEO on 20 July 2021.
On 2 July 2021 there was a significant shareholder sell down which resulted in a forfeit of imputation credits of $4,794,000
due to the change in shareholding continuity.
On 26 July 2021 the Group settled its new funding arrangement with ANZ bank and UDC Finance including bank
guarantees (refer note 12).
On 27 July 2021 Mark Newman was appointed to the Board of Directors.
On 27 July 2021 the Group re-branded and changed its legal name to MOVe Logistics Group Limited (including
subsidiaries). There was no change to business operations disclosed in note 1 & 16.
On 17 August 2021 the New Zealand Government reinstated Covid-19 Alert Level 4 for the whole of New Zealand. The
Alert Level 4 settings are applicable to the Auckland region until 31 August 2021 and for the rest of New Zealand until 27
August 2021. In response to the change in Alert levels, the majority of the Group’s operations continue to trade although
at reduced levels while in compliance with the New Zealand Government’s requirements. The full financial impact on the
Group is unknown at this stage however based on prior lockdowns and information available at present it is not deemed
to have a material impact on the 30 June 2021 reported results.
42
ANNUAL FINANCIAL STATEMENTS
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000,
www.pwc.co.nz
Independent auditor’s report
To the shareholders of MOVe Logistics Group Limited (formerly known as TIL Logistics Group
Limited)
Our opinion
In our opinion, the accompanying consolidated financial statements of MOVe Logistics Group Limited
(formerly known as TIL Logistics Group Limited) (the Company), including its subsidiaries (the Group),
present fairly, in all material respects, the financial position of the Group as at 30 June 2021, its
financial performance and its cash flows for the year then ended in accordance with New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial
Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
● the consolidated balance sheet as at 30 June 2021;
● the consolidated statement of profit or loss and other comprehensive income for the year then
ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended; and
● the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in the area of taxation advisory services. The
provision of these other services has not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
43
ANNUAL FINANCIAL STATEMENTS
PwC 2
Description of the key audit matter How our audit addressed the key audit matter
Goodwill impairment test
As at 30 June 2021, the Group had a
total goodwill balance of $15.2m, as
disclosed in note 13.3. This is allocated
across six cash generating units (CGUs).
MOV
e Logistics and Warehousing and
MOV
e Freighting are the two largest
CGUs representing $13.5m of the
balance. Accordingly, our procedures
were focused on these CGUs.
Management performed value-in-use
(VIU) impairment tests at 30 June 2021
using a discounted cash flow model based
on probability-weighted forecast cash
flows for both these CGUs and
determined that there was no impairment
of goodwill required. Key estimates and
assumptions in the VIU models include
the discount rates and long-term growth
rates used in the impairment model
The goodwill impairment tests for the
MOV
e Freighting and MOVe Logistics
and Warehousing CGUs are considered a
key audit matter due to the significant
level of management judgement applied in
estimating future cash flows and other key
assumptions in determining the
recoverable amount of these CGUs.
We obtained the impairment tests prepared by
Management and understood the process undertaken
to prepare the forecasts and the assumptions used.
We considered management's assessment of the
respective CGUs in the Group and the allocation of
corporate assets to the CGUs.
We gained an understanding of the current and
forecast outlook for the industry and CGUs and for the
strategic direction of the business. Our understanding
was facilitated by meetings with management during
the year.
We benchmarked the forecasts used within the
impairment models against historical actual trading
results, taking into account the impact of the Covid-19
pandemic to assess that growth rates used in the
model were reasonable.
We assessed the reliability of management's
forecasting process in previous years and considered
the impact on the assessment of forecast earnings.
We ensured the mathematical accuracy of the models
used ensuring that they utilised the assumptions
disclosed and that the recoverable amount calculated
was greater than the carrying amount of the CGU.
We engaged an auditor’s expert to assist us in
assessing and challenging whether the assumptions
used in the model were reasonable.The key areas
assessed included:
● the valuation methodology used;
● the reasonableness of the discount rate; and
● comparing inputs to relevant market and industry
information.
We audited the disclosures in note 13.3 of the
consolidated financial statements to ensure that they
are compliant with the requirements of the relevant
accounting standards.
From our procedures performed, we have no matters
to report.
44
ANNUAL FINANCIAL STATEMENTS
PwC 3
Description of the key audit matter How our audit addressed the key audit matter
Accounting for the convertible note
The Group issued a mandatory
convertible note in May 2021 resulting in a
cash inflow of $8.2m. As at 30 June
2021, the Group recognised a liability of
$7.4m and a derivative financial
instrument of $0.8m to reflect the terms of
the convertible note.
As described in note 12.7, the convertible
note includes a number
of features including an early conversion
option and conversion at a discount to the
weighted average share price on
conversion.
In accordance with NZ IAS 32 Financial
Instruments: Presentation, the instrument
was deemed to include an embedded
derivative.
NZ IAS 32 requires any derivative that is
not closely related to the host contract to
be bifurcated from the instrument and fair
valued. The residual amount of the
proceeds is then accounted for as a
liability at amortised cost.
Management engaged a valuations expert
to fair value the embedded derivative at
initial recognition and at period end.
The accounting for the convertible note is
considered a key audit matter as the
recognition and valuation of embedded
derivatives in host contracts is technically
complex and involves significant
management judgement.
We performed a detailed assessment of the
accounting for the convertible note, with the
involvement of our technical accounting specialists,
by:
● obtaining the convertible note deed and
assessing the key terms in the agreement,
including considering any terms that indicated
the existence of an embedded derivative.
● considering whether the embedded derivative
identified was closely related to the host contract
and whether the derivative portion of the
instrument required bifurcation.
We obtained management’s valuation of the derivative
instrument and engaged our auditor’s valuation expert
to assist us in considering the valuation methodology
applied and in assessing whether the valuations at
initial recognition and at period end are reasonable by
reperforming the calculations using an alternative
approach.
We assessed the competence, independence and
objective of management’s valuations expert.
We ensured that the residual portion of the instrument
was recognised as an other financial liability at
amortised cost separately from the derivative.
We reviewed the disclosures in the financial
statements to ensure compliance with NZ IFRS
requirements.
From our procedures performed, we have no matters
to report.
45
ANNUAL FINANCIAL STATEMENTS
PwC 4
Our audit approach
Overview
Overall group materiality: $1.5 million, which represents
approximately 2.5% of reported earnings before tax, finance costs,
depreciation and amortisation, share of loss of associates and
impairment of investment in associates and other non-operating
expenses (EBITDA) as reported in Note 5.
We chose EBITDA as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most
commonly measured by users, and is a generally accepted
benchmark.
• Full scope audits were performed for 4 of 15 entities in the
Group based on their financial significance;
• Specified audit procedures and analytical review procedures
were performed on the remaining entities.
As reported above, we have two key audit matters, being:
• Goodwill impairment test
• Accounting for the convertible note
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override of internal controls, including among
other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industries in which the Group operates.
The scope of our audit and the nature, timing and extent of audit procedures performed were
determined by our risk assessment, the financial significance of components and other qualitative
factors (including history of misstatement through fraud or error).
46
ANNUAL FINANCIAL STATEMENTS
PwC 5
We performed audit procedures over components considered financially significant in the context of
the Group (full scope audit) or in the context of individual primary statement account balances (audit of
specific account balances). We performed other procedures including analytical review procedures to
address the risk of material misstatement in the residual components.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the consolidated financial statements
and our auditor's report thereon. The Annual report is expected to be made available to us after the
date of this auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we will
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
47
ANNUAL FINANCIAL STATEMENTS
PwC 6
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Maxwell John
Dixon.
For and on behalf of:
Chartered Accountants
25 Au
gust 2021
Auckland
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- MFT — Mainfreight Limited: Mainfreight Half Year Financial Results 30 September 20212021-11-10
“Page 20 Group Outlook Strong half year position, followed by further improving results post ‐ September Expectation of increased volumes and growth through to year ‐ end and beyond Consumer demand Market share opportunities…”
- FRW — Freightways Group Limited: Full Year Results to 30 June 2021 and Final Dividend2021-08-22
“Results for announcement to the market Name of issuer FREIGHTWAYS LIMITED Reporting Period 12 months to 30 June 2021 Previous Reporting Period 12 months to 30 June 2020 Currency New Zealand dollars Amount (000s) Percentage change Revenue from continuing operations $800,…”
- FWL — Foley Wines Limited: FWL Full Year 2021 and Annual Report Published2021-08-26
“Results announcement Results for announcement to the market Name of issuer Foley Wines Limited Reporting Period 12 months to 30 June 2021 Previous Reporting Period 12 months to 30 June 2020 Currency NZD Amount (000s) Percentage change Revenue from continuing operations $…”