MOVE LOGISTICS GROUP RESULTS FOR YEAR ENDED 30 JUNE 2022
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 2022
Previous Reporting Period 12 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$345,782 5.1%
Total Revenue $345,782 5.1%
Net profit/(loss) from
continuing operations
($3,643) (110.5%)
Total net profit/(loss) ($4,208) N/A
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
$0.45 $0.17
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
24 August 2022
Audited financial statements accompany this announcement.
---
Company Announcement
24 August 2022
MOVE LOGISTICS GROUP RESULTS FOR YEAR ENDED 30 JUNE 2022
LAYING THE FOUNDATIONS FOR GROWTH
All financials in NZD, including continuing operations only
1
• Revenue of $349.1m with Underlying EBITDA of $54.3m, in line with guidance ($53-56m)
• Solid progress being made on two year programme to reset the company to deliver growth
• Freight improvements starting to land, Contract Logistics reset and poised for growth, strong
performance from International
• Traversing challenging operating environment in FY22 including increasing inflationary
pressure, supply chain disruption and impact of pandemic on customer trading levels
• Priority focus in FY23 on Freight reset programme, market growth in targeted customer
segments and expansion of MOVE’s multi-modal offer, particularly in coastal and trans-
Tasman shipping
• Well positioned with clear strategy, strengthened balance sheet, experienced leadership
team and ambitious growth targets to deliver shareholder value. Early stage growth
initiatives underway with returns expected to build from FY23 onwards.
• Announced today the acquisition of the assets of Fluidex Transport Limited, a leading bulk
liquids and bulk dry powder transport provider operating throughout New Zealand.
Transport and logistics group, MOVE Logistics Group Limited (NZX/ASX: MOV), has reported earnings
in line with guidance for the 12 months ended 30 June 2022 (FY22), as it continues with its two year
programme to reset the company to deliver growth.
Executive Director of MOVE, Chris Dunphy, said: “We started a journey under the MOVE brand in
July 2021. We are working our assets smarter, investing in what matters and driving better returns
for our business. We have redefined our strategy and have set ambitious growth targets that will
deliver value for our shareholders. We are putting the foundations in place that will allow us to
expand our market presence and optimise our earnings. While there is still work to be done, we are
confident we have the people, the strategy and the passion to achieve our goals.”
The reset programme is delivering improvements in the Freight business, while Contract Logistics is
now in a strong position and poised for growth. International volumes recovered to pre-covid levels,
with strong revenue and earnings increases reflecting record ocean freight pricing.
FY22 Strategic Progress
• Board refresh, diversification of shareholder register including addition of several Australian
institutions, dual listed on ASX from 1 July 2022
• New leadership team with extensive industry experience
• Business reset and restructure complete with benefits now being seen
• Strengthened balance sheet with significant reduction in debt
1
Continuing operations excludes Specialist due to the planned divestment of this division. FY21 has been restated to
exclude discontinued operations.
• Transition to asset light model underway with Owner Drivers now comprising 39% of Freight
drivers (FY21: 32%).
• Good progress being made on Freight reset, with timeline extended by 6 to 12 months due
to supply chain disruptions and cost pressures
• Growth initiatives underway including entry into coastal and trans-Tasman shipping and
expansion in targeted customer segments where MOVE has existing strength
• Focus continues on ESG and decarbonisation with initiatives underway
FY22 Financial Results
Audited results were in line with guidance provided in May 2022, with normalised EBITDA of
$54.3m. The focus on margin improvement continues to be a priority as the company looks to
generate long term, sustainable earnings growth.
The operating environment increased pressure on the business in FY22, with increasing costs and as
normal trading levels were impacted for many customers. Trading volumes in Freight and Fuel were
below expectations, reflecting the impact of Covid-19 on fuel deliveries in 1H22.
Continuing global supply chain disruptions have led to a delay in MOVE’s asset replacement
programme, with lead times for the delivery of new trucks significantly extended. This is resulting in
increased maintenance costs on existing assets. Operating costs, particularly fuel, parts and labour,
have increased with inflation, with some offset following the pricing review and reset undertaken by
MOVE in the first half of the year.
However, these conditions have also provided opportunities to grow MOVE’s market share as
competitors start to wane. MOVE is well resourced to take advantage of changes in the sector to
grow both organically and through bolt on acquisitions.
The company has reported on continuing operations which exclude Specialist due to the planned
divestment of this division. FY21 results have been restated to exclude discontinued operations.
Revenue of $349.1m (an increase of $16.8m on the prior year) benefitted from the ability to pass
through rising costs, particularly rising fuel costs.
Normalised EBITDA was in line with the prior year, with normalised EBIT of $12.2m, a 9% increase
year on year.
MOVE reported a normalised net profit after tax (before non-controlling interests) of $0.4m, up from
a loss of $(0.2)m in the prior year
2
. Reported net loss after tax including discontinued operations was
$(4.2)m (FY21: $0.9m)
3
and includes costs of $3.4m relating to restructuring and resetting the
business.
A capital raise in November 2021 helped strengthen the financial structure of the company with net
debt reduced from $64.3m to $20.9m and a gearing ratio of 22.3% as at 30 June 2022.
2
Normalised EBITDA, Normalised EBIT and Normalised NPAT exclude non-trading adjustments of $3.4m pre-tax related to
restructuring and resetting the business as part of the strategic plan (FY21: $1.5m)
3
Including discontinued operations; attributable to owners of the company
Results are expected to considerably improve in FY23 as the Freight reset continues, Contract
Logistics builds on the work done in the last year and International capitalises on new opportunities.
Some of the growth initiatives under development are now starting to land, with early benefits
expected to be seen in FY23. In particular, the company is embarking upon coastal and trans-Tasman
shipping, which further expands MOVE’s multi-modal offer. MOVE Oceans provides more choice for
customers and helps to reduce carbon emissions by moving multiple truckloads onto ships.
The company has also been identifying particular customer sectors where it can build on its existing
footprint to provide a high quality integrated solution across customer supply chains, including
Viticulture, Dairy, Beverages and Aquaculture. MOVE has today announced the acquisition of the
business and assets of Fluidex Transport Limited. This complements MOVE’s existing fuel and bulk
liquids logistics business and supports MOVE’s strategy to further grow and enhance integrated
supply chain solutions for targeted customer sectors including dangerous goods and food grade
commodities such as oils, wine and dairy.
A digital transformation has commenced which will provide benefit across the company. New
leadership is also bringing a fresh perspective and indepth industry expertise to MOVE.
Chair of MOVE, Lorraine Witten, said: “The last year has been one of re-shaping the business and
defining a clearer more focused service. We are now positioned for the next phase with a stronger
balance sheet, and a talented team to drive profitable growth. The priorities for FY23 are to continue
to improve our Freight division and transitioning to an asset light model, implement digital systems,
execute growth in priority customer segments and build our multi-modal offer, particularly in
shipping. While there is still work to be done we continue to be confident in the future potential for
MOVE.”
ENDS
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
For media assistance, please contact: Jackie Ellis t: + 64 27 246 2505 e: jackie@ellisandco.co.nz
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 LOGISTICS GROUP LIMITED
FY22 RESULTS AND STRATEGY
Chris Dunphy, Executive Director
Lee Banks, Chief Financial Officer
24 August 2022
INCOME
$349.1m
FY21: $332.3m
EBITDA
Normalised
2
$54.3m
FY21: $54.5m
EBIT
Normalised
2
$12.2m
FY21: $11.2m
NPAT/NLAT
3
$(4.2)m
FY21: $0.9m
NPAT
Normalised
2
$0.4m
FY21: $(0.2)m
LTIFR
15.81
FY21: 19.84
GEARING
22.3%
FY21: 62.9%
FREE CASHFLOW
$43.9m
FY21: $45.0m
FY22 PERFORMANCE SNAPSHOT
First 9 months of 2-year programme to strengthen and grow MOVE
FY22 Results Presentation
2
1.Continuing operations excludes Specialist due to the planned divestment of this division
2.NormalisedEBITDA, NormalisedEBIT and NormalisedNPAT exclude non-controlling interest and non-trading adjustments of $3.4m pre-tax related to
restructuring and resetting the business as part of the strategic plan(FY21: $1.5m)
3.Including discontinued operations, attributable to owners of the company
Earnings in line with guidance
Continuing Operations
1
UPDATE ON KEY STRATEGIC PRIORITIES
Resetting the business to deliver growth
COMPLETED:
✓Comprehensive business review
✓Restructured the business divisions to
better reflect asset utilisation and
customers
✓Strengthened the leadership team
✓Commenced digital journey
✓Refreshed the Board
✓Diversified the share register
✓Considerably strengthened the financial
structure through successful $40m capital
raise
FY22 Results Presentation3
IN PROGRESS:
•Fix Freight:
•Concentrate on margin
•Freight system upgrade
•Transition to asset light model
•Execute Move Oceans strategy,
commencing with trans-Tasman route
•Grow the Contract Logistics offering
•Focus on industry verticals
•Reposition property
•Improve capability and retention
•Sale process for Specialist business
FY22 OPERATING ENVIRONMENT
Challenging but surmountable conditions
OPERATING ENVIRONMENT
•Restricted operating environment due to COVID
lockdowns
•Increase in global and local supply chain
disruption
•Increasing inflationary pressure
•Driver shortages becoming more acute
•Interest rates continue to rise
FY22 Results Presentation
4
IMPACT ON MOVE
•Significant decrease in fuel deliveries due to
reduced client demand and impact of COVID
on normal trading levels
•Supply chain disruptions and cost pressures
delaying planned improvements in Freight
reset programme
•Delay in asset replacement programme
(trucks) resulting in increased maintenance
costs on existing assets
•Increased operating costs
•Strong international volumes and record
ocean freight pricing
FINANCIAL RESULTS
FY22 Results Presentation5
FY22 GROUP SUMMARY
FY22 Results Presentation6
1.Continuing operations excludes Specialist due to the planned divestment of this division
2.NormalisedEBITDA, NormalisedEBIT and NormalisedNPAT excludes NCI and non-trading adjustments of $3.4m pre-
tax related to restructuring and resetting the business as part of the strategic plan(FY21: $1.5m)
3.Including discontinued operations, attributable to owners of the company
$Millions
Continuing Operations
1
FY22FY21
FY21:22
change
Total Income
349.1332.316.8
Normalised EBITDA
2
54.354.5(0.2)
Normalised EBIT
2
12.211.21.0
Normalised
NPAT/(NLAT)
2
0.4(0.2)0.6
Reported NPAT/(NLAT)
including discontinued
operations
3
(4.2)0.9(5.1)
EPS (cents)
(3.44)(1.97)(1.47)
Free cashflow
43.944.9(1.0)
Net Debt
20.964.3(43.4)
PROGRESS MADE ON RESET
•Significant impact from COVID during the
year
•Ability to pass through rising costs (fuel)
benefitting income
•Normalised profit ahead of prior year –
impacted by delays in fleet replacement
driving up costs
•Reported NPAT impacted by $3.4m of costs
incurred to reset the business
•Free cashflow affected by increases in
working capital offset by lower capital
expenditure
•Net debt reduction due to successful
capital raise and cash on hand
NORMALISED EBITDA
FY22 Results Presentation7
FLAT YEAR ON YEAR BUT
IMPROVEMENTS STARTING TO SHOW
IN FREIGHT AND A STRONG
PERFORMANCE FROM INTERNATIONAL
•Revenue increase in Freight and International
contributed positively to EBITDA increase
•Contract Logistics fuel deliveries impacted by
COVID lockdowns and prior year positive
contract settlements
•Decrease in corporate costs reflects benefits
from organisationalreset
•Leaner structure and better internal
communication across the Group
NormalisedEBITDA excludes non-trading adjustments of $3.4m pre-tax related to restructuring and resetting
the business as part of the strategic plan. Further details included in appendix to this presentation.
CASH FLOW
FY22 Results Presentation
8
$000s
20222021
change
22 v 21
NormalisedEBITDA excl. non-cash
items
54,17754,590-413
Restructuring costs(1,768)(168)-1,600
Working capital movement(7,003)(4,204)-2,799
Net operating cashflows45,40650,218-4,812
Net capital expenditure(1,468)(5,239)+3,771
Free cash flow43,93844,979-1,041
Acquisitions0242-242
Net cash flow before financing and
tax
43,93845,221-1,283
Net interest payments(10,561)(10,931)+370
Tax payments(504)(2,504)+2,000
Advances from associates2000+200
Dividends (shareholders/non
controlling interests)
(45)(371)+326
Cash flow before movements in net
debt
33,02831,415+1,613
EBITDA cash conversion86.6%92.3%-5.6%
•Free cash flow impacted by restructuring
costs (one-off)
•Working capital increase due to delays in
customer payments for June ($2.2m
received first week in July) and reduction in
creditor days, as planned
•Net capital expenditure down due to Covid-
affected lead times on replacement fleet
•Cash conversion of 86.6% is a key focus
with a goal to improve to >90% in FY23
•Full year of convertible note interest in
FY22
CASH CONVERSION IS THE FOCUS
STRENGTHENED BALANCE
SHEET
•Reduction in net debt post
successful capital raise, improved
gearing ratio
•Refinanced bank debt with improved
terms and longer tenure
•Solid working capital ratio
FY22 Results Presentation
9
$000s
20222021change 22 v 21
Net Debt20,88964,344-43,455
Leverage Ratio.65x2.26x-1.61x
Gearing22.3%62.9%-40.6%
Working Capital Ratio1.531.42+0.11
0
10
20
30
40
50
60
70
80
FY20FY21FY22
$millions
Significant Reduction in Net Debt
FY20: FY22
CAPEX
CATCH UP REQUIRED IN FY23
•Replacement of aging fleet is planned
over the next two years
•65 new prime movers, 12 trailers and
16 forklifts due in FY22 will now arrive
in FY23
•Capital commitments as at June 2022
were $1.86m (primarily leased)
•Replacement TMS project is underway
with expected completion in late FY23
FY22 Results Presentation
10
Sustaining capital expenditure/depreciation and software
amortisation
FY22
58%
FY21
51%
Leased fleet additions
FY22
$4.72m
FY21
$4.34m
$000s
FleetPlant &
Equipment
L/H
Improv.
TechnologyTotal
Capex
MOVE Freight948 191 284 9 1,432
MOVE Contract Logistics280 2,526 -75 2,881
MOVE International 1,008 20 -8 1,036
Corporate-14 21 232 267
TOTAL FY222,236 2,751 306 323 5,616
TOTAL FY213,883 1,175 1,016 799 6,873
OPERATIONAL PERFORMANCE
FY22 Results Presentation11
SUSTAINABILITY
People, communities, environment
0
10
20
30
40
50
60
70
80
90
LTIFRTRIFR
Key safety indicators continue to
trend downwards
FY18: FY22
FY22 Results Presentation
12
•New monthly and annual safety awards
•Recertified as ToituCarbon Reduce for 3
years
•Commitment through the business to
decarbonisation –YOY reduction in Scope 1
and 2 emissions *
•Signed agreement to lease new hydrogen-
fuel trucks –expected Q2 FY22
•EV metro truck now operating in Auckland
•Progressed multi-modal strategy –reducing
number of trucks on the road
•Technology driving improvements in driver
behaviour, fuel consumption and route
optimisation
•Appointed a Group Sustainability Lead in July
2022
*Reduction partially due to rebalance of driver workforce. FY22 excludes
emissions from owner drivers, which will be included from FY23 onwards
MOVING DIGITAL
Current Assessment & Plan
FY22 Results Presentation13
FREIGHT
Re-set on track albeit with Covid bumps
•FY22 LTIFR of 26.5 requires continued focus (FY21: 25.9)
•Increase in revenue due to rising customer prices, in particular the
impact of fuel price movements
•Increase in EBITDA driven by sales uplift
•EBITDA margin at 10.2% remained flat year on year
•Cost impact due to delays in asset conversion/replacement
•Update on margin improvements
-In progress: conversion to a low asset model (39% of freight
drivers are owner drivers, FY21: 32%)
-Completed network review to ensure it is consistent and
reliable
-Pricing review continues
-New TMS implementation expected in late FY23
FY22 Results Presentation
14
Revenue: $180.9m, +7%
EBITDA: $18.5m, +5%
50
100
150
200
FY 2020FY 2021FY 2022
millions
Revenue
10
13
16
19
FY 2020FY 2021FY 2022
millions
NormalisedEBITDA
CONTRACT LOGISTICS
Stable and positioned well for growth
FY22 Results Presentation
15
•Improved LTIFR of 10.8 is pleasing (FY21: 13.1)
•Revenue up 2% despite significant decrease in fuel deliveries due
to COVID lockdown in 1H22 (down 22.5%)
•EBITDA margin down 2.6% from prior year however remains solid
at 22.7%
•YOY margin decrease primarily due to:
•COVID reduced volumes 1H22 ~ $0.3m
•Prior year benefit from contract settlements ~ $1.1m
•Negative YOY contribution from a contract now exited ~
$1.4m
•Improvements to margin have been a key focus with reviews
completed on:
-property rationalisation
-capacity utilisation
-contract pricing & renewal
Revenue: $154.2m, 2%
EBITDA: $35.0m, -9%
50
100
150
FY 2020FY 2021FY 2022
NZD millions
Revenue
10
20
30
40
FY 2020FY 2021FY 2022
NZD millions
Normalised EBITDA
INTERNATIONAL
Strong performance with expansion underway
•Division continued to be injury free
•Revenue increased by 31.9% compared to prior year
•Energy sectors clients have re-established programs delayed due
to COVID; has contributed to the recovery of revenue back to pre-
COVID levels
•Import/export activity has increased and rates charged have been
lifted
•Improved EBITDA due to increased revenue with cost base
remaining unchanged
•Expansion into shipping is underway with start up costs
supported by Waka Kotahi co-funded coastal shipping initiative
•Entered agreement to purchase the Atlas Wind to provide a trans-
Tasman shipping service, delivery expected Q4 2022
FY22 Results Presentation16
Revenue: $10.9m, +32%
EBITDA: $3.8m, +86%
2
4
5
7
8
10
11
FY 2020FY 2021FY 2022
NZD millions
Revenue
-
1
2
2
3
4
5
FY 2020FY 2021FY 2022
NZD millions
Normalised EBITDA
STRATEGY UPDATE
FY22 Results Presentation17
LAYING THE FOUNDATIONS
For the 12 months to 30 June 2022
Selldownby founding
shareholders
Appointment of Chris
Dunphy as Executive
Director
July 2021
Name change to MOVE
Logistics Group
Indepthbusiness review
August 2021
Organisationrestructure,
Board and senior
leadership changes
Lorraine Witten appointed
Chair
September 2021
Completion of $40m capital
raise
Commenced two year plan
to strengthen and grow the
business
November 2021
Continued to strengthen
leadership team and
diversify the share
register
December onwards
Assessment of coastal
shipping opportunity
Initiated digital journey
Announced sale process for
Specialist business
2H22
FY22 Results Presentation18
BETTER, STRONGER
BUSINESS
Work our assets smarter
Build our multi-modal offer
Optimise our earnings
SMART GROWTH AND
EXPANSION
Expand our customer offer
Further embed our domestic
presence
Move into Australia
TAKING CARE OF WHAT
MATTERS
Committed to a low carbon
future
MOVE AS ONE with our
people
STRATEGIC PATHWAYS TO ACHIEVE OUR AMBITIONS
WORK OUR ASSETS SMARTER
Investing in what matters and driving better returns
on our businesses and assets
•Reset Freight and grow through M&A
•Grow Contract Logistics organically and through M&A
•Investment in technology to drive operational
improvement and deliver business insights
•Transition to leased trucks and owner driver model
•Optimise the property footprint to best serve client
demand
•Focus on capex efficiency
•Optimised end to end customer solution
•Utilise all modes of transport –road, rail, sea, air
•MOVE Oceans opportunity
•Inter-island line haul via Nelson-New Plymouth
•Trans-Tasman shipping focussed on secondary ports
•Network optimisation
•Smart intermodal assets
BUILD OUR MULTI-MODAL OFFER
Creating a multi-modal offer that utilises the best freight modes
to deliver our customers’ goods where and when needed
•Focus on improving margins and managing costs
•Drive growing revenue and EBIT
•Deliver improving shareholder returns
•Balance growth with dividend payments
OPTIMISE OUR EARNINGS
Deliver strong earnings growth and value for shareholders
•Attract new customers to our high quality service
•Expand and further cross sell our services between
Freight and Contract Logistics
•Build a greater presence in targeted sectors
including Viticulture, Aquaculture, Dairy and
Beverages
Innovate, Decarbonise and Grow
DELIVER FOR OUR CUSTOMERS
Putting our customers at the heart of all we do and
delivering the best customer solution and service
•Leverage breadth of service offered across the group and expand
the solutions provided to each customer
•Create a beach-head in Australia, likely via Contract Logistics
•Expand trans-Tasman market presence via existing client
relationships
•M&A opportunities
•Leverage off consolidation of the Freight sector in NZ
•Generational ownership changes in Australia
•ASX Listing completed to raise both awareness and capital
UPSIZE OUR BUSINESS
Maximise organic and acquisition opportunities to expand
our market presence, extend our offer and grow our customer base
•Safety first, middle and last
•Retain and reward exceptional people
•Positive engagement with our local communities
•Committed to a low carbon future
•All team members ‘MOVE as One’ as we build a new
business and attitude
TAKING CARE OF WHAT MATTERS
Having a positive impact on our people, communities
and the environment
OUTLOOK
Improving margins and growing the business
•Great in-roads to margin improvement in Freight
•Continue improving Contract Logistics asset utilisation and gaining new clients
•Inflationary pressures expected to continue and demand regular interaction with
clients as to rate levels and sustainability
•Bolt-on acquisitions expected. FluidexTransport acquisition representative of this
strategy
•Shipping expansion is well underway and will be a key feature of FY23 result
•Recycling of capital between assets sales (Specialist) and acquisitions is preferred
to borrowing or equity issuance
•We intend to provide FY23 guidance at the Annual Shareholder Meeting in late
October.
FY22 Results Presentation26
FLUIDEX ACQUISITION
Complements existing fuel and bulk liquids business
•Fluidexis a leading bulk liquids and bulk
dry powder transport provider, operating
throughout New Zealand
•Recurring revenue of $11m with growth
potential
•Significant cross-selling opportunities
across MOVE’s businesses
•Acquisition of the business and the
assets–initial consideration of $7m,
$8.2m in 24 months –equating to market
value of assets being acquired
•Settlement in October 2022
EXTENDS MOVE’S CUSTOMER OFFER
Supports MOVE’s strategy to further grow and enhance integrated supply chain
solutions for targeted customer sectors
FY22 Results Presentation28
GROWTH STRATEGYCURRENT STATE
•FUEL
•DANGEROUS GOODS
•ISO TANK LEASE & STORAGE
•FOOD GRADE LIQUIDS –WINE, DAIRY, OILS
•DRY POWDERS –CEMENT, FLOUR
•ROAD AND ISO TANKER DEEP CLEANING
INTEGRATED SUPPLY CHAIN SOLUTIONS
DISCUSSION
FY22 Results Presentation29
FY22 Results Presentation30
APPENDICES
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
Non-GAAP Reconciliation
$MillionsFY22FY21
Net profit/(loss) before income tax from continuing
operations (GAAP measure)
(2.42)(1.58)
Add back:
Share of loss of associates.10.15
Net finance costs11.0511.1
Loss in investment in associates.06.10
Restructuringcosts1.63-
Share acquisition costs.13.31
Goodwill and asset impairment1.621.13
Depreciation & Amortisation42.1643.27
EBITDA excluding non-trading items (non-GAAP measure)54.3354.48
Net profit/(loss) after income tax (GAAP measure)
attributable to owners
(4.21).87
Less: Discontinued operations after tax(.57)2.60
Add back:
Non-controlling interests1.10.43
Other non-trading expenses, net of tax:
Goodwill and asset impairment1.62.82
Restructuring costs1.18-
Share acquisition costs.13.31
Net profit/(loss) after tax excluding non-trading items
(non-GAAP measure)
.39(.17)
FY22 Results Presentation31
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.
•EBITDA: Earnings before interest, tax, depreciation,
amortisation excluding income and impairment from
associates
•Normalised EBITDA: EBITDA before non-trading costs
•Normalised EBITDA Margin: Normalised EBITDA as a
percentage of total income
•Normalised EBIT: Normalised EBITDA less depreciation and
amortisation
•Free cash flow: EBITDA excluding non-cash items plus
movements in working capital, less net capital expenditure
•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
•Working Capital Ratio: Current Assets excluding held for
sale / Current Liabilities excluding borrowings and held for
sale
•LTIFR: Lost time injury frequency rate
•TRIFR: Total recordable injury frequency rate
DISCONTINUED
OPERATIONS
PLANNED DIVESTMENT OF SPECIALIST
ACTIVITIES
•Planned divestments align to our strategic
reset
•Activities being divested are better aligned
to private ownership
•Limited cross-over to Freight and Contract
Logistics divisions
•In discussion with multiple interested
parties
FY22 Results Presentation
32
Discontinued Operations -$000s20222021
change
22 v 21
Revenue14,33924,301(9,962)
Net (loss)/profit before tax(785)3,611(4,396)
Net (loss)/profit after tax(565)2,600(3,165)
Net Cashflows2185,184(4,966)
Assets classified as held for sale25,263-
Liabilities directly associated with assets
classified as held for sale
6,149-
Disclaimer
FY22 Results Presentation33
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.
---
ANNUAL FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
ANNUAL FINANCIAL STATEMENTS
ANNUAL FINANCIAL STATEMENTS JUNE 2022
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 - 43
DIRECTORS’ STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
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 2022 contained on pages 1 - 43.
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 2022. They do
not have the power to amend these financial statements after issue.
For and on behalf of the Board
Lorraine Witten - Chair
23 August 2022
Grant Devonport - Director
23 August 2022
1
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT OR LOSS &
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
NOTES
30 JUNE 2022
$000
30 JUNE 2021
$000*
Revenue 7345,782328,947
Gains on disposal of assets 527885
Lease income1,2401,490
Other income 1,553948
Total Income 7349,102332,270
Transport costs(146,052)(128,065)
Employee costs(116,577)(120,348)
Rental / lease expenses(4,266)(3,397)
Other operating expenses(27,875)(25,979)
Depreciation of right of use assets8(30,303)(30,500)
Other depreciation / amortisation expenses 8(11,852)(12,765)
Other non-operating expenses5(3,387)(1,451)
Impairment of investment in associates16.2(61)(95)
Total Operating Expenses 8(340,373)(322,600)
Finance costs relating to lease liabilities(7,948)(7,921)
Other finance costs - interest on borrowing(3,111)(3,180)
Interest income on short term deposit101
Operating loss before income tax(2,320)(1,430)
Share of (loss) of associates 16.2(103)(149)
Loss Before Income Tax (2,423)(1,579)
Income tax (expense)/credit 9(116)283
LOSS FOR THE YEAR FROM CONTINUING OPERATIONS (2,539)(1,296)
Net (loss)/ profit from discontinued operations after tax21(565)2,600
(LOSS) / PROFIT FOR THE YEAR(3,104)1,304
(Loss) / Profit attributable to:
Owners of the company(4,208)869
Non-controlling interests1,104435
(3,104)1,304
Other comprehensive income:
Comprehensive Income for the Period, Net of Tax --
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR, NET OF TAX (3,104)1,304
Earnings per share attributable to the ordinary equity holders of
the Company
CENTSCENTS
Basic and diluted earnings per share from continuing operations
11(3.44)(1.97)
Basic earnings per share for profit attributable to the ordinary equity
holders of the company
11(3.97)0.99
The above consolidated Statement of Profit or Loss & Other Comprehensive Income should be read in conjunction with the accompanying
notes.
*Certain amounts and relevant notes have been restated to reflect adjustments relating to discontinued operations note 21.
2
ANNUAL FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2022
NOTES
30 JUNE 2022
$000
30 JUNE 2021
$000
ASSETS
Current Assets
Cash and cash equivalents 12.114,94013,214
Inventories -55
Trade and other receivables 12.260,29449,754
Tax receivable-450
Advances to associates12.3-218
Assets held for sale2125,263-
Total Current Assets 100,49763,691
Non-Current Assets
Property, plant and equipment 13.157,76187,785
Right of use assets13.2150,381164,826
Intangible assets 13.318,05821,173
Deferred Income tax asset13.4149-
Investments in associates 16.2271417
Total Non-Current Assets 226,620274,201
TOTAL ASSETS 327,117337,892
EQUITY
Share capital1475,18837,054
Other reserves8848
Accumulated losses(5,081)(873)
Equity attributable to owners of the parent 70,19536,229
Non-controlling interest in equity2,7981,738
TOTAL EQUITY 72,99337,967
LIABILITIES
Current Liabilities
Trade and other payables 12.438,09231,840
Tax payable211-
Deferred revenue7521504
Borrowings 12.63,71367,352
Lease liability13.226,39327,310
Employee entitlements 12.510,47612,524
Liabilities directly associated with assets classified as held for sale216,149-
Total Current Liabilities 85,555139,530
Non-Current Liabilities
Borrowings 12.624,3242,811
Lease liability13.2133,338144,218
Convertible note12.77,7927,395
Derivative financial instrument12.7849834
Deferred income tax liability 13.4-2,682
Provisions for other liabilities and charges 13.52,2662,455
Total Non-Current Liabilities168,569160,395
TOTAL LIABILITIES 254,124299,925
TOTAL EQUITY & LIABILITIES 327,117337,892
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 2022
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 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
Balance as at 1 July 2021
37,054(873)4836,2291,73837,967
Comprehensive income
(Loss)/Profit for the year
-(4,208)-(4,208)1,104(3,104)
Other comprehensive income
------
Total comprehensive income
-(4,208)-(4,208)1,104(3,104)
Cumulative translation adjustment
--6767-67
Transactions with owners:
Employee share scheme20
34-(27)7-7
Issue of Ordinary Shares
38,100--38,100-38,100
Dividends
----(44)(44)
Balance as at 30 June 2022
75,188(5,081)8870,1952,79872,993
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 2022
NOTES
30 JUNE 2022
$000
30 JUNE 2021
$000*
Cash flows from operating activities
Receipts from customers 336,585327,110
Interest received 101
Dividends received 250
Payments to suppliers and employees (292,537)(277,757)
Government subsidy received942267
Notional finance charge on NZ IFRS 16 leases15.2(7,948)(7,920)
Interest paid (2,613)(3,011)
Income tax paid (504)(2,504)
Net cash generated from operating activities 15.133,93736,236
Cash flows used in investing activities
Purchase of business, net of cash acquired-242
Purchase of property, plant and equipment(4,999)(5,728)
Proceeds from sale of property, plant and equipment4,1481,395
Purchase of intangible assets(214)(359)
Advances to associates 200-
Net cash used in investing activities (865)(4,450)
Cash flows from financing activities
Repayment of borrowings15.2(123,869)(16,242)
Proceeds from borrowings15.281,643-
Proceeds from share issue1438,100-
Convertible note15.2-8,200
Repayment of lease liability (NZ IFRS 16)(27,394)(27,225)
Dividends paid to shareholders / non-controlling interests(44)(371)
Net cash flow used in financing activities(31,564)(35,638)
Net increase in cash and cash equivalents - continuing
operations
1,508(3,852)
Net increase in cash and cash equivalents - discontinued
operations
212185,184
Cash and cash equivalents at beginning of year 13,21411,882
Cash and cash equivalents 30 June14,94013,214
The above consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
*Certain amounts and relevant notes have been restated to reflect adjustments relating to discontinued operations note 21.
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 (“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, warehousing 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 dual listed with its primary listing
of ordinary shares quoted in New Zealand on the NZX Main Board, and a secondary listing in Australia as a foreign Exempt
Entity on the Australian securities exchange (ASX) (refer note 22).
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 2022, 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 Markets Conduct 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.
c. Assets held for sale
Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount or fair
value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their carrying amount is
expected to be recovered through a sale transaction rather than through continuing use. This condition is regarded as
met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present
condition and the sale of the asset (or disposal group) is expected to be completed within one year from the date of
classification. Impairment losses on initial classification as held for sale and subsequent gain or loss on remeasurement
is recognised in profit or loss. Once classified as held for sale, intangible assets and property, plant and equipment are no
longer amortised or depreciated.
d. Discontinued Operations
Classification as a discontinued operation occurs on disposal, or when the operation meets the criteria to be classified as
a non-current asset or disposal group held for sale. When an operation is classified as a discontinued operation, the profit
or loss is restated to present the results of discontinued operations as a single amount as if the operations had been
discontinued from the start of the comparative year.
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 7
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 & INTERPRETATIONS
The accounting policies applied in the preparation of the consolidated financial statements are consistent with prior year.
There are no new accounting standards or interpretations during the year that have impacted on the preparation of 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 2022 that will have a material impact on the consolidated financial statements.
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.
2022
$000
2021
$000
Trade and other receivables
Trade receivables56,83147,418
Credit loss provision(1,402)(1,152)
Total trade receivables55,42946,266
Accrued revenue3,5301,476
Sundry receivables317497
Advances to associates-218
Cash and short term bank deposits
Bank with AA- credit rating14,94013,214
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8
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.
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:
2022
$000
2021
$000
At 1 July1,1522,952
Provision for impairment recognised during the year308193
Provision for credit notes to revenue265(1,770)
Transfer to Asset held for Sale(20)-
Receivables written off during the year as uncollectible(303)(223)
At 30 June 1,4021,152
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 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
30 June 2022
Gross carrying amount48,6355,4261,7261,04456,831
Baseline1051281707341,137
Specific--120145265
Total expected credit loss rate0.2%2.4%16.8%84.2%
Credit loss provision1051282908791,402
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9
3.1. CREDIT RISK MANAGEMENT (CONTINUED)
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.
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 $1,402,000 (2021: $1,152,,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 20241.625% pa
The Group does not hedge account so all market adjustments are recognised in the Statement of Profit or Loss & Other
Comprehensive Income.
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 $80,000 (2021: $575,000).
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:
2022
$000
2021
$000
Expiring within one year (bank overdraft)
5,0002,000
Expiring beyond one year (flexible credit facility)
15,000-
Total20,0002,000
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
2021
Borrowings69,7179662,059-72,74270,163
Convertible note4104101,162-1,9827,395
Lease liabilities34,50931,48064,40380,748211,140171,528
Trade and other
payables
31,840---31,84031,840
Employee entitlements12,524---12,52412,524
Total149,00032,85667,62480,748330,228293,450
2022
Borrowings6,4176,16319,061-31,64128,037
Convertible note410410752-1,5727,792
Lease liabilities32,68528,10457,12580,058197,972159,731
Trade and other
payables
38,092---38,09238,092
Employee entitlements10,476---10,47610,476
Total 88,08034,67776,93880,058279,753244,128
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 is as follows:
2022
$000
2021
$000
Bank borrowings28,03770,163
Convertible note7,7927,395
Less: cash and cash equivalents(14,940)(13,214)
Net debt (excluding lease liabilities)20,88964,344
Equity72,99337,967
Gearing ratio22.3%62.9%
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. Other
critical accounting estimates will be disclosed in the relevant notes.
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. 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).
c. Held for sale
In May 2022 the Group announced its intention to undertake a formal sales process to dispose of a subsidiary company.
Judgements have been made to determine that the conditions of a held for sale asset and discontinued operation have
been met. Disposal groups held for sale are measured at the lower of carrying amount or fair value less costs to sell,
these calculations require the use of accounting estimates (refer note 21).
5. RECONCILIATION TO GAAP MEASURE
The Group results are prepared in accordance with New Zealand Generally Accepted Accounting Practice (“GAAP”) and
comply with both International Financial Reporting Standards (“IFRS”) and the New Zealand equivalents to International
Financial Reporting Standards (“NZ 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:
• Adjusted EBITDA (a non-GAAP measure) represents profit or loss before income taxes from continuing operations
(a GAAP measure), excluding interest income, interest expense, depreciation and amortisation, share of loss of
associates, restructuring costs, impairment of investment in associates, asset impairment and acquisition related
costs (non operating expenses) as reported in the financial statements.
• Adjusted EBIT (a non-GAAP measure) represents profit or loss before income taxes from continuing operations
(a GAAP measure), excluding interest income, interest expense, share of loss of associates, restructuring costs,
impairment of investment in associates, asset impairment and acquisition related costs (non operating expenses)
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 2022
$000
12 months to
June 2021
$000
Loss Before Income Tax from continuing operations (GAAP
Measure)
(2,423)(1,579)
Add back:
Share of loss of associates 103149
Finance costs11,04911,100
Impairment of investment in associates6195
Other non operating expenses
- Goodwill impairment555-
- Asset impairment1,0641,133
- Restructuring Costs1,630-
- Acquisition related costs138318
Depreciation & amortisation 42,15543,265
Adjusted EBITDA (non-GAAP measure) 54,33254,481
Reconciliation to GAAP measure 12 months to
June 2022
$000
12 months to
June 2021
$000
Loss Before Income Tax from continuing operations (GAAP
Measure)
(2,423)(1,579)
Add back:
Share of loss of associates 103149
Finance costs (net)11,04911,100
Impairment of investment in associates6195
Other non operating expenses
- Goodwill impairment555-
- Asset impairment1,0641,133
- Restructuring Costs1,630-
- Acquisition related costs138318
Adjusted EBIT (non-GAAP measure) 12,17711,216
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.
During the reportable period there was a change in the Chief Operating Decision Maker (CODM) assessed now as the
Executive Director. Following this, there has been a change to the operating structure of the Group and as such the
reportable operating segments have been revised to align with the new structure.
The Group has made the decision that the thirteen operating segments that form part of the reporting to the Executive
Director can be aggregated into five 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 allocation of
capital, the type of customers serviced, and the nature of the distribution channels.
In addition to GAAP measures, the Executive Director also uses non-GAAP measures (EBITDA and EBIT) to assess the
commercial performance of the segments. 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.
As a result of the Groups’ strategic review the Group is undertaking a formal sales process of the company that
comprises the Specialist segment and as such this company has been classified as held for sale and treated as a
discontinued operation as at 30 June 2022. Further information on this held for sale item is outlined in note 21.
FREIGHT
This segment provides nationwide general freight transport services with regional strength. It is able to transport a wide
range of freight types.
CONTRACT LOGISTICS
This segment specialises in contracted solutions providing services for customers including warehouse and supply chain
capability and delivery of bulk liquids.
CORPORATE
This segment includes our corporate services function.
Comparative information has been re-presented from that presented in the 30 June 2021 Financial Statements. This is to
provide comparative information aligned with the newly determined reporting segments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14
6. SEGMENT INFORMATION (CONTINUED)
The segment information for the year ended 30 June is as follows:
InternationalSpecialistFreightingContract
Logistics
CorporateTotalDiscontinued
Operation
Total
Continuing
Operations
$000$000$000$000$000$000$000$000
Year ended 30 June 2021
Total segment revenue 8,24224,301181,219156,754-370,516(24,301)346,215
Inter-segment revenue (9)(182)(12,226)(4,851)-(17,268)-(17,268)
Revenue from external
customers
8,23324,119168,993151,903-353,248(24,301)328,947
EBITDA2,0756,83317,61838,426(3,638)61,314(6,833)54,481
Depreciation - tangible
assets
1462,0705,8904,17330212,581(2,070)10,511
Depreciation - ROU assets23297110,42819,67916131,471(971)30,500
Depreciation - intangible
assets
156121,8404012,310(56)2,254
EBIT1,6963,7361,28812,734(4,502)14,952(3,736)11,216
Assets11,47127,419136,775149,36912,858337,892-337,892
Liabilities7,1377,141100,391109,55275,704299,925-299,925
Capital expenditure
including intangibles
1792871,7144,2317497,160-7,160
Year ended 30 June 2022
Total segment revenue 10,87814,339195,354158,759-379,330(14,339)364,991
Inter-segment revenue (16)(111)(14,489)(4,593)-(19,209)-(19,209)
Revenue from external
customers
10,86214,228180,865154,166-360,121(14,339)345,782
EBITDA3,8521,86118,50234,981(3,003)56,193(1,861)54,332
Depreciation - tangible
assets
1381,6395,0723,90829111,048(1,639)9,409
Depreciation - ROU assets21781110,57419,35116131,114(811)30,303
Depreciation - intangible
assets
16261,8505862,505(62)2,443
EBIT3,496(651)2,8509,872(4,041)11,52665112,177
Assets20,46025,263130,567141,3319,496327,117(25,263)301,854
Liabilities13,7046,14995,880102,79535,596254,124(6,149)247,975
Capital expenditure
including intangibles
1,036911,4322,8812675,707(91)5,616
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 $47,100,000 (2021: $46,500,000) are derived from a single external customer which exceeds 10%
or more of our entity’s revenue. These revenues are attributed to the Contract Logistics 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:
2022
$000
2021
$000
Freight282,054271,382
Warehousing51,11647,911
Trading12,6129,654
Total Revenue345,782328,947
Timing of revenue recognition
June 2022June 2021
$000$000
Over time
345,782328,947
At a point in time
--
Total Revenue
345,782328,947
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 recognised 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 $504,000 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 2022 will be recognised as revenue during the next reporting period ($521,000).
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 $192,000 (2021: $267,000) and a grant from Waka Kotahi to support a co-funded coastal
shipping initiative $750,000 (2021: $0) are both included in the ‘other income’ line item. There are no unfulfilled conditions
or other contingencies attached to these grants. 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
2022
$000
2021
$000
Transport costs
1
146,052128,065
Employee costs (note 8.1)116,577120,348
Property lease expenses614563
Operating lease expenses3,6522,834
Trading and warehousing expenses6,2645,018
Communications5,4585,762
Occupancy costs7,1806,444
Travel and accommodation2,7233,307
Bad debts418159
Foreign exchange (gain)/loss(231)24
Remuneration paid to principal auditors (PwC)
Assurance services
Audit and review of financial statements, including associated disbursements310325
Non-assurance services
Other advisory services related to:
-Taxation services-38
-ASX Compliance Listing41-
Donations2015
Directors fees 471430
Depreciation and amortisation42,15543,265
Impairment of investment in associates6195
Non operating expenses (refer note 5)3,3871,413
2
Share based payments657
Other expenses5,2154,438
Total operating expenses340,373322,600
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 for 2021 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 for 2021 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% - 6%.
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.
2022
$000
2021
$000
Wages, salaries & leave costs110,502113,410
Superannuation fund contributions2,8002,830
Other employee related costs3,2754,108
Total116,577120,348
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 18
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.
2022
$000
2021
$000
Current tax on loss for the year(968)(1,463)
Adjustments in respect to prior years11(26)
Deferred tax1,061762
104(727)
Income tax expense/(credit) is attributable to:
(Loss)/Profit for the year from continuing operations(116)283
(Loss)/Profit for the year from discontinued operations220(1,010)
104 (727)
The prima facie income tax expense on pre-tax accounting profit from continuing operations reconciles to the income
tax expense in the financial statements as follows:
2022
$000
2021
$000
Loss from continuing operations before tax(2,423)(1,579)
(Loss)/Profit from discontinued operations before tax(785)3,611
(3,208)2,032
Add back:
Impairment of investment in associates6195
Share of loss of associates103149
(3,044)2,276
Prima facie tax receivable/(payable) at 28%852(637)
Tax effects of:
Expenses not deductible(540)(64)
Effect of tax rates in foreign juristrictions37-
Tax losses utilised in prior year(256)-
Prior year adjustment11(26)
Income tax expense/(credit)104(727)
Imputation credits
2022
$000
2021
$000
Imputation credits available for use in subsequent periods3,1942,766
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 19
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. Intercompany dividends are eliminated on consolidation.
No dividends have been declared by the company or recognised in the current year (2021: nil).
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. At balance date, the effects of the potential ordinary shares were antidilutive. The potential ordinary shares
include the convertible note and share options.
12 months to 30
June 2022
12 months to 30
June 2021
$000$000
Loss attributable to the owners for the year from
continuing operations
(3,643)(1,731)
(Loss)/Profit attributable to the owners for the year
from discontinued operations
(565)2,600
(4,208) 869
Weighted average number of shares106,048,75587,684,882
CentsCents
Basic & diluted earnings per share from continuing
operations
(3.44)(1.97)
Basic earnings per share from discontinued
operations
(0.53)2.96
(3.97) 0.99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 20
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 the consolidated Statement of Profit or Loss and other
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
2022
$000
2021
$000
Cash and cash equivalents
12.1
14,94013,214
Trade and other receivables
1
12.2
59,27648,239
Advances to associates
12.3
-218
Total74,21661,671
1
excluding non financial assets
FINANCIAL LIABILITIES AT AMORTISED COST
Financial LiabilitiesNotes
2022
$000
2021
$000
Trade Payables
1
12.4
36,59230,425
Employee entitlements
12.5
10,47612,524
Borrowings
12.6
28,03770,163
Convertible note
12.7
8,6418,229
Total83,746121,341
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 $60,678,000 (2021: $49,391,000).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21
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:
2022
$000
2021
$000
Cash14,94013,214
Bank overdrafts (undrawn, refer note 3.3)--
Total14,94013,214
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.
2022
$000
2021
$000
Trade receivables56,82947,290
Trade receivables related parties 2128
Less expected credit loss (refer note 3.1(a))(1,402)(1,152)
Net trade receivables55,42946,266
Accrued revenue3,5301,476
Sundry receivables317497
Financial assets at amortised cost59,27648,239
Prepayments1,0181,515
Total trade and other receivables60,29449,754
Trade receivables are generally due for settlement within 30 to 90 days.
12.3. ADVANCES TO ASSOCIATES
2022
$000
2021
$000
UNITE Logistics Limited
1
-218
Total-218
1
During the year the group sold its investment in UNITE Logistics refer note 16.2.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22
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.
2022
$000
2021
$000
Trade payables17,58319,945
Trade payables related parties74164
GST payable1,5001,415
Lease incentive12461
Accrued expenses18,9239,855
Total38,09231,840
Trade payables are unsecured and are usually paid within 30 to 60 days of recognition.
12.5 EMPLOYEE ENTITLEMENTS
2022
$000
2021
$000
Leave provision7,7318,587
Salary and wage accruals2,7453,937
Total10,47612,524
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 ANZ Bank Limited (ANZ) facilities include a $15m flexible credit facility (undrawn at 30 June 2022), an overdraft facility
of $5m, a term loan of $28.1m and bank guarantee’s totalling $9.7m (refer note 17).
2022
$000
2021
$000
Non-Current
Secured loan ANZ 24,324-
Secured loan Mainland Capital / De Lage Landen-5
Secured loan Toyota Finance-2,806
24,3242,811
Current
Secured loan ASB -66,488
Secured loan ANZ3,708-
Secured loan Mainland Capital / De Lage Landen559
Secured loan Toyota Finance-805
3,71367,352
Total secured borrowings28,03770,163
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 23
12.6. BORROWINGS (CONTINUED)
On 26 July 2021, as a result of the 30 June 2021 expiry of its current facility with the ASB the Group renegotiated new
facilities with ANZ Bank Limited (ANZ) and UDC Finance Limited (UDC). These facilities included:
• 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
On 26 September 2021 the Group agreed an amendment with ANZ and UDC to reset its financial covenants due to the
impact of the August 2021 COVID-19 lockdown. This amendment showed the continued support of the Group’s banking
partners, ANZ and UDC.
In November 2021 following the capital raise (refer note 14) the Group reduced its debt facilities by $20m, comprising full
repayment of the Toyota Finance loan totaling $3.4m and repayment of $16.6m against the UDC Loan. In December 2021
the Group voluntarily repaid an additional $10m of debt against its UDC facility.
The covenants for these arrangements including those reset are as follows:
• Leverage Ratio of <3.00x
• Interest Cover Ratio of >1.00x for periods to 31 March 2022; increasing to >1.50x for 30 June 2022 and >2.50x thereafter
• Net capital expenditure not exceeding 110% of budgeted capital expenditure
• Operating lease commitments in relation to fleet and equipment are capped at $50m
• Guarantor coverage Assets / EBITDA of >85%
The Group fully complied with the above reset facility covenants.
On 8 March 2022 the Group renegotiated and consolidated its funding facilities to one funder, ANZ, repaying the UDC Loan
in full. This amendment indicates the continued support of the Group’s banking partner ANZ.
The ANZ covenants post debt reorganisation in March 2022 are as follows:
• Leverage Ratio of <2.5x
• Fixed Charge Cover Ratio of >1.25x
• Net capital expenditure not exceeding 110% of budgeted capital expenditure
• Guarantor coverage Assets of >85%
• Guarantor coverage EBITDA of >85% from Sept 2022 onwards
The Group has fully complied with the ANZ facility covenants to 30 June 2022.
Based on forward looking forecasts and the financial covenants agreed with the ANZ 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24
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 assumptions, 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 Profit or Loss and Other 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.
As at 30 June 2022 the group has $8.2m (2021: $8.2m) 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 to optimal conversion date.
The movement in the carrying value of the convertible notes liability is as follows:
2022
$000
2021
$000
As at 1 July7,395-
Proceeds of issue of convertible note-8,200
Capitalised interest costs using the effective interest method-(832)
Amortisation of embedded derivative liability at date of issue39727
As at 30 June7,7927,395
The movement in the carrying value of the convertible note derivative liability is as follows:
2022
$000
2021
$000
As at 1 July834-
Fair value of embedded derivative liability at date of issue-832
Fair value movement152
As at 30 June849834
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 25
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 2021
Convertible notes - derivative--834834
At 30 June 2022
Convertible notes - derivative--849849
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. (2021: 30 June
2023)
This discount rate applied
at 30 June 2022 was 7.35%.
(2021:4.5%)
The higher the volume
weighted average
market price the more
valuable the options
become. The convertible
notes convert based
on a fixed discount
on the share price at
conversion. An increase
in the market share
price of plus or minus
10% would not have a
notable impact on the
contract due to the
options converting at a
fixed discount on market
price.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 26
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 - 14 -SL
Land and buildings0% - 30%DV
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27
13.1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
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 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 1 July 2021
Cost580155,9445,49125,788320188,123
Accumulated depreciation(277)(82,619)(3,958)(13,484)-(100,338)
Net book amount30373,3251,53312,30432087,785
Year ended 30 June 2022
Additions-1,2152421,5882,4745,519
Disposals(18)(4,034)(40)(223)-(4,315)
Transfers-303(24)213(492)-
Depreciation charge(6)(8,377)(488)(2,177)-(11,048)
Impairment----(932)(932)
Transfers to assets classified as
held for sale
-(16,308)(13)(2,868)(59)(19,248)
Closing net book amount27946,1241,2108,8371,31157,761
At 30 June 2022
Cost556134,6795,56126,9771,370169,143
Accumulated depreciation(277)(72,247)(4,338)(15,272)-(92,134)
Transfers to assets classified as
held for sale
-(16,308)(13)(2,868)(59)(19,248)
Closing net book amount27946,1241,2108,8371,31157,761
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 28
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
4.63% (2021: 4.49%).
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:
20222021
Right of use assets$000$000
Opening net book value 1 July164,826170,029
Recognised on transition--
Additions6,46825,723
Disposals(4,523)(2,015)
Modifications to leases17,4572,560
Transfers to assets classified as held for sale(2,733)-
Depreciation for the period
- Property(20,842)(20,510)
- Motor vehicles(9,643)(10,239)
- Other(629)(722)
Closing net book value 30 June150,381164,826
Cost238,007222,665
Accumulated depreciation(84,893)(57,839)
Transfers to assets classified as held for sale(2,733)-
Net book value 30 June150,381164,826
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 29
13.2. ROU ASSETS AND LEASE LIABILITIES (CONTINUED)
20222021
Right of use assets$000$000
At 30 June
Property121,820129,641
Motor vehicles26,46032,899
Other2,1012,286
Total right of use assets150,381164,826
Lease liabilities$000
Opening lease liabilities at 1 July 21171,528
Additions6,834
Interest for the period8,081
Lease payments made(36,311)
Disposals(4,412)
Modifications16,772
Transfers to liabilities classified as held for sale(2,761)
Lease liabilities at 30 June 2022159,731
Lease liabilities maturity analysisMinimum lease
payment
InterestPresent value
$000$000$000
Within one year32,685(6,927)25,758
One to five years85,229(19,150)66,079
Beyond five years80,058(12,164)67,894
Total197,972(38,241)159,731
Current lease liabilities
32,685(6,927)
25,758
Non-current lease liabilities165,287(31,314)133,973
Total197,972(38,241)159,731
20222021
Lease liabilities$000$000
At 30 June
Current lease liabilities26,39327,310
Non-current lease liabilities133,338144,218
Total159,731171,528
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30
13.2. ROU ASSETS AND LEASE LIABILITIES (CONTINUED)
Lease related expenses included in the Consolidated Statement of Profit & Loss & Other Comprehensive Income:
20222021
$000$000
For the year ended 30 June
Depreciation30,30330,500
Short term lease4,2663,397
Interest on leases7,9487,921
Total42,51741,818
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 the appropriate contract term. Amortisation expense is recognised in the profit or
loss.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31
13.3. INTANGIBLE ASSETS (CONTINUED)
Goodwill
Computer
software
Work in
progress
Customer
lists
Total
$000$000$000$000$000
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 charge-(665)-(1,645)(2,310)
Impairment--(1,283)-(1,283)
Closing net book amount15,2172,0541383,76421,173
At 1 July 2021
Cost15,2174,90213810,50530,762
Accum. amortisation and impairment-(2,848)-(6,741)(9,589)
Net book amount15,2172,0541383,76421,173
Year ended 30 June 2022
Additions-18034-214
Disposals-(13)--(13)
Transfer to held for sale---(255)(255)
Transfers-138(138)--
Amortisation charge-(854)-(1,652)(2,506)
Impairment (555)---(555)
Closing net book amount14,6621,505341,85718,058
At 30 June 2022
Cost15,2175,1983410,50530,954
Transfer to held for sale
---(255)(255)
Accum. amortisation and impairment
(555)(3,693)-(8,393)(12,641)
Closing net book amount14,6621,505341,85718,058
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32
13.3. INTANGIBLE ASSETS (CONTINUED)
The Group has classified its goodwill into the following cash-generating units (CGUs):
2022
$000
2021
$000
MOVe Freight Limited
1,0271,027
Alpha Customs Limited776776
MOVe Logistics & Warehousing Limited
12,49212,492
TNL International Limited170170
MOVe (McAuleys) Limited
-555
TNL International Australia Pty Limited197197
Total14,66215,217
The Group tests goodwill for impairment using the higher of value in use calculations with cash flow projections based
on a five-year period and the fair value less costs to sell. Management has prepared an upside, downside and base
scenario for each CGU. Each of these include the 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.
As part of the impairment assessment , MOVE (McAuley’s) Limited goodwill of $555,000 has been fully impaired as a result
of a decrease in sales. The impairment charge is recognised in the non operating expenses in the statement if Profit or
Loss and Other Comprehensive Income. No other class of assets have been impaired. Management has concluded that
there are no other impairments for any other of the CGUs at 30 June 2022. The MOVe Logistics & Warehousing Limited
and MOVe Freight Limited CGU’s have significant goodwill balances at 30 June 2022.
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 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%
30 June 2022
MOVe Logistics &
Warehousing Limited
10.3%13.8%1.2%2.9%1.9%0.0% - 1.0%
MOVe Freight Limited
10.3%13.1%1.2%4.6%3.0%0.0% - 1.0%
*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 projections, market conditions and opportunities for growth within the
industry.
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 revenue for both new and existing customers in both
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 33
warehousing and freight divisons. 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 2022 by the following amounts:
• MOVe Logistics & Warehousing Limited CGU: $30.2m
• MOVe Freight Limited CGU: $21.5m
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 2022 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.
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 asset/(liabilities)
Opening
balance
Recognised
in profit or
loss
Acquisition of
subsidiaries
Transfer of
liabilities to
held for sale
Deferred tax
on disposal
group
Closing
balance
$000$000$000$000$000$000
2021
Property, plant and equipment(7,661)(347)(104)--(8,112)
Right of use assets / lease
liability
967909---1,876
Provisions and accruals3,098200---3,298
Carry forward losses256----256
Total deferred income tax(3,340)762(104)--(2,682)
2022
Property, plant and equipment(8,112)904-1,686134(5,388)
Right of use assets / lease
liability
1,876733 -(8)172,618
Provisions and accruals3,298(320)-(92)332,919
Carry forward losses256(256)----
Total deferred income tax(2,682)1,061-1,586184149
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 34
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
$000
At 1 July 20202,313
Additional provisions298
Utilised / released to profit or loss(156)
At 30 June 20212,455
At 1 July 20212,455
Additional provisions61
Utilised / released to profit or loss(230)
Transfers to liabilities classified as held for sale(20)
At 30 June 20222,266
a. Information about individual provisions 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 202230 June 2021
Shares$000Shares$000
Issued & paid-up capital - ordinary shares
Balance at the beginning of the period87,684,88237,05487,684,88237,054
Shares issued - LTI (refer note 20)45,87734--
Shares issued - AREO 128,654,37038,100--
Balance at the end of the period116,385,12975,18887,684,88237,054
1 On 26 October 2021 the Board approved a capital raise of approximately $40m via a fully underwritten 1 for 3.06
Accelerated Renounceable Entitlement Offer (AREO). The issue was fully subscribed and shares totalling 28,654,370
were issued on 5 November 2022 and 18 November 2022. Funds raised from the shares issued were used to repay debt,
improve balance sheet flexibility and fund its capital growth. The balance of share capital is net of directly attritbutable
costs of $2 million.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 35
15. CASH FLOW INFORMATION
15.1 CASH GENERATED FROM OPERATIONS
2022
$000
2021*
$000
Reported loss after tax(2,539)(1,296)
Non-cash items
Gain on lease modification(190)(121)
Depreciation expense39,64941,010
Amortisation expense2,5062,255
Bad debts203159
Amortisation of bank fees101168
Non cash movements on convertible note410-
Impairment of investment in associates6195
Foreign exchange losses on operating activities(231)24
Non trading expenses1,6201,283
Share based payments657
Cumulative translation adjustment67(9)
41,66343,625
Impact of changes in working capital
Tax receivable / deferred tax(388)(2,787)
Trade and other receivables(12,546)(4,837)
Creditors and accruals/employee entitlements6,1511,272
Creditors relating to purchase of PPE(403)(547)
Inventories(220)(6)
34,25736,720
Items classified as investing or financing activities
Profit on disposal of property, plant and equipment(423)(633)
Loss for associates103149
Net cash flow from operating activities33,93736,236
*Certain amounts have been restated to reflect adjustments relating to discontinued operations note 21.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 36
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.
2022
$000
2021
$000
Cash and cash equivalents14,94013,214
Lease liability - repayable within one year(26,393)(27,310)
Borrowings - repayable within one year (including overdraft)(3,713)(67,352)
Lease liability - repayable after one year(133,338)(144,218)
Borrowings - repayable after one year(24,324)(2,811)
Convertible note - repayable after one year(7,792)(7,395)
Net debt(180,620)(235,872)
Cash and liquid investments14,94013,214
Liability - incremental borrowing rate(159,731)(171,528)
Borrowings - fixed interest rates(27,797)(31,071)
Borrowings - variable interest rates(8,032)(46,487)
Net debt(180,620)(235,872)
Liabilities from financing activities
Convertible
note
BorrowingsLeasesSubtotalCash/bank
overdraft
Total
$000$000$000$000$000$000
Net debt as at 1 July
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
movements
805(142)(7,033)(6,370)-(6,370)
Net debt as at 30
June 2021
(7,395)(70,163)(171,528)(249,086)13,214(235,872)
Cash flows-42,22635,34277,5681,72679,294
Lease additions--(6,834)(6,834)-(6,834)
Other non-cash
movement
(397)(100)(16,711)(17,208)-(17,208)
Net debt as at 30
June 2022
(7,792)(28,037)(159,731)(195,560)14,940(180,620)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 37
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 results up to 30 June 2022 have been incorporated in the consolidated financial statements.
SubsidiaryShareholding
30 June 2022
Shareholding
30 June 2021
Balance
date
Country of
Incoporation
Principal activity
MOVe Freight Limited
100%100%30 JuneNew ZealandTransport operator
MOVe Fuel Limited
100%100%30 JuneNew ZealandTransport operator
Alpha Custom Services
Limited
60%60%30 JuneNew ZealandInternational freight
forwarder
Pacific Asset Leasing
Limited
100%100%30 JuneNew ZealandAsset leasing
MOVe International
Limited
100%100%30 JuneNew ZealandShipping agent and
logistics
MOVe (McAuleys)
Limited
100%100%30 JuneNew ZealandTransport operator
MOVe Logistics &
Warehousing Limited
100%100%30 JuneNew ZealandWarehousing and
distribution
Southern Fleet Leasing
Limited
100%100%30 JuneNew ZealandAsset leasing
MOVe (NZL) Limited
100%100%30 JuneNew ZealandWarehousing and
distribution
TNL International Limited50%50%30 JuneNew ZealandInternational freight
forwarder
Appian Transport Limited100%100%30 JuneNew ZealandNon trading
Global Logistics Group
Limited
100%100%30 JuneNew ZealandNon trading
MOVe Specialist Lifting
and Transport Limited
100%100%30 June
New Zealand
Heavy Haulage
MOVe Investments
Limited
100%100%30 JuneNew ZealandCorporate services
Pacific Liquid Logistics
Limited
100%100%30 JuneNew ZealandNon trading
TNL International
(Australia) Pty Limited
40%40%30 JuneAustraliaInternational freight
forwarder
MOVE (ATL) Limited was amalgamated into MOVE Frieght Limited from 1 April 2022.
MOVE Specialist Lifting and Transport Limited is held for sale (refer note 21).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 38
16.2 INTERESTS IN ASSOCIATES
Set out below are the associates of the Group as at 30 June 2022 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
20222021
2022
$000
2021
$000
UNITE Logistics Limited
1
New Zealand-50%Associate
Equity method
-88
Emerald Truck Services Limited
2
New Zealand50%50%AssociateEquity method271329
Total271417
1
UNITE Logistics Limited is a transport services provider for the Auckland and surrounding area’s construction industry, specialising in crane transport. 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
2022202120222021
$000$000$000$000
Summarised balance sheet
Current assets
-946802900
Non-current assets
-1,643520441
Current liabilities
-955374380
Non-current liabilities
-1,694219143
Net assets
-(60)729818
Summarised statement of comprehensive income
Revenue
3,0427,0763,5802,895
Profit after tax from continuing operations
(90)(340)(115)31
Investment carrying amount reconciliation
Opening balance
88353329225
Consolidation of advance to associate
218---
Disposal/Acquisition
1
(200)-
-
88
Impairment of investment
(61)(95)--
Earnings from associates
(45)(170)(58)16
Closing balance
-88271329
1
On 30 November 2021 the group disposed on its investment in Unite Logistics Ltd for $200,000. Net of its advance to the associate the group recorded a loss on
disposal of $61,000.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 39
17. CONTINGENCIES
Bank Guarantee
The Group provides (via ANZ Bank) the below guarantees.
2022
$000
2021
$000
Bank guarantees - property5,1406,187
Bank guarantees - fuel purchases4,5004,500
Bank guarantees - other7575
Total9,71510,762
18. CAPITAL COMMITMENTS
Capital expenditure contracted for at the reporting date but not yet incurred is as follows:
2022
$000
2021
$000
Trucks and trailers1,841359
Other assets18122
Total1,859481
19. RELATED-PARTY TRANSACTIONS
19.1 TRANSACTIONS WITH KEY MANAGEMENT
a. Key management compensation
Key management includes Directors, the CEO and his direct reports:
2022
$000
2021
$000
Salaries, short term and post employee benefits4,3923,474
Directors fees471430
19.2 TRANSACTIONS WITH OTHER RELATED PARTIES
The following transactions occurred with related parties:
2022
$000
2021
$000
Sales and purchases of goods and services
Sales of services to associates296814
Purchases of services from associates9421,986
Purchases from entities controlled by key management employees165140
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 40
2022
$000
2021
$000
Outstanding balances arising from sales and purchases of
services
Trade receivables from associates2128
Trade payables to associates22164
Trade payables to entities controlled by key management
employees
52-
The Group determines the above balances are fully collectible.
2022
$000
2021
$000
Advances to related parties
UNITE Logistics Limited-217
20. SHARE BASED PAYMENTS
The group had a long term incentive plan for selected employees which has since been withdrawn by the Diretcors
as per the discretion allowed for under the plan rules. No options were granted during the year ended 30 June 2022.
There are some existing share options under the plan where the vesting of these is dependant on certain performance
standards being met which expire 30 June 2023.
Share-based payment reserve
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 was an equity settled-share-based payment
which provided 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.
Existing options
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 have been 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 41
20. SHARE BASED PAYMENTS (CONTINUED)
Set out below are summaries of options granted under the plan:
Average exercise
price per share
option
Number of
options
As at 30 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-
-
As at June 2021$0.90881,786
Granted during the year-
Exercised during the year(45,877)
Forfeited during the year(661,273)
As at 30 June 2022$0.70174,636
Vested and exercisable at 30 June 2022--
Share options outstanding at 30 June have the following expiry dates and exercise prices:
Grant dateExpiry dateExercise price
Share options
30 June 2022
Share options
30 June 2021
9 October 2020 (2019 LTI)130 June 2022$1.33-284,615
9 October 2020 (2020 LTI)30 June 2023$0.70174,636597,171
Total174,636881,786
Weighted average remaining contractual life of
options outstanding at end of period
1.0 years
1. Performance measure not achieved so options granted were forfeited
Total expenses arising from share-based payment transactions recognised during the period as part of the employee
expenses were as follows:
June
2022
June
2021
$000$000
Share based employee expenses657
657
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 42
21. DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE
In May 2022, the Board approved and announced its intention to undertake a formal sales process to investigate the
market interest in the sale/asset disposal of its subsidiary company MOVE Specialist Lifting & Transport Ltd which operates
in the Specialist segment. The Specialist company has been classified as held for sale and is a discontinued operation
under NZ IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. Entities are required to measure non-
current assets and liabilities that are held for sale at the lower of their carrying amount and fair value less costs to
sell.
As at year end there has been no offer accepted for the sale of MOVE Specialist Lifting and Transport Ltd. The Group
expects to dispose of this company within the next 12 months.
Results of discontinued operations
June
2022
June
2021
$000$000
Revenue14,33924,301
Operating expenses(12,479)(17,467)
Depreciation & amortisation expenses(2,512)(3,097)
Net finance expense(133)(126)
Net (loss)/profit before tax(785)3,611
Income tax credit/ (expense)220(1,011)
Net (loss)/profit from discontinued operations after tax(565)2,600
Basic and diluted earnings per share (cents per share)(0.53)2.96
Cash flows from/(used in) discontinued operation
Net cash from operating activities6006,982
Net cash from/(used in) investing activities492(925)
Net cash used in financing activities(874)(873)
Net cash flows for the year2185,184
The following assets and liabilities are classified as held for sale:
Property, plant and equipment19,248-
Trade and other receivables2,924-
Right of use assets2,733-
Intangible assets255-
Inventories103-
Assets classified as held for sale25,263-
Lease liability2,761-
Employee entitlements465-
Provision for other liabilities and charges20-
Deferred tax liability1,586-
Trade and other payables1,317-
Liabilities associated with assets classified as held for sale6,149-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 43
22. EVENTS AFTER THE REPORTING DATE
On 1 July 2022 the offical quotation of MOVe shares (MOV) commenced enabling shareholders to trade their MOVe shares
on the ASX.
On 9 August 2022 the Group signed a commitment for 4,850,000 Euro’s to purchase the Atlas Wind Vessel in order to
facilitate its multi modal strategy.
On 23 August 2022, MOVE Logistics Group (through its wholly owned subsidiary, Pacific Liquid Logistics Limited) entered into
a conditional sale and purchase agreement to acquire the business and assets of Fluidex Transport, a bulk liquid and bulk
dry powder transport provider operating throughout New Zealand for a purchase consideration totalling approximately
$15.2 million. Completion and settlement are expected to occur on 31 October 2022 subject to appropriate final due
diligence completion and any conditions precedent met.
44
ANNUAL FINANCIAL STATEMENTS
PricewaterhouseCoopers, PwC Centre, 60 Cashel Street, PO Box 13244, Christchurch 8141, New Zealand
T: +64 3 374 3000, pwc.co.nz
Independent auditor’s report
To the shareholders of Move Logistics Group Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Move 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 2022, 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 2022;
● the consolidated statement of profit or loss & 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 areas of half year review procedures and with
providing other assurance 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.
PwC
Description of the key audit matter How our audit addressed the key audit matter
Carrying value of Goodwill
As at 30 June 2022, the Group had a total
goodwill balance of $14.7m, as disclosed
in note 13.3. This is allocated across five
cash generating units (CGU's).
Management performed value-in-use
(VIU) impairment tests at 30 June 2022
using a discounted cash flow model based
on probability-weighted forecast cash
flows for both these CGU's 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 Move Logistics and Warehousing
Limited and Move Freight Limited CGU's
are considered a key audit matter due to
the significant level of management
judgment applied in estimating future cash
flows and other key assumptions in
determining the recoverable amount of
these CGU's.
We obtained the impairment tests prepared by
management for Move Logistics and Warehousing
Limited and Move Freight Limited as these are the two
largest CGU's representing $13.5m of the balance and
understood the process undertaken to prepare the
forecasts and the assumptions used.
We understood the controls that management have in
relation to the impairment assessment of goodwill and
evaluated their design.
We considered management's assessment of the
respective CGUs in the Group and the allocation of
corporate assets in the CGUs.
We gained an understanding of the forecast outlook
for the industry and CGUs, and for the strategic
direction of the business. We compared 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 tested the mathematical accuracy of the models
used ensuring that they utilised the assumptions
disclosed in note 13.3, and that the recoverable
amount calculated was greater than the carrying
amount of the CGU.
We used our 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.
45
ANNUAL FINANCIAL STATEMENTS
PricewaterhouseCoopers, PwC Centre, 60 Cashel Street, PO Box 13244, Christchurch 8141, New Zealand
T: +64 3 374 3000, pwc.co.nz
Independent auditor’s report
To the shareholders of Move Logistics Group Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Move 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 2022, 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 2022;
● the consolidated statement of profit or loss & 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 areas of half year review procedures and with
providing other assurance 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.
PwC
Description of the key audit matter How our audit addressed the key audit matter
Carrying value of Goodwill
As at 30 June 2022, the Group had a total
goodwill balance of $14.7m, as disclosed
in note 13.3. This is allocated across five
cash generating units (CGU's).
Management performed value-in-use
(VIU) impairment tests at 30 June 2022
using a discounted cash flow model based
on probability-weighted forecast cash
flows for both these CGU's 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 Move Logistics and Warehousing
Limited and Move Freight Limited CGU's
are considered a key audit matter due to
the significant level of management
judgment applied in estimating future cash
flows and other key assumptions in
determining the recoverable amount of
these CGU's.
We obtained the impairment tests prepared by
management for Move Logistics and Warehousing
Limited and Move Freight Limited as these are the two
largest CGU's representing $13.5m of the balance and
understood the process undertaken to prepare the
forecasts and the assumptions used.
We understood the controls that management have in
relation to the impairment assessment of goodwill and
evaluated their design.
We considered management's assessment of the
respective CGUs in the Group and the allocation of
corporate assets in the CGUs.
We gained an understanding of the forecast outlook
for the industry and CGUs, and for the strategic
direction of the business. We compared 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 tested the mathematical accuracy of the models
used ensuring that they utilised the assumptions
disclosed in note 13.3, and that the recoverable
amount calculated was greater than the carrying
amount of the CGU.
We used our 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.
46
ANNUAL FINANCIAL STATEMENTS
PwC
Our audit approach
Overview
Overall group materiality: $1.3m, which represents approximately 2.5% of
Earnings before Interest, Tax, Depreciation and Amortisation (‘EBITDA’).
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.
Following our assessment of the risk of material misstatement, we:
● Full scope audits were performed for 4 of 16 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 one key audit matter, being:
● Carrying value of Goodwill
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.
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.
PwC
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.
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
23 August 2022
Christchurch
47
ANNUAL FINANCIAL STATEMENTS
PwC
Our audit approach
Overview
Overall group materiality: $1.3m, which represents approximately 2.5% of
Earnings before Interest, Tax, Depreciation and Amortisation (‘EBITDA’).
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.
Following our assessment of the risk of material misstatement, we:
● Full scope audits were performed for 4 of 16 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 one key audit matter, being:
● Carrying value of Goodwill
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.
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.
PwC
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.
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
23 August 2022
Christchurch
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.
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