Finalising New Funding Arrangements, Support Going Concern

Company Announcement
28 August 2024

MOVE FINALISING NEW FUNDING ARRANGEMENTS, SUPPORTS GOING
CONCERN
New funding arrangements
Transport and logistics group, MOVE Logistics Group Limited (NZX/ASX: MOV), advises that it is in
the process of completing renewed funding arrangements with ANZ Bank New Zealand Limited and
entering into new debtor invoice funding with Pacific Invoice Finance.
The company has the support of ANZ Bank to extend the tenure of its facility for a further 12 months
to 31 August 2025, alongside amended covenants which are aligned to expected performance.
MOVE is in the process of documenting the amended arrangements with ANZ Bank. As at 30 June
2024, MOVE’s bank debt was $36.0m (inclusive of $9m in bank guarantees).
MOVE also advises that it is in the process of entering into a new funding arrangement with Pacific
Invoice Finance of up to $21m for a minimum 18-month term and, with shareholder approval, has
the option to extend this up to $25m. This will be used to pay down the ANZ facility to ~$20m
(inclusive of bank guarantees) by 31 October 2024, and for corporate and working capital
requirements.
Going Concern
MOVE intends to provide its audited financial statements to the market on 29 August 2024. As part
of the preparation of its FY24 financial statements, Directors have conducted a comprehensive
assessment of certain events, conditions, and related material uncertainties.
The financial statements have been prepared on a going concern basis. The Directors acknowledge
that in the current trading environment, material uncertainties exist. These are primarily as a result
of:
• Continued challenging economic environment and resulting operational challenges – slow
economic growth has led to reduced customer demand, lower revenues and increased
financial pressure on the Group’s operations
• A significant change program is being implemented – the Board has engaged external
advisors to support the execution of a turnaround program, together with the appointment
of an interim CEO who has the experience required to execute the plan
• The risk that forecasted results are not met and as a result key terms of covenants are not
complied with.
With the above facilities and in conjunction with prudent working capital management, the Group is
comfortable that sufficient cash and debt facilities are available to meet obligations going forward
and manage the Group’s liquidity position appropriately.
The Board would like to thank its financing partners, ANZ and Pacific Invoice Finance, for their
support of the business.
ENDS

For further information, please contact:
CFO Lee Banks, t: +64 27 525 2876 e: Lee.Banks@movelogistics.com
Media assistance, 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.