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TIL Logistics posts first-half loss on listing

TIL Logistics posts first-half loss on listing, acquisition costs, affirms full-year guidance

By Jonathan Underhill

Feb. 28 (BusinessDesk) - TIL Logistics Group, the freight and logistics company that went public with a reverse listing on the NZX in December, posted a first-half loss on listing and acquisition costs and said it expects to meet its full-year targets.

The loss was $15.7 million in the six months ended Dec. 31 from a profit of $2 million a year earlier, the New Plymouth-based company said in a statement. Sales jumped to $164 million from $106.7 million.

The company's inaugural results as a listed company include $21 million of what it called non-trading costs. Included in that is $6.5 million of costs for the reverse listing, $11.4 million of share-based payments and a $3.4 million adjustment related to an earnout for Move Logistics in the prior period. Excluding those costs, earnings before interest, tax, depreciation and amortisation rose 10.7 percent to $14.3 million in the first half, it said.

Since the first half of the previous year, TIL has acquired Move and NZL Group. It said Move, acquired in June last year, "has expanded through acquisition and is currently outperforming expectations," which had led to the earnout provision.

In its listing disclosure documents, TIL forecast a statutory loss of $10.3 million for full-year 2018, and a profit of $11 million on sales of $335.5 million the following year, when it expects to pay dividends of 7.4 cents per share. Today the company said it was confident of meeting those targets, excluding non-trading costs. In the first half, earnings and revenue exceeded TIL's expectations "reflecting the continuing strong performance of the company’s businesses."

"Growth by acquisition is a part of our strategy and we have identified a number of acquisition opportunities," said chair Trevor Janes. "In addition, management is focused on continued organic growth - driving efficiencies, leveraging scale, expanding the offer and growing TIL Logistics’ existing businesses."

According to its website, TIL Logistics began in 1869 as Hook Bros and in the 1990s embarked on an acquisition strategy that saw the company expand its national reach. Its brands include Roadstar, TNL, TIL Freight, Hooker Pacific, and NZL Group.

Freighting revenue was about $112 million, generating adjusted ebitda of $4.4 million, while logistics had sales of $48.4 million and earnings of $4.1 million. Its asset management unit, which holds the majority of the group's trucks and trailers which it then leases to other businesses in the group, had ebitda of $5.2 million.

The shares last traded at $1.93 and have fallen about 24 percent since listing.

(BusinessDesk)

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