Wiseway Group Limited (ASX: WWG) is a logistics company and one of the top three outbound air freight logistics providers in Australia provides integrated logistics and transportation services. The company has a very strong network of strategically located warehouses and facilities having a nation-wide presence with a large modern fleet of trucks and delivery vehicles. The company’s cross border services include sea freight, customs clearance services, air freight, etc and operates within two segments; general cargo and perishable cargo.
Today, 16th April 2019, the company announced the appointment of Traci Cox as its National Air Freight Manager. Traci is responsible for leading Wiseway’s strategic expansion in the New Zealand market. Traci has more than two decades of experience including senior roles with Kuehne and Nagel, Toll Global Forwarding, Worldwide GSA and DHL.
Wiseway CEO and Co-founder Roger Tong said that he is excited to have an industry veteran to drive the strategic plans. Further, he believes that the company will see revenue contribution from New Zealand at around 10-20% of Group revenues within 2- 3 years.
Furthermore, the appoint of Ms. Cox comes on the back of the company’s recent commitment to lease an approximately 2,500m² facility in Airport Oaks precinct which is at close proximity to Auckland International Airport. The company intends to use this facility to meet the demand from Chinese customers. As per Bureau of Infrastructure, Transport, and Regional Economics in 2018, Auckland was the 2nd largest outbound air freight destination and 3rd largest inbound air freight destination to Australia.
On 15th April 2019, the company announced its relocation to a prime industrial area of Kewdale which is close to major transport linkages including road, rail and airport. The new property is 5,700m² large including a warehouse of around 1,200m².
This new facility plays an important role in providing the company with immediate access to substantially increased warehousing and operational capability. Additionally, the facility has Regulated air cargo agent (RACA) compliance and is already scanning all outbound airfreight. The facility can provide the company with more capability upon making further investments like cold store facilities, Bonded warehouse, inbound customs clearance services, handling of sea freight, PMC packaging (which helps in the packaging of freight directly in aircraft unit loading devices), etc.
The facility is not a purchase but being leased from RFT Investment Management Pty Ltd (RFT) which is controlled by Wiseway directors, Roger Tong and Florence Tong. The terms and conditions of the lease is in line with the terms and conditions of the other properties leased by the Company from RFT. These terms are;
- The initial term of the lease will be three years, but the company has an option to extend it further to an additional three years for a total of four times.
- The company also has an option to terminate the lease if some business metrics are not being met during the financial year ending 30th June 2022.
- The initial base rent has been set to $135,000 per annum with annual CPI indexation, including on exercise of any option. This base rent has been determined based on an independent rental assessment.
The independent, non-executive directors have reviewed the lease terms and conditions In accordance with the company’s policies procedures with respect to dealing with related party transactions. Based on this the board believes that the terms and conditions are consistent and not favourable to any party in an unfair way.
Recently on 11th April 2019, there has been a significant change in the company’s top management. Mr. Geoff Raby will step down as the Chair of the company and Mr. Nick Bolkus will take his place with effect from 30th April 2019. Also, Mr. Geoff Raby and Mr. Peter Hogan will step down as Non-Executive Directors and Mr. Michael Hughes has agreed to take this role.
The company has a market capitalisation of $38.74 million. The stock is currently trading at A$0.335 on ASX (As at 16 April 19, AEST 1:44 PM) up by 4.68% as compared to previous day close. In the last three months, the stock has delivered a return of negative 25.58% while YTD return stands at negative 22.89%.
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