One Stock With Decent Long-term Growth Prospects

As the market participants are aware, the broader global economy witnessed the negative impacts of coronavirus pandemic. The impact was also felt on a range of companies. This was because lockdowns were imposed to restrict its spread. However, there are some companies which could perform well moving forward. This company has released decent results for H1 FY 2021. This company has also done some notable appointments. This company has been focusing towards its strategic priorities which could help it moving forward. The stock price of this company has witnessed a rise of ~42.5% in 6 months as well as ~87.8% in 9 months.

TIL Logistics Group Ltd

Summary

  • TLL is changing the name of the company to MOVe Logistics Group Limited effective from 4th August 2021. Notably, each of the company’s divisions would be operating under the MOVe brand.
  • TLL recently has entered into new funding arrangements with ANZ Bank New Zealand Limited and UDC Finance Ltd that offer improved terms as well as the longer tenure.
  • The company has posted a decent performance in H1FY21 and its sales revenue rose 3.0% YoY to $179.2 million.

TIL Logistics Group Ltd (NZX: TLL) is one of the leading domestic freight and logistics companies in New Zealand. The company has a network of branches, depots, cross docks, and warehouses. It provides a comprehensive end-to-end supply chain service in the areas of freight, bulk liquids, warehousing & logistics, specialist lifting and transport, and international freight forwarding.

Result Performance (For the 6 Months Ended 31st December 2020) (H1 FY 2021)

The company has delivered a decent performance in H1FY21 with sales revenue growth of 3.0% YoY to $179.2 million. In line with improved sales performance coupled with lower operating expenses, EBITDA rose to $32.9 million. Resultantly, it posted a net profit of $2.7 million against a net loss of $2.2 million in the prior comparative period. The company has stated that the positive operating cashflow movement was witnessed because of the better trading performance as well as effective working capital management. However, it needs to be noted that no interim dividend was declared.

Consolidated Financial Snapshot (Source: Company Reports)

Change in the Name of the Company

The company, on 28 July 2021, declared that the name of the company will be changed to MOVe Logistics Group Limited from TIL Logistics Group Limited - signalling a new era in its over 150 years of history. The company’s ticker code will change to MOV effective from 4 August 2021. The ISIN will continue to remain as NZMOWE0001S5.

Going ahead, the company’s five divisions will operate under the MOVe brand, consolidating its diverse range of services into one integrated end-to-end supply chain logistics solution for customers.

Do Read: Which are the top 10 transportation stocks in New Zealand?

Entered into New Financing Arrangements

TLL recently has re-established its relationships as financing partners with ANZ Bank New Zealand Limited and UDC Finance Limited. The new facilities with ANZ as well as UDC Finance Ltd is anticipated to be used to replace the company’s existing bank debt to ASB Bank Limited. The facilities would also be used for general corporate, vehicle finance, and working capital requirements.

The new funding arrangements would be offering improved terms as well as longer tenure.

The company has stated that ANZ was TLL’s banking relationship earlier also before the listing in the year 2017 as well as has the proper understanding of the broader industry and the company.

Executive Appointment

The company has selected Chris Dunphy, who has significant experience in the transport and logistics sector, for the post of executive director, effective 27 July 2021. Notably, he was the former general manager of Mainfreight’s international division as well as the executive director of MFT. Further, the company has appointed Mark Newman as director.

Recent Update

The company, on 1st July 2021, declared that its founder shareholders have sold down in aggregate ~18.25 million shares (comprising ~20.8% of the TLL shares on issue) at $1.00 a share. This was done in the private placement to numerous investors.

Also Read: Broader Market Gained Today, Primarily Led by Buying in Energy, Industrials, and Materials Stocks

Stock Information

The company sustains its emphasis on strategic priorities, including improvement initiatives as well as the freight turnaround programme with progress being achieved in key areas. The company is expecting a modest profit for FY21 as it includes certain non-trading adjustments. The reported profit will reflect investment towards the improvement programme along with higher property costs related to the expanded warehousing network as well as the non-cash adjustment for the discontinued IT project. The company has stated that progress is being made on the improvement initiatives, mainly in Freight.

The stock of the company ended the session at $1.540, up by 6.21% on 30th July 2021.

Do Read: What are the key highlights of the NZ sharemarket?

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