Full Year 2026 MOVE Logistics Group Ltd Earnings Call
Speaker #2: If you'd like to ask a question via the phone, you'll need to press the star key followed by the number 1 on your telephone keypad.
Speaker #2: If you'd like to ask a question via the webcast, please enter it into the 'Ask a Question' box and click Submit. I'll now hand the conference over to Mr. Paul Millward, CEO.
Speaker #2: Please go ahead.
Speaker #3: Hi everyone, and thank you for joining us. I’m Paul Millward, CEO of MOVE, and with me is Lee Banks, our CFO. Today, we will talk through our performance and results for FY26, and the progress we’re making on our new Horizons four-year roadmap.
Paul Millward: Hi everyone, and thank you for joining us. I am Paul Millward, CEO of MOVE, and with me is Lee Banks, our CFO. Today we will talk through our performance and results for FY26 and the progress we are making on our New Horizons four-year roadmap. We will be happy to take your questions at the end of the presentation. 2 years ago, we set out to reshape MOVE into a stronger, more resilient business. FY26 is evidence that our strategy is delivering. We delivered on our commitment to return to positive normalized earnings and also reported positive free cash flow and a return to profit after tax. All our businesses delivered improvements with profitable earnings from 3 of the 4 businesses. Warehousing, however, continues to perform below our expectations and I will talk to the actions we are taking there in more detail shortly.
Paul Millward: Hi everyone, and thank you for joining us. I am Paul Millward, CEO of MOVe, and with me is Lee Banks, our CFO. Today we will talk through our performance and results for FY 2026 and the progress we are making on our New Horizons four-year roadmap. We will be happy to take your questions at the end of the presentation. 2 years ago, we set out to reshape MOVe into a stronger, more resilient business. FY 2026 is evidence that our strategy is delivering. We delivered on our commitment to return to positive normalized earnings and also reported positive free cash flow and a return to profit after tax. All our businesses delivered improvements with profitable earnings from 3 of the 4 businesses. Warehousing, however, continues to perform below our expectations and I will talk to the actions we are taking there in more detail shortly.
Speaker #3: We'll be happy to take your questions at the end of the presentation. Two years ago, we set out to reshape MOVE into a stronger, more resilient business.
Speaker #3: FY26 is evidence that our strategy is delivering. We delivered on our commitment to return to positive normalized earnings, and also reported positive free cash flow and a return to profit after tax.
Speaker #3: All our businesses delivered improvements, with profitable earnings from three of the four businesses. Warehousing, however, continues to perform below our expectations, and I'll talk to the actions we are taking there in more detail shortly.
Speaker #3: The last two years were all about resetting the business. We are now firmly focused on the step-up phase of our roadmap, with the primary goals being customer value and operational excellence, alongside smart and profitable business growth.
Paul Millward: The last 2 years were all about resetting the business. We are now firmly focused on the step-up phase of our roadmap, with the primary goals being customer value, operational excellence, alongside smart, profitable business growth. We still have a lot of work to do, but we are making good progress. Looking at our top-line financials, revenue increased slightly despite the subdued trading conditions. This was pleasing to see and driven from a stronger H2. Importantly, we delivered an 11.6% improvement in normalized earnings and a return to profit. This is a significant milestone and demonstrates that the actions taken over the past 2 years are working. Gross margin dollars and percentage also continued to improve, reflecting better pricing discipline, productivity improvements, and operating leverage from significant cost-out initiatives over the last 2 years.
Paul Millward: The last 2 years were all about resetting the business. We are now firmly focused on the step-up phase of our roadmap, with the primary goals being customer value, operational excellence, alongside smart, profitable business growth. We still have a lot of work to do, but we are making good progress. Looking at our top-line financials, revenue increased slightly despite the subdued trading conditions. This was pleasing to see and driven from a stronger H2. Importantly, we delivered an 11.6% improvement in normalized earnings and a return to profit. This is a significant milestone and demonstrates that the actions taken over the past 2 years are working. Gross margin dollars and percentage also continued to improve, reflecting better pricing discipline, productivity improvements, and operating leverage from significant cost-out initiatives over the last 2 years.
Speaker #3: We still have a lot of work to do, but we're making good progress. Looking at our top-line financials, revenue increased slightly despite the subdued trading conditions.
Speaker #3: This was pleasing to see and driven from a stronger second half. Importantly, we delivered an 11.6% improvement in normalized earnings, and a return to profit.
Speaker #3: This is a significant milestone and demonstrates that the actions taken over the past two years are working. Gross margin dollars and percentage also continued to improve.
Speaker #3: Reflecting better pricing discipline, productivity improvements, and operating leverage from significant cost-out initiatives over the last two years. These gains have been achieved while maintaining the capability and network coverage we require to be a scale player.
Paul Millward: These gains have been achieved while maintaining the capability and network coverage we require to be a scale player. Free cash flow is an important focus and this has improved to NZD 6.3 million, with net debt reducing almost 40% year-on-year. Lee will talk to the financials in more detail shortly. in August last year, we introduced our four-year New Horizons roadmap. To recap briefly, this sets out our pathway to FY28 as we reset, step up, and then stand out. We have clear goals in place and our focus is firmly on achieving these and becoming the preferred logistics provider in Aotearoa New Zealand. The reset phase of our roadmap is now complete. We have simplified the business, significantly reduced costs, strengthened the balance sheet, optimized our network, improved productivity, and embedded greater commercial discipline across the organization.
Paul Millward: These gains have been achieved while maintaining the capability and network coverage we require to be a scale player. Free cash flow is an important focus and this has improved to NZD 6.3 million, with net debt reducing almost 40% year-on-year. Lee will talk to the financials in more detail shortly. in August last year, we introduced our four-year New Horizons roadmap. To recap briefly, this sets out our pathway to FY28 as we reset, step up, and then stand out. We have clear goals in place and our focus is firmly on achieving these and becoming the preferred logistics provider in Aotearoa New Zealand. The reset phase of our roadmap is now complete. We have simplified the business, significantly reduced costs, strengthened the balance sheet, optimized our network, improved productivity, and embedded greater commercial discipline across the organization.
Speaker #3: Free cash flow is an important focus, and this has improved to $6.3 million, with net debt reducing almost 40% year-on-year. Lee will talk to the financials in more detail shortly.
Speaker #3: In August last year, we introduced our four-year New Horizons roadmap. To recap briefly, this sets out our pathway to FY28 as we reset, step up, and then step down.
Speaker #3: We have clear goals in place, and our focus is firmly on achieving these and becoming the preferred logistics provider in Aotearoa New Zealand. The reset phase of our roadmap is now complete.
Speaker #3: We have simplified the business, significantly reduced costs, strengthened the balance sheet, optimized our network, improved productivity, and embedded greater commercial discipline across the organization.
Speaker #3: Today, MOVE is a leaner, more capable, and focused organization, with a cost base and network better aligned to market conditions. The fragile logistics sector has long been recognized as a leading indicator for the broader economy.
Paul Millward: Today, MOVE is a leaner, more capable, and focused organization with the cost base and network better aligned to market conditions. The freight logistics sector has long been recognized as a leading indicator for the broader economy. When activity is down, fewer goods need to be moved around the country. Conversely, as confidence returns, freight is often one of the first sectors to recover. This was the environment we operated in throughout FY26. Initial momentum earlier in the year was then tempered by significant global uncertainty towards year-end. Customer demand remained inconsistent and competition for available work remained intense. Across much of the industry, pricing pressure continued as operators competed for lower freight and warehousing volumes. Higher fuel prices in H2 impacted demand in certain sectors such as hospitality and FMCG, and obviously in the fuel sector directly as Kiwis had less disposable income in their pockets.
Paul Millward: Today, MOVe is a leaner, more capable, and focused organization with the cost base and network better aligned to market conditions. The freight logistics sector has long been recognized as a leading indicator for the broader economy. When activity is down, fewer goods need to be moved around the country. Conversely, as confidence returns, freight is often one of the first sectors to recover. This was the environment we operated in throughout FY 2026. Initial momentum earlier in the year was then tempered by significant global uncertainty towards year-end. Customer demand remained inconsistent and competition for available work remained intense. Across much of the industry, pricing pressure continued as operators competed for lower freight and warehousing volumes. Higher fuel prices in H2 impacted demand in certain sectors such as hospitality and FMCG, and obviously in the fuel sector directly as Kiwis had less disposable income in their pockets.
Speaker #3: When activity is down, fewer goods need to be moved around the country. Conversely, as confidence returns, freight is often one of the first sectors to recover.
Speaker #3: This was the environment we operated in throughout FY26. Initial momentum earlier in the year was then tempered by significant global uncertainty towards year-end. Customer demand remained inconsistent, and competition for available work remained intense.
Speaker #3: Across much of the industry, pricing pressure continued as operators competed for lower freight and warehousing volumes. Higher fuel prices in H2 impacted demand in certain sectors, such as hospitality and FMCG.
Speaker #3: And obviously, in the fuel sector directly, as Kiwis had less disposable income in their pockets. Against that backdrop, delivering positive normalized earnings represents an important achievement and does demonstrate that the structural changes we've made over the past two years are delivering tangible benefits.
Paul Millward: Against that backdrop, delivering positive normalized earnings represents an important achievement and does demonstrate that the structural changes we've made over the past two years are delivering tangible benefits. Quick snapshot of our results by division. MOVE operates four businesses, with three of the four businesses growing top line, whilst all our businesses improved their normalized earnings performance compared with the prior year. This reflects stronger execution and better commercial discipline. The successful freight turnaround has resulted in growing revenue translating into positive earnings. Customer relationships have been strengthened and disciplined cost management and operational improvements have driven increased profitability. Freight still remains sensitive to economic conditions, but the business is now significantly better positioned than it was two years ago. Our fuel partnership with Z Energy continues to perform well, and we have a close working relationship with them.
Paul Millward: Against that backdrop, delivering positive normalized earnings represents an important achievement and does demonstrate that the structural changes we've made over the past two years are delivering tangible benefits. Quick snapshot of our results by division. MOVe operates four businesses, with three of the four businesses growing top line, whilst all our businesses improved their normalized earnings performance compared with the prior year. This reflects stronger execution and better commercial discipline. The successful freight turnaround has resulted in growing revenue translating into positive earnings. Customer relationships have been strengthened and disciplined cost management and operational improvements have driven increased profitability. Freight still remains sensitive to economic conditions, but the business is now significantly better positioned than it was two years ago. Our fuel partnership with Z Energy continues to perform well, and we have a close working relationship with them.
Speaker #3: Quick snapshot of our results by division. MOVE operates four businesses, with three of the four businesses growing top-line, while all our businesses improved their normalized earnings performance compared with the prior year.
Speaker #3: This reflects stronger execution and better commercial discipline. The successful freight turnaround has resulted in growing revenue, translating into positive earnings. Customer relationships have been strengthened, and disciplined cost management and operational improvements have driven increased profitability.
Speaker #3: Freight still remains sensitive to economic conditions, but the business is now significantly better positioned than it was two years ago. Our fuel partnership with Zed Energy continues to perform well, and we have a close working relationship with them.
Speaker #3: One initiative we have coming up in the first half of FY27 is the launch of a new customer portal. This will provide our customers with greater visibility, reduce incoming inquiries, and make MOVE easier to do business with.
Paul Millward: One initiative we have coming up in the first half of FY27 is the launch of a new customer portal. This will provide our customers with greater visibility, reduce incoming inquiries, and make MOVE easier to do business with. We're also moving all of our businesses to a single data platform, resulting in higher quality and more timely operational data to drive better business insights and support stronger operational decisions in a more timely manner. Warehousing is an important part of our end-to-end supply chain, with many key customers also utilizing freight services. However, its current performance is well below our expectations. The sector has changed dramatically in recent years. During COVID, there was a massive investment in domestic warehousing. As international supply chains opened up again, demand reduced, leaving significant excess capacity.
Paul Millward: One initiative we have coming up in the first half of FY27 is the launch of a new customer portal. This will provide our customers with greater visibility, reduce incoming inquiries, and make MOVe easier to do business with. We're also moving all of our businesses to a single data platform, resulting in higher quality and more timely operational data to drive better business insights and support stronger operational decisions in a more timely manner. Warehousing is an important part of our end-to-end supply chain, with many key customers also utilizing freight services. However, its current performance is well below our expectations. The sector has changed dramatically in recent years. During COVID, there was a massive investment in domestic warehousing. As international supply chains opened up again, demand reduced, leaving significant excess capacity.
Speaker #3: We're also moving all of our businesses to a single data platform, resulting in higher-quality and more timely operational data to drive better business insights and support stronger operational decisions in a more timely manner.
Speaker #3: Warehousing is an important part of our end-to-end supply chain, with many key customers also utilizing freight services. However, its current performance is well below our expectations.
Speaker #3: The sector has changed dramatically in recent years. During COVID, there was a massive investment in domestic warehousing. As international supply chains opened up again, demand reduced, leaving significant excess capacity.
Speaker #3: In addition, customers have reduced their stock holdings in response to lower consumer demand and moved back to just-in-time models or taken warehousing in-house. Signing up to a new warehousing contract is a big business decision and takes time, and currently it's a buyer's market.
Paul Millward: In addition, customers have reduced their stock holdings in response to lower consumer demand and moved back to just-in-time models or taking warehousing in-house. Signing up to a new warehousing contract is a big business decision and takes time, and currently it is a buyer's market. Our focus is on providing customer value through our expert team, strategic locations, and access to our freight network. Our team has done a good job of managing costs and improving productivity, although there is still significant cost pressure from some legacy leases, particularly in Auckland and Christchurch. We have a clear plan and priorities in place. Rebuilding revenue remains the absolute priority. We need to improve utilization through expanding and diversifying our customer base to strengthen profitability. Earnings growth will come from a continued focus on site productivity alongside disciplined pricing, but most importantly, revenue.
Paul Millward: In addition, customers have reduced their stock holdings in response to lower consumer demand and moved back to just-in-time models or taking warehousing in-house. Signing up to a new warehousing contract is a big business decision and takes time, and currently it is a buyer's market. Our focus is on providing customer value through our expert team, strategic locations, and access to our freight network. Our team has done a good job of managing costs and improving productivity, although there is still significant cost pressure from some legacy leases, particularly in Auckland and Christchurch. We have a clear plan and priorities in place. Rebuilding revenue remains the absolute priority. We need to improve utilization through expanding and diversifying our customer base to strengthen profitability. Earnings growth will come from a continued focus on site productivity alongside disciplined pricing, but most importantly, revenue.
Speaker #3: Our focus is on providing customer value through our expert team, strategic locations, and access to our freight network. Our team has done a good job of managing costs and improving productivity, although there is still significant cost pressure from some legacy leases.
Speaker #3: Particularly in Auckland and Christchurch, we have a clear plan and priorities in place. Rebuilding revenue remains the absolute priority. We need to improve utilization by expanding and diversifying our customer base to strengthen profitability.
Speaker #3: Earnings growth will come from a continued focus on site productivity, alongside disciplined pricing, but most importantly, revenue. We've made some changes in key sites to gain certifications and broaden who we can target, and the team is very focused on winning new business.
Paul Millward: We have made some changes in some key sites to gain certifications to broaden who we can target, and the team is very focused to win new business. This was the strongest result from Specialized in three years. It is a very project-focused business, and a lighter H1 was offset by a stronger H2 as a number of larger projects commenced. While some project timing does remain subject to customer delays, the pipeline of work remains encouraging and reinforces our strong position in specialized transport and lifting. Specialized will move to a new improved site this calendar year. The international division delivered a material year-on-year earnings uplift, with the ocean shipping service now delivering consistent profitability. Our freight forwarding and agency businesses are also well-positioned to benefit as international trade and investment activity strengthens. I will now hand over to Leigh to talk to our financial results.
Paul Millward: We have made some changes in some key sites to gain certifications to broaden who we can target, and the team is very focused to win new business. This was the strongest result from Specialized in three years. It is a very project-focused business, and a lighter H1 was offset by a stronger H2 as a number of larger projects commenced. While some project timing does remain subject to customer delays, the pipeline of work remains encouraging and reinforces our strong position in specialized transport and lifting. Specialized will move to a new improved site this calendar year. The international division delivered a material year-on-year earnings uplift, with the ocean shipping service now delivering consistent profitability. Our freight forwarding and agency businesses are also well-positioned to benefit as international trade and investment activity strengthens. I will now hand over to Lee to talk to our financial results.
Speaker #3: This was the strongest result from Specialized in three years. It is a very project-focused business, and a lighter first half year was offset by a stronger second half, as the number of larger projects commenced.
Speaker #3: And while some project timing does remain subject to customer delays, the pipeline of work remains encouraging and reinforces our strong position in specialized transport and lifting.
Speaker #3: Specialists will move to a new, improved site this calendar year. The International Division delivered a material year-on-year earnings uplift, with the ocean shipping service now delivering consistent profitability.
Speaker #3: Our freight forwarding and agency businesses are also well positioned to benefit as international trade and investment activity strengthens. I'll now hand over to Lee to talk to our financial results.
Speaker #2: Thank you. As Paul mentioned, weak market conditions continue to affect customer activity and demand, so we were pleased to report a modest increase in revenue.
Lee Banks: Thank you. As Paul mentioned, weak market conditions continued to affect customer activity and demand, so we were pleased to report a modest increase in revenue. Normalized earnings before tax returned to a positive result of NZD 1.6 million, and profit after tax improved by NZD 15.7 million year-on-year. Operating cash flow strengthened, free cash flow increased, and net debt reduced to NZD 10.4 million. Return on invested capital increased to 10.6%, reflecting stronger underlying performance. Gross margin dollars and percentage both reached their highest levels in three years. This reflects better pricing discipline, productivity gains, and a more efficient cost base. Pleasingly, these gains were achieved despite cost inflation pressure in the H2. The year had two distinct halves, with margin expansion in the H1 as the economy and volumes strengthened, followed by pressure in the H2 from cost inflation linked to the Middle East conflict.
Lee Banks: Thank you. As Paul mentioned, weak market conditions continued to affect customer activity and demand, so we were pleased to report a modest increase in revenue. Normalized earnings before tax returned to a positive result of NZD 1.6 million, and profit after tax improved by NZD 15.7 million year-on-year. Operating cash flow strengthened, free cash flow increased, and net debt reduced to NZD 10.4 million. Return on invested capital increased to 10.6%, reflecting stronger underlying performance. Gross margin dollars and percentage both reached their highest levels in three years. This reflects better pricing discipline, productivity gains, and a more efficient cost base. Pleasingly, these gains were achieved despite cost inflation pressure in the H2. The year had two distinct halves, with margin expansion in the H1 as the economy and volumes strengthened, followed by pressure in the H2 from cost inflation linked to the Middle East conflict.
Speaker #2: Normalized earnings before tax returned to a positive result of $1.6 million, and profit after tax improved by $15.7 million year-on-year. Operating cash flow strengthened, free cash flow increased, and net debt reduced to $10.4 million.
Speaker #2: Return on invested capital increased to 10.6%, reflecting stronger underlying performance. Gross margin dollars and percentage both reached their highest levels in three years. This reflects better pricing discipline, productivity gains, and a more efficient cost base.
Speaker #2: Pleasingly, these gains were achieved despite cost inflation pressure in the second half. The year had two distinct halves, with margin expansion in the first half as the economy and volume strengthened, followed by pressure in the second half from cost inflation, linked to the Middle East conflict.
Speaker #2: We have seen competitors taking market share at what we view as unsustainable pricing, and we are being very disciplined around pricing and ensuring acceptable margins.
Lee Banks: We have seen competitors taking market share at what we view as unsustainable pricing, and we are being very disciplined around pricing and ensuring acceptable margins. The reset phase and cost-out program have made the business more scalable, positioning us to benefit as demand returns. The cost-focused transformation program was completed in FY25, with structural savings now embedded. Total expenses for FY26 remained broadly in line with the prior year, despite inflationary pressure and higher activity levels. Approximately 75% of our lease portfolio is property, with the remainder being fleet. While the vast majority of property leases are competitive, we have some legacy issues, particularly in Auckland and Christchurch, which are putting pressure on costs. In the last year, we successfully exited two leases and reshaped a few others. Transport costs increased as we continued to transition towards an owner-driver model alongside higher fuel prices.
Lee Banks: We have seen competitors taking market share at what we view as unsustainable pricing, and we are being very disciplined around pricing and ensuring acceptable margins. The reset phase and cost-out program have made the business more scalable, positioning us to benefit as demand returns. The cost-focused transformation program was completed in FY25, with structural savings now embedded. Total expenses for FY 2026 remained broadly in line with the prior year, despite inflationary pressure and higher activity levels. Approximately 75% of our lease portfolio is property, with the remainder being fleet. While the vast majority of property leases are competitive, we have some legacy issues, particularly in Auckland and Christchurch, which are putting pressure on costs. In the last year, we successfully exited two leases and reshaped a few others. Transport costs increased as we continued to transition towards an owner-driver model alongside higher fuel prices.
Speaker #2: The reset phase and cost-out program have made the business more scalable, positioning us to benefit as demand returns. The cost-focused transformation program was completed in FY25, with structural savings now embedded. Total expenses for FY26 remained broadly in line with the prior year, despite inflationary pressure and higher activity levels.
Speaker #2: Approximately 75% of our lease portfolio is property, with the remainder being fleet. While the market is competitive, we have some legacy issues, particularly in Auckland and Christchurch, which are putting pressure on costs.
Speaker #2: In the last year, we successfully exited two leases and reshaped a few others. Transport costs increased as we continue to transition towards an owner-driver model, alongside higher fuel prices.
Speaker #2: This was offset by lower people costs. Trading costs also increased year-on-year, driven by growth in our shipping services. Normalized earnings before tax have increased by $27 million over the two years since we launched the new Horizons Roadmap, delivering $1.6 million in FY26.
Lee Banks: This was offset by lower people costs. Trading costs also increased year-on-year, driven by growth in our shipping services. Normalized earnings before tax has increased by NZD 27 million over the 2 years since we launched the New Horizons roadmap, delivering NZD 1.6 million in FY26. This result was supported by profitable earnings from three of MOVE's four business divisions, embedded structural savings, and stronger operating execution. Our focus on cash generation continued to deliver results during the year. Operating cash flow increased by NZD 7.3 million. Free cash flow improved by NZD 4.2 million to NZD 6.3 million, and net debt reduced by NZD 6.3 million. These outcomes reflect disciplined working capital management, cost control, and the disposal of surplus assets.
Lee Banks: This was offset by lower people costs. Trading costs also increased year-on-year, driven by growth in our shipping services. Normalized earnings before tax has increased by NZD 27 million over the 2 years since we launched the New Horizons roadmap, delivering NZD 1.6 million in FY 2026. This result was supported by profitable earnings from three of MOVe's four business divisions, embedded structural savings, and stronger operating execution. Our focus on cash generation continued to deliver results during the year. Operating cash flow increased by NZD 7.3 million. Free cash flow improved by NZD 4.2 million to NZD 6.3 million, and net debt reduced by NZD 6.3 million. These outcomes reflect disciplined working capital management, cost control, and the disposal of surplus assets.
Speaker #2: This result was supported by profitable earnings from three of MOVE's four business divisions, embedded structural savings, and stronger operating execution. Our focus on cash generation continued to deliver results during the year.
Speaker #2: Operating cash flow increased by $7.3 million, free cash flow improved by $4.2 million to $6.3 million, and net debt reduced by $6.3 million. These outcomes reflect disciplined working capital management, cost control, and the disposal of surplus assets.
Speaker #2: During the year, we extended our ANZ facility through to August 2027 and agreed to a new BNZ invoice finance facility, which is expected to reduce ongoing finance costs and support working capital efficiency.
Lee Banks: During the year, we extended our ANZ facility through to August 2027 and agreed a new BNZ invoice finance facility, which is expected to reduce ongoing finance costs and support working capital efficiency. Net debt was NZD 10.4 million, supported in part by the sale of surplus assets. Alongside higher earnings, leverage improved to 1.02 times. The group also has an unrecognised deferred tax asset of NZD 15.6 million, providing potential future value as earnings recover. Return on invested capital increased to 10.6%, a significant improvement on prior years. Thank you, and I'll now hand you back to Paul.
Lee Banks: During the year, we extended our ANZ facility through to August 2027 and agreed a new BNZ invoice finance facility, which is expected to reduce ongoing finance costs and support working capital efficiency. Net debt was NZD 10.4 million, supported in part by the sale of surplus assets. Alongside higher earnings, leverage improved to 1.02 times. The group also has an unrecognised deferred tax asset of NZD 15.6 million, providing potential future value as earnings recover. Return on invested capital increased to 10.6%, a significant improvement on prior years. Thank you, and I'll now hand you back to Paul.
Speaker #2: Net debt was $10.4 million, supported in part by the sale of surplus assets. Alongside higher earnings, leverage improved to 1.02 times. The Group also has an unrecognized deferred tax asset of $15.6 million, providing potential future value as earnings recover.
Speaker #2: Return on invested capital increased to 10.6%, a significant improvement on prior years. Thank you, and I'll now hand you back to Paul.
Speaker #3: Thanks, Lee. The reset phase of our strategy has fundamentally reshaped MOVE, and we are now a materially stronger business than we were two years ago.
Paul Millward: Thanks, Leigh. The reset phase of our strategy has fundamentally reshaped MOVE, and we are now a materially stronger business than we were 2 years ago. While we are encouraged by the progress we've made, we're clear we still have work to do. Our focus has now shifted from structural change to value creation. While there are some signs that economic conditions are beginning to improve, the pace and timing of recovery remain uncertain. The price of fuel, which is highly volatile, is creating pressure on demand in certain sectors. Therefore, we are focusing on those things we can control to drive our performance. We have a clear plan in place for this year. Growing revenue is a key focus. We have good operating leverage with limited incremental overhead required to scale, so increased revenue should translate into higher gross margin earnings.
Paul Millward: Thanks, Lee. The reset phase of our strategy has fundamentally reshaped MOVe, and we are now a materially stronger business than we were 2 years ago. While we are encouraged by the progress we've made, we're clear we still have work to do. Our focus has now shifted from structural change to value creation. While there are some signs that economic conditions are beginning to improve, the pace and timing of recovery remain uncertain. The price of fuel, which is highly volatile, is creating pressure on demand in certain sectors. Therefore, we are focusing on those things we can control to drive our performance. We have a clear plan in place for this year. Growing revenue is a key focus. We have good operating leverage with limited incremental overhead required to scale, so increased revenue should translate into higher gross margin earnings.
Speaker #3: While we are encouraged by the progress we've made, we're clear that we still have work to do. Our focus has now shifted from structural change to value creation.
Speaker #3: While there are some signs that economic conditions are beginning to improve, the pace and timing of recovery remain uncertain. The price of fuel, which is highly volatile, is creating pressure on demand in certain sectors.
Speaker #3: Therefore, we are focusing on those things we can control to drive our performance. We have a clear plan in place for this year. Grown revenue is a key focus.
Speaker #3: We have good operating leverage, with limited incremental overhead required to scale, so increased revenue should translate into higher-margin earnings. Warehouse is a critical priority, where we need to build revenue and utilize excess capacity.
Paul Millward: Warehouse is a critical priority where we need to build revenue and utilize excess capacity. The freight turnaround program has delivered good improvement, and the focus is now on strengthening our core business, particularly efficiency and utilization, given the cost pressures we are seeing. Our goals are to deliver increased positive normalized earnings, positive cash flow, and a stronger balance sheet. We operate a diversified logistics business with national scale, long-standing customer relationships, and deep connections across a broad range of essential industries. Our market position does provide opportunities to grow as demand returns. Ultimately, our success depends on the success of our customers. Our priority is on being a trusted partner, understanding what matters to them, and consistently delivering the service, expertise, and responsiveness that make their businesses efficient and effective. Before we take questions, I have two acknowledgments.
Paul Millward: Warehouse is a critical priority where we need to build revenue and utilize excess capacity. The freight turnaround program has delivered good improvement, and the focus is now on strengthening our core business, particularly efficiency and utilization, given the cost pressures we are seeing. Our goals are to deliver increased positive normalized earnings, positive cash flow, and a stronger balance sheet. We operate a diversified logistics business with national scale, long-standing customer relationships, and deep connections across a broad range of essential industries. Our market position does provide opportunities to grow as demand returns. Ultimately, our success depends on the success of our customers. Our priority is on being a trusted partner, understanding what matters to them, and consistently delivering the service, expertise, and responsiveness that make their businesses efficient and effective. Before we take questions, I have two acknowledgments.
Speaker #3: The freight turnaround program has delivered good improvement, and the focus is now on strengthening our core business, particularly efficiency and utilization, given the cost pressures we are seeing.
Speaker #3: Our goals are to deliver increased positive normalized earnings, positive cash flow, and a stronger balance sheet. We operate a diversified logistics business with national scale, longstanding customer relationships, and deep connections across a broad range of essential industries.
Speaker #3: Our market position does provide opportunities to grow as demand returns. Ultimately, our success depends on the success of our customers. Our priority is on being a trusted partner, understanding what matters to them, and consistently delivering the service, expertise, and responsiveness that make their businesses efficient and effective.
Speaker #3: Before we take questions, I have two acknowledgments. Firstly, to MOVE's founder and former Managing Director, Jim Ramsey, who passed away this year. Jim was passionate about the industry and this business, and he left a real legacy which will live on.
Paul Millward: Firstly, to MOVE's founder and former Managing Director, Jim Ramsay, who passed away this year. Jim was passionate around the industry and this business and left a real legacy which will live on. Secondly, I want to acknowledge our team across New Zealand. The progress we have made wouldn't have been possible without their efforts and a lot of great work, particularly in a challenging market. I would also like to thank our customers for their ongoing support and, of course, our shareholders. Thank you for listening. We are happy to take any questions. Over to you, operator.
Paul Millward: Firstly, to MOVe's founder and former Managing Director, Jim Ramsay, who passed away this year. Jim was passionate around the industry and this business and left a real legacy which will live on. Secondly, I want to acknowledge our team across New Zealand. The progress we have made wouldn't have been possible without their efforts and a lot of great work, particularly in a challenging market. I would also like to thank our customers for their ongoing support and, of course, our shareholders. Thank you for listening. We are happy to take any questions. Over to you, operator.
Speaker #3: Secondly, I want to acknowledge our team across New Zealand. The progress we have made wouldn't have been possible without their efforts and a lot of great work, particularly in a challenging market.
Speaker #3: I'd also like to thank our customers for their ongoing support, and of course, our shareholders. Thank you for listening. We're happy to take any questions.
Speaker #3: Over to you, Operator.
Speaker #1: Thank you. If you would like to ask a question via the phone, you need to press the star key followed by the number one on your telephone keypad.
Operator 2: Thank you. If you would like to ask a question via the phone, you need to press the star key followed by the number 1 on your telephone keypad. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset before asking your question. If you would like to ask a question via the webcast, please type your question into the ask a question box and click submit. Once again, if you would like to ask a question via the phone, please press star 1 on your telephone and wait for your name to be announced. As there are no phone questions at this time, I will now hand over to Jackie for any webcast questions to be addressed.
Operator: Thank you. If you would like to ask a question via the phone, you need to press the star key followed by the number 1 on your telephone keypad. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset before asking your question. If you would like to ask a question via the webcast, please type your question into the ask a question box and click submit. Once again, if you would like to ask a question via the phone, please press star 1 on your telephone and wait for your name to be announced. As there are no phone questions at this time, I will now hand over to Jackie for any webcast questions to be addressed.
Speaker #1: If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset before asking your question.
Speaker #1: If you would like to ask a question via the webcast, please type your question into the “Ask a Question” box and click submit. Once again, if you'd like to ask a question via the phone, please press star one on your telephone and wait for your name to be announced.
Speaker #1: As there are no phone questions at this time, I'll now hand over to Jackie for any webcast questions to be addressed.
Speaker #2: We have no online questions at this time. I'll hand over to Paul Milwood to conclude the call.
[Company Representative] (MOVE Logistics Group): There are no online questions at this time. I will hand over to Paul Millward to conclude the call.
Jackie Ellis: There are no online questions at this time. I will hand over to Paul Millward to conclude the call.
Speaker #3: Hey, thank you for attending today, and thank you for your continued support. Have a good day.
Paul Millward: Thank you for attending today, and thank you for your continued support. Have a good day.
Paul Millward: Thank you for attending today, and thank you for your continued support. Have a good day.
Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.
Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.
