Status of Essential Businesses, Withdrawal of Guidance
26 Mar 2020
- TIL advises that a number of its businesses are considered to be essential businesses and will continue operating.
- Given the likely impact from COVID-19 on the business, FY20 earnings guidance has been withdrawn.
- TIL has been engaging with its banking partner as the situation unfolds to ensure liquidity.
Following the decision by the New Zealand Government to move the country to COVID-19 Alert Level 4 from 25 March 2020, TIL Logistics Group advises that a number of its businesses are considered to be essential businesses and will continue operating.
In particular, TIL’s freighting, logistics and fuel haul businesses will continue providing their services to ensure that essentials such as food, beverage, medical and pharmaceutical supplies, fuel and other key consumer goods continue to be delivered to support the country at this time. The Specialised Lifting and Transport Group will suspend business other than in relation to specific work related to critical infrastructure.
Since TIL announced its first-half results in February, the Company’s businesses have continued to trade largely in line with expectations. However, it is now clear that covid-19 and the significant escalation of Government protection measures will have a material impact on many of TIL’s customers, and flow on effects for TIL’s operations and earnings. This is despite some of the businesses continuing to operate through the period as essential services. For that reason, the Board is withdrawing its earlier earnings guidance for the FY20 financial year.
TIL has been engaging with its banking partner to ensure that it maintains the liquidity to trade through this period.
CEO of TIL, Alan Pearson, said: “This is an unprecedented situation for New Zealand and we are committed to doing our part to ensure essential goods and products remain available and accessible during this time.
“Our first priority is to ensure a safe work environment for our people and for those they work with, and we have detailed health and safety protocols in place. I would like to thank our employees, contractors and suppliers who are working tirelessly to ensure New Zealand’s critical supplies continue to be available where needed.”