MaxiTrans outlines its Covid-19 business adjustment efforts

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  • Plant & Equipment

Guidance withdrawn, executive payment changes to withstand crisis

MaxiTrans CEO Dean Jenkins

Despite its January and February performances being "in line with expectations", listed trailer and parts firm MaxiTrans says it is now feeling the pinch of the coronavirus (Covid-19) crisis.

It reports lower demand in both the Parts division and Trailer Solutions, with MaxiParts seeing a decline in top line revenue whilst Trailer Solutions orders have also declined due to reduced freight volumes.

However, "cash optimisation activities have resulted in a cash position better than expectations despite Covid-19 impact, further supporting group liquidity".

On its New Zealand operations, MaxiTrans continues to operate as an ‘essential service’ amid stage four restrictions, though "the supply chain remains somewhat variable and staff absence remains significantly higher since the announcement".

In Australia, federal business incentives have led to an increase in Trailer Solutions orders, though the medium term effect can’t yet be determined, the company says.

Therefore it is withdrawing its earnings guidance, and the board and management will "focus on optimising cash generation and conservation over the coming period".

Part of its measures include the following changes, starting April, for the next four months:

  • 20 per cent reduction in director’s fees
  • 25 per cent reduction in managing director’s cash payments made up of 20 per cent deferral and 5 per cent salary reduction
  • 20 per cent salary deferral for other key management personnel.

"MaxiParts and the broader MaxiTrans business provide critical services to the community in supplying parts, service and trailers to the freight and logistics industry," MaxiTrans CEO Dean Jenkins says.

"The Group is focused on cash as the key financial metric in these uncertain times."

"The Group’s first priority remains the safety of our staff, suppliers and customers and precautions have been taken to address COVID-19 concerns. The Group will continue to take further steps, including shut-down, if circumstances necessitate."

"Our team is dedicated to the ongoing support of our customers and the community though out these uncertain times."


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