Silk Logistics Holdings (ASX:SLH) Announces FY25 Half-Year Results and Acquisition Scheme
Financial Performance
Silk Logistics reported revenue of $287.9 million for the half-year ended 29 December 2024, a 4.1% increase from $276.5 million in the previous period. The company achieved an underlying NPAT of $2.4 million, down 61.8% from the pcp. With cash reserves of $22.3 million and strong cash generation, Silk reports that it maintains a robust financial position.
Operational Achievements
The company secured new business wins of $31 million annualised and increased contracted recurring revenue to $405.7 million, up from $367.9 million as of December 2024. Contracted customers contributed 87% of warehouse revenue. Silk Logistics also reduced its Lost Time Injury Frequency Rate (LTIFR) to 0.6, enhancing its safety performance.
Scheme Update
Silk Logistics entered into a Scheme Implementation Deed with DP World Australia Limited to acquire 100% of its issued share capital. Under the scheme, shareholders will receive $2.14 per share, representing a 45.6% premium to the last closing price before the announcement. Key shareholders, including Tor Investment Management, Brendan Boyd, and John Sood, have confirmed their support for the scheme. The company is awaiting the ACCC’s review outcome, expected by 13 March 2025, and has adjourned the Scheme Meeting to a later date pending court orders.
ESG Initiatives
Silk Logistics progressed its ESG roadmap by signing a non-binding agreement to participate in an electric vehicle trial in Victoria and optimizing its Victorian footprint to reduce travel distances. The company is negotiating a new facility to increase capacity in the Southeast, thereby lowering emissions. Additionally, Silk is undertaking waste tender processes to decrease landfill diversions and set recycling targets across its network.
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