The Parts and Trailer Solutions divisions of MaxiTRANS has been impacted by Covid-19
In the second half of February, and through March, MaxiPARTS reportedly saw a decline in top line revenue while Trailer Solutions orders also declined significantly due to reduced freight volumes.
Cash optimisation activities have resulted in a cash position better than expectations despite Covid-19 impact, further supporting group liquidity.
From 26 March, the New Zealand Government implemented restrictions on operation of businesses throughout the country. While MaxiTRANS has been classified as an essential service and continues to operate, the supply chain remains somewhat variable and staff absence remains significantly higher than the announcement.
The Australian Federal Government incentive announced on 12 March 2020 to increase the instant asset write-off threshold from $30,000 to $150,000 (through to 30 June 2020) combined with the 15-month investment incentive (through to 30 June 2021) has seen an increase in Trailer Solution orders.
MaxiTRANS' Board management are focusing on optimising cash generation and conservation over the coming period. Due to uncertainty arising from the Covid-19 outbreak, MaxiTRANS has withdrawn any guidance previously provided.
For a four-month period commencing 1 April 2020, MaxiTRANS will action: 20 per cent reduction in Director's; 25 per cent reduction in Managing Director's cash payments made up of 20 per cent deferral and five per cent salary reduction; and 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,” said MaxiTRANS Managing Director and CEO, Dean Jenkins.
“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,” he said. “Our team is dedicated to the ongoing support of our customers and the community through out these uncertain times.”
In other news, tipper specialist, Hamelex White, has celebrated 25 years of producing high quality locally manufactured trailing equipment to the road transport industry.