Silk Logistics Holdings (SLH) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY2025 increased 4.1% to AUD 287.9 million, driven by integrated service offerings, annualised new business wins, and support from blue-chip customers.

• Underlying EBITDA was AUD 47.9 million, while underlying NPAT fell to AUD 2.4 million and statutory NPAT was a loss of AUD 2.1 million, impacted by AUD 1.8 million in non-recurring items.

• No interim dividend declared due to the pending scheme of arrangement with DP World Australia for acquisition at AUD 2.14 per share, a 45.6% premium to last close.

• Workforce grew by 6.2% to 1,919, with a focus on safety and diversity.

• Strong cash generation with cash to underlying EBITDA at 87.9% pre-CapEx; cash reserves at AUD 22.3 million and net asset value at AUD 79.4 million.

Financial highlights

• Underlying EBIT declined to AUD 15.6 million, with margin dropping to 5.4% due to non-recurring costs and higher depreciation.

• Underlying EPS declined 69.2% to 2.93 cents; basic and diluted loss per share was 2.63 cents.

• Underlying free cash flow post CapEx was AUD 7.0 million, down 51% year-over-year; cash conversion (pre-CapEx) was 87.9% of underlying EBITDA.

• Net assets stood at AUD 79.4 million with AUD 22.3 million in cash as of 29 Dec 2024.

• Net cash from operating activities was AUD 30.3 million, down from AUD 33.1 million year-over-year.

Outlook and guidance

• Resilient customer base and contracted revenue of AUD 405.7 million support future earnings.

• Awaiting regulatory approvals for DP World Australia scheme; scheme meeting adjourned pending court orders.

• Strategic focus on growing market share, operational efficiencies, and leveraging technology-enabled solutions.

• Continued investment in technology and ESG initiatives.

• Secon acquisition expected to be a key driver of future growth.