- Global logistics software provider WiseTech (WTC) has performed well in the financial year to date
- The company has reaffirmed its financial guidance for the 2020 financial year, reporting revenue and earnings growth, and an increased customer base
- The company’s financial position remains strong, with cash reserves of $230 million at the end of March and significant undrawn debt facilities
- Heading into the 2021 financial year, the company will continue its strategies of cost mitigation and focused investment
- In light of the company’s strong financial position and positive outlook, WiseTech is up 11.2 per cent to $15.33 per share
Global logistics software provider WiseTech (WTC) has performed well in the financial year to date, even as supply chains and markets are globally disrupted.
The company has reaffirmed its financial guidance for the 2020 financial year, reporting solid revenue and earnings growth, and an increased customer base.
WiseTech keeps an eye on the data it handles across global supply chains and trade flows. This gave the company early insight and real numbers on how the COVID-19 situation began unfolding in China, and the associated disruptions to typical market movements that arose from the rising pandemic.
As the saying goes, knowledge is power.
This advanced and specific data on the economic effects of the COVID-19 pandemic allowed WTC to offset the slowdown in new business growth and deferred rollouts of new products. Instead, the company managed to bring new customers into the fold who needed access to the data analytics and supply chain logistics solutions facilitated by WiseTech’s cloud-based software.
The company has accordingly reaffirmed its 2020 outlook, with revenue growth in the region of 21 to 29 per cent, and earnings growth around five to 22 per cent.
In the three months to March 2020, business continued in line with prior projections – proving the worth of WiseTech’s logistics solutions in the face of unprecedented global disruptions caused by the COVID-19 pandemic.
With increased pressures on worldwide supply chains, WTC found itself in rarefied air compared to most in the current climate – adding customers instead of losing them, and being one of the few companies to find an increased demand for a product that is neither protective nor ablutionary.
The company’s financial position remains strong, with cash reserves of $230 million at the end of March and significant undrawn debt facilities to fall back on should things come to an unexpected and grinding halt. WTC can see no current need to raise capital of debt in the foreseeable future, regardless of the global financial contraction.
Given the company’s product is cloud-based, its staff across 60 offices worldwide have adjusted seamlessly to working remotely and there’s been no substantial disruption to operations. The company has even been able to reopen its four China offices, and the company reports the country’s business streams are returning to normal.
Founder and CEO Richard White says the company has a big role to play in keeping things ticking for people and businesses around the world.
“We take seriously our responsibility in enabling the world’s supply chains with our critical logistics execution technology.
“We are proud of the dedication of our employees and our customers in their important efforts to keep global supply chains moving across the world and within communities during this time.”WiseTech Founder and CEO Richard White
“In this challenging economic environment, we will take necessary actions to prioritise critical technology development, be highly cost efficient, safeguard our financial strength, and continue to build our competitive position providing technology to many of the world’s largest logistics providers,” he added.
Heading into the 2021 financial year, the company will continue its strategies of cost mitigation and focused investment to make sure it is fully able to ride the rollercoaster as the pandemic continues to impact global business.
In light of the company’s strong financial position and positive outlook, WiseTech is up 11.2 per cent to $15.33 per share as at 12:32 pm AEST.