Silk Logistics Holdings (ASX:SLH) said the final earn-out payment for its unit, Secon Freight Logistics, is expected to be materially higher than the AU$10.7 million previously provisioned, according to a Monday filing with the Australian bourse.
The company said updated internal estimates suggest the payment could be in the range of AU$20 million to AU$25 million, driven by a surge in the unit's uncontracted freight volumes in early 2025, the filing said.
The final amount, due around October, will depend on Secon's fiscal 2025 earnings before interest, taxes, depreciation, and amortization and factors such as trading conditions and the unit's ability to sustain volume growth, the filing added.
The company noted that any increase in the earn-out will not impact its underlying earnings for fiscal 2025.
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