Freightways delivers record results

Freightways has delivered a record result and boosted dividend, following strong second-half trading which underpinned increased annual revenue and profit.

For its year to June, overall operating revenue was up 6%, from $406.1 million to $432.2 million, while after-tax profit rose 3%, from $40.3 million to $41.7 million.

The largest divisions in the multilayered Freightways, Express Package and Business Mail, said its brands New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express, Stuck, Pass The Parcel, DX Mail and Dataprint all contributed to an 8% lift of operating revenue, to $332 million for the full year.

''The widespread improved performance evident in our first half-year result continued and gathered further momentum through the second half-year,'' the company said yesterday.

Craigs Investment Partners broker Peter McIntyre said it was a ''positive result'' for Freightways and slightly above our forecasts, with the dividend offered well ahead of last year's.

Freightway's declared a 15% increase to the final dividend, up from last year's $15 million to $17.4 million; at 11.25c per share, imputed. Shares in Freightways were up 4c at $4.94, after the announcement.

During the year there was a one-off payment of $1.2 million, which was the final earn-out payment for acquisition of the Filesaver business in 2011.

Forsyth Barr broker Andrew Rooney said it was a ''strong result'', with accelerating profit growth throughout the year. Underlying after-tax profit was up 12% on a year ago, implying second-half growth of 16%.

The key driver was the Express Package and Business Mail division, which grew its earnings before interest, tax, depreciation and amortisation 11% on a year ago.

Add a Comment