Bellweather transport company Freightways has reported a ``sound'' start to first quarter trading, with revenue and after-tax profit up respectively 7% and 6.4%.
Revenue rose from $133.8 million a year ago to $143.2 million and after-tax profit was up from $14.1 million to $15 million.
In all but one of the past 13 years, Freightways has increased operating revenue, from just over $200 million in 2004 to almost $550 million for 2017.
Since Freightway's initial public offering in 2003 at $1.60 a share it had gained 374% in value, but traded down 2c to $7.58 following yesterday's market update.
Managing director Dean Bracewell said the increased volume and activity had provided a ``sound start'' to the financial year, as Freightways continues to target year-on-year growth in earnings.
``The markets in which Freightways operates in both New Zealand and Australia remain positive,'' he told shareholders at their annual meeting yesterday.
Within its express package and business mail division, Mr Bracewell said investment had been made in future capacity for both airfreight and larger premises on Auckland's North Shore.
The combined express package and business mail revenue rose 7.3% to $105.3 million for the quarter.
New Zealand Couriers would relocate to the North Shore this month, followed by Post Haste and Castle Parcels in July next year.
``This capacity, which is initially not fully utilised, comes at some cost, but enables us to better service current volumes and projected growth,'' he said.
Overall capital expenditure for the 2018 financial year was now expected to be about $14million.
Within the information management division, which had revenue increase 6.8% to $38.3million, the better results being achieved at TIMG Australia, compared with a year ago, were expected to continue to contribute to the overall positive performance of that division, he said.
After 34 years with Freightways, including the last 18 years as managing director, Mr Bracewell is stepping down. Mark Troughear, who has been with Freightways for 21 years, will take up the chief executive role in January.
