Freightways revenue up, growth expected

Courier and information management company Freightways said September quarter revenue was up 8.3% and reiterated that it expects year-on-year earnings growth.

Revenue was $155.1million in the period, the first quarter of the firm's financial year, and net profit lifted 0.2% to $15.1million, chief executive Mark Troughear said.

Freightways is seeing increased demand for services in both its express package and business mail and its information management divisions and it "continues to target year-on-year earnings growth," he said.

"The markets in which Freightways operates in both New Zealand and Australia remain positive. Freightways has continued to experience demand for its services in both divisions, which has provided a sound start to the 2019 financial year," Mr Troughear said.

Auckland-based Freightways said facility utilisation in its information management division was 81% in New Zealand and 61% in Australia at the end of June. It is targeting 83% for New Zealand and 70% for Australia in the current financial year.

It also remains focused on developing the secure destruction and medical waste divisions to establish "a new arm of growth for Freightways."

In the first quarter of the current financial year, it bought a bolt-on secure destruction business in Western Australia, a medical waste business in Victoria, and a 75% stake in a digital online back-up business servicing New Zealand and Australia.

"Strategic growth opportunities, including acquisitions and alliances that complement existing capabilities, will continue to be executed where they make commercial sense," he said.

Overall capital expenditure for the 2019 financial year is still expected to be about $20million-$22million, Mr Troughear said.

Freightways, which delivers some 50million items annually through brands including New Zealand Couriers and Post Haste Couriers, reported a 2.1% lift in net profit to $62.2million in the year to June 30

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