Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Freightways posts 3% gain in full-year profit

Freightways posts 3% gain in full-year profit, sees further growth in 2015

By Jonathan Underhill

Aug. 18 (BusinessDesk) - Freightways, New Zealand’s largest listed courier and data management company, posted a 3 percent gain in full-year profit, driven by growth in its express package and business mail business, and said it expects further growth in 2015.

Net profit was $41.7 million in the 12 months ended June 30, up from $40.3 million a year earlier, the Auckland-based company said in a statement. Operating revenue climbed 6 percent to $432 million. Profit was just below the forecasts of Forsyth Barr and First NZ Capital at $42.8 million and $42.2 million respectively.

The company said it expects growth in 2015, helped by increased demand from existing customers of its express packaging business, while its DX Mail business "will continue to operate in a challenging environment." In information management, growth on both sides of the Tasman "has been equally strong," it said.

Sales at express packaging and business mail rose 8 percent to $332 million and earnings before interest, tax, depreciation and amortisation climbed 11 percent to $61 million.

The multi brand company, whose businesses include New Zealand Couriers, Post Haste Couriers and DX Mail, has been expanding its information management interests, buying document management companies Docushred and Document Destruction Services, as well as Advance Security Destruction Services and Document & Data Storage Management in Australia.

The information management unit lifted sales by 3 percent to $103 million and Ebitda rose 5 percent to $24 million, saying the gain would have been greater if not for the foreign exchange effect of bringing revenue home to New Zealand from Australia.

"We expect the positive performance evident in this full-year result to continue and expect to achieve year-on-year earnings growth again in 2015, subject to business factors beyond its control," the company said. "Freightways will continue to seek out and develop strategic growth opportunities, including acquisitions and alliances to complement its core capabilities."

The company has grown operating revenue and Ebitda every year except on in the past decade. It will pay a final, fully-imputed dividend of 11.25 cents a share, up from 9.75 cents a year earlier.

The shares last traded unchanged at $4.90 and have gained 18 percent in the past 12 months, outpacing a 13 percent increase in the NZX 50 Index. The stock is rated a 'hold' based on the consensus of six analysts polled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news