No stuffed shirts for Mainfreight board please, Braid says

No stuffed shirts for Mainfreight board please, says Don Braid

July 28 (BusinessDesk) - Mainfreight Ltd. fare-welled two board members today with a plea to shareholders not to elect new directors who might "bow to politically correct and pedantic opinion."

Don Rowlands, 85, retired from the company he chaired between 1983 and 1996 and on whose board he has sat ever since. Another long-serving director, Neil Graham, retired a few weeks back owing to poor health.

Managing director Don Braid and chairman Bruce Plested both paid tribute. Braid said a strong board has been "crucial to our success" and rebuffed criticism he said had been leveled at directors for their "age and longevity of tenure." Their replacements needed to be well-chosen, he said.

"Replacing these men from a 'pool' of retired businessmen and professional directors could significantly impact on your investment with us," Braid told shareholders at their annual meeting today.

The shares rose almost 2% today as Braid told shareholders Mainfreight's sales will soar 42% next year, helped by Wim Bosman, stoking earnings at New Zealand's biggest trucking firm.

He forecast revenues "close to $1.9 billion" up from a record $1.34 billion in the latest full year. Earnings before interest, tax, depreciation and amortisation would exceed $130 million, up from $91.6 million ebitda in the 12 months ended March 31 this year.

The revised outlook doesn't take into account improvements in Mainfreight's existing businesses, Braid said. Mainfreight will get 70% of its earnings on that basis from offshore.

Wim Bosman gives the company reach in Europe that can be strengthened with Mainfreight's Air and Ocean operation, Braid said.

The Netherland's based business also "provides us with the logistics capability to grow our international freight between Europe and our Asia and American interests," Braid said. "These two trade lanes, coupled with our already-successful Asia-American trade lanes, are the three largest freight lanes in the world."

Shares of Mainfreight rose about 2% to $10.35 on the NZX today.

(BusinessDesk)

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