Fliway Group Limited is reporting half-years earnings for the six months ended 31 December 2015 exceeded the prospective financial information (PFI) estimate contained in its initial public offer (IPO) prospectus despite a challenging freight environment.
The Fliway International division saw lower revenue than forecast as a result of reduced shipping rates, and some customer churn.
The volatile pricing on shipping rates, combined with lower volumes, meant that the International division experienced softer revenue during the first half of FY16 than anticipated, and this will likely continue for the remainder of FY16.
Group revenue of $43.8 million for the 2016 half-year was below the 2015 half-year by 1.2% and 2.1% below 2016 half-year PFI, as a result of a reduced recovery of fuel costs to customers in the Transport business and lower international shipping rates.
Sound cost management resulting in a Pro-forma EBIT of $5.3 million for the first half year of 2016 was up 38.7% on the previous corresponding and 22.8% ahead of the 2016 first half-year PFI forecast.
The resulting net profit after tax (NPAT) of $3.6 million was 59.8% above the prior year and 25.0% above PFI.
“The 2016 interim result is the second and final forecast reporting point the business was required to meet following our NZX listing in April 2015,” says Fliway Group chair Craig Stobo.
He says Fliway has delivered an excellent result and has exceeded on its core financial objectives at both reporting points.
“The company has continued to demonstrate earnings growth via payback on capital expenditure invested and continued improved capacity management in the domestic business unit, in the face of a challenging trading environment,” says Stobo.
