A widespread increase in activity has enabled Freightways Limited to post a record result for the half year ended 31 December 2013.
Consolidated operating revenue of $218 million was 6% higher than the prior comparative period (PCP).
Excluding a non-recurring item in the PCP, earnings (operating profit) before interest, tax, depreciation and amortisation (EBITDA) of $42 million and EBITA of $36 million for the half year were up 6% and 7%, respectively, over the PCP, while consolidated net profit after tax (NPAT) of $22 million for the half year was 9% higher than the PCP.
Managing director Dean Bracewell says the first six months has delivered record performance in the express package and information management businesses, the successful execution of several acquisitions have enhanced the positioning of the company, and its largest express package business, New Zealand Couriers, has passed the 50th year milestone.
The operating revenue for the core express package & business mail division of $168 million for the half year was 7% higher than the PCP. This division contributes around 75% of Freightways’ revenue and earnings through its domestic brands of New Zealand Couriers, Post Haste, Pass The Parcel, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express, Stuck, DX Mail and Dataprint.
The three internal service providers, Fieldair Holdings, Parceline Express and Freightways Information Services continue to deliver outstanding service, underpinning that offered by the front-line businesses says Bracewell.
Bracewell also says Freightways expect the positive growth evident in this half year result to continue in the foreseeable future. In the express package businesses it is particularly encouraged by the broad-based improvement evident in the half year result and expect this growth to continue both from Business to Business (B2B) and Business to Consumer (B2C) deliveries.
Capital expenditure for the half year was $9 million and is expected to be approximately $16 million for the full year to support Freightways’ continued growth and development. Cash flows are expected to remain strong throughout the 2014 financial year.
