Freightways bottom line up 29pc

The courier division lifted earnings by 4 per cent to $45 million. Photo / Glenn Jeffrey

Courier and data management company Freightways lifted underlying annual net profit 7 per cent from a combination of volume and price increases as well as new business.

The Auckland-based company boosted bottom-line profit 29 per cent to $29.9 million for the year ended June 30, although it was distorted by $1.3 million in one-off costs associated with the Christchurch earthquakes and lower tax charges.

Revenue rose 7 per cent to a record $353 million. Stripping out one-off costs and an abnormal tax change, underlying earnings were $31 million.

This result was underpinned by progressively improving performance from the core express package and business mail division and outstanding performance again from the information management division, the company said.

Freightways said it had been affected by the Christchurch earthquakes and the Queensland floods but none of its team was seriously injured and contingency plans ensured minimal disruption to service.

The company said highlights included the core courier business returning double-digit earnings growth in the second and fourth quarters, the outstanding performance of the information management division and the overall resilience again shown by Freightways, despite the challenges of nature and the economy.

The courier division, which includes the New Zealand Couriers, Post Haste Couriers, Castle Parcels and DX Mail brands, lifted earnings before interest, tax and amortisation (EBITA) 4 per cent to $45 million while the data management division's EBITA rose 12 per cent to $14 million.

Freightways said it expected a gradual improvement in 2012.

It has strengthened its earnings profile in recent years by diversifying its activities geographically and in the information management market.

Freightways said it would continue to seek and develop growth opportunities.

The company will pay a fully imputed 7.25 cents per share final dividend, taking the annual payout to 14.5 cents, up from 14 cents the previous year. Earnings per share rose to 19.5 cents from 15.2 cents.

Rob Mercer at Forsyth Barr, who has a buy recommendation on the stock which he values at $4.12, said the result was in line with his forecasts.

Freightways shares rose 0.6 per cent to $3.28. They have risen from $2.67 a year ago but are down from their $3.54 peak in May.