Freightways delivers profits

Freightways Express yesterday posted a 22 per cent increase in net profit to $4.75 million in the half year to December.

That was on an 8 per cent rise in operating revenue to $90 million.

Earnings before interest, tax and amortisation (ebita) for the half year were $12.1 million, up 16 per cent over the previous corresponding period and well in excess of the solid revenue growth achieved.

The net profit comfortably covered the preference share dividend charge for the period of $1.1 million.

Chairman Ken Barry said the result was "very commendable, given the highly competitive markets in which Freightways operates and the varying economic conditions that prevailed during the period reported."

The company is owned by Alan Gibbs, Trevor Farmer and their families through Tappenden Construction.

Freightways said its performance for the half year had been underwritten by sound growth across the group.

Growth opportunities were seen as prevalent in all sectors in which the Freightways operated.

"Acquisition opportunities will also continue to be explored where appropriate."

Freightways paid the six-monthly preference share dividend of 3.77c per share (fully imputed) to its preference shareholders on October 31.

The Courier/Express freight and business mail operations earned revenue of $81 million for the half year, 8 per cent above the half year to December 1999.

The result included a full six months trading from its most recent acquisition, Fieldair Holdings, compared to two months trading in the previous comparative period.

December was a particularly strong month for the Courier/Express freight businesses, with New Zealand Couriers in particular achieving record volumes of deliveries in the lead-up to Christmas.

- NZPA