Courier company Freightways delivered a steady if unspectacular full-year result with both increased revenue and profits driven by increased migration and higher consumer demand, and is predicting incremental growth in the year ahead.
The Auckland-based company reported a 5.4 per cent revenue increase to $505.4 million for the year ended June 30, while underlying profit, before one-off items, rose 8 per cent to $54.4m.
There was a non-recurring charge of $6.3m relating to the further write-down of the carrying value of its four Convair aircraft, which fully retire by the end of this month, and related spare parts. Half the $15m dollar book value of the fleet was written down immediately when the decision was made to switch to leasing and operating three Boeing 737-400s which carry higher volumes.
The Convair aircraft, which haven't yet attracted any buyers, are now valued at a total $1m - the value of their spare parts.
Freightways chief executive Dean Bracewell said it was a "good, strong result for Freightways once again" with all divisions showing growth.