Freightways delivers

By ELLEN READ

Steady growth in its core courier/express freight market drove Freightways' profit to $9 million for the half-year to December 31, a 31 per cent rise on the same period a year earlier.

Managing director Dean Bracewell said the division was supported by developing positions in the business mail sector and information management market.

"The ongoing ability of Freightways to grow earnings at consistently higher rates than revenue demonstrates [our] ability to leverage off its operating scale and increase the utilisation of its infrastructure capacity."

Freightways' courier/express freight and business mail operations had the highest growth, with a 9 per cent rise in revenues to $93.8 million and 15 per cent growth in earnings before interest, tax, depreciation and amortisation, to $16.9 million.

Its New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60 and Security Express brands had found organic growth from existing customers, new business and margin improvement.

Its business mail brand, DX Mail, has continued to improve its performance and has been generating revenue beyond expectations.

Bracewell said the outlook for Freightways was positive. "The company operates in markets with proven growth opportunities and has well-respected brands."

The first-half result was very strong, he said, and directors would seek to continue high earnings growth and high cash generation.